Toolebuc Vanadium Project

OPPORTUNITY

Historical drill hole data has confirmed the presence of widespread vanadium mineralisation at the Toolebuc Vanadium Project (formerly RJC Vanadium Project), immediately east of the 671Mt Lilyvale Mineral Resource of Intermin Resources. Exploration in the region by other parties has previously defined extensive vanadium mineralisation and Liontown considers the potential for further discoveries to be high.

The Project tenure adjoins Intermin Resources’ (ASX:IRC) Rothbury and Lilyvale vanadium deposits, which host JORC (2012) Inferred resources of 1.76Bt @ 0.31% V2O5 and 0.67Bt @ 0.35% V2O5 respectively (see IRC release dated 20th March 2018). Initial work indicates that similar grades and widths of mineralisation occurs within Liontown’s tenure and that Intermin’s resources extend eastward onto the Toolebuc Project area.

The Toolebuc Vanadium Project is located close to existing infrastructure including a gas pipeline, a major highway and railway linked to Townsville Port.

For further information and figures please see ASX Announcement ‘Toolebuc Vanadium Project (Northwest Queensland) Update’ – 4th April 2018 and ASX Announcment 'Extensive Vanadium Mineralisation Defined - Toolebuc Project' - 23rd April 2018

Figure 1: Toolebuc Vanadium Project - Location, regional geology and tenure

LOCATION

The Project is located approximately 400km west of Townsville in north-west Queensland and comprises five granted Exploration Permits (EPMs) covering a total area of ~1,000km2 (Figure 1).

GEOLOGY

Rock chip sampling undertaken late last year returned assays up to 0.36% V2O5 (Figure 1) from strongly oxidised material, and a 20kg sample was submitted to ANSTO Minerals in Sydney for preliminary metallurgical test work. Preliminary results from the test work indicate that the mineralised material is oxidised, soft, friable and probably free-digging; the vanadium is largely contained within the finer fraction (<38um) meaning it may be suitable for pre-concentration; and the mineralisation is amenable to acid leaching.

These results indicate that the vanadium mineralisation on Liontown’s tenure is similar to the upper mineralised zone within Intermin Resources’ (ASX: IRC) Lilyvale Project Resource, located adjacent to the Toolebuc Vanadium Project, which will be the focus of initial development work by Intermin and its JV partner (IRC release 20th March 2018).

A review of historic reports (ASX: IRC release dated 12th March 2010) indicates that the Lilyvale Resource extends on to Liontown’s project tenure where previous resource drilling was completed over a 5km x 3km area (Figure 2).

Figure 2: Lilyvale Area – Plan showing Intermin/AXF resource, tenement boundary, previous drilling and target area on Liontown tenure

Land Status

The Toolubec Vanadium Project is 100% owned.