Buldania Project

HIGHLIGHTS

  • Advancing a second lithium discovery to a maiden Resource estimate in 2H 2019.
  • Latest resource definition drilling has extended previously defined mineralisation at Anna prospect to the south east under shallow cover - strike length >1.4km.
  • Mineralised system remains open both along strike and at depth.
  • Reverse Circulation drilling is ongoing with ~3,000m of drilling remaining.
  • Second spodumene-bearing pegmatite swarm discovered 5-10km NW of Anna – individual pegmatites  up to 800m long and 20m wide with rock chip assays up to 3.5% Li2O.
  • Similar geology to the Mt Marion and Bald Hill lithium deposits (71Mt and 26Mt respectively).
  • Large, prospective 600km2 area in a lithium-rich province, close to good infrastructure.

 

OPPORTUNITY

The Buldania Project is Liontown’s second hard-rock lithium project in Western Australia, located in the southern part of the Eastern Goldfields Province - a region which also hosts the operating Mt Marion and Bald Hill lithium mines (Figure 1).  

The Buldania Project is a highly prospective 600km2 area close to major road and rail infrastructure, with direct links to the Port of Esperance, critical to the mining and production of bulk commodities such as spodumene concentrates.  The Project is located, approximately 600km east of Perth and 200km north of the regional port of Esperance.


Figure 1: Buldania Project – Location, tenure and regional geology plan

Reverse Circulation (RC) drilling in early 2018 discovered a new, large spodumene- bearing pegmatite at the Anna prospect.

Resource definition drilling re-commenced in June 2019, with strong initial results extending the mineralisation at the Anna prospect to the south-east and east for a continuous strike length of at least 1.4km, with the system remaining open (Figures 2 and 3).

Mineralisation is hosted by multiple, stacked, sub-parallel pegmatite lenses which vary from ~5-25m in thickness. In places, the pegmatites merge to form zones >50m thick.

For the latest results and figures, please refer to the ASX Announcement – ‘Strong initial assays from resource definition drilling at Buldania ’ – 22 July 2019

Figure 2: Anna Pegmatite – Drill hole plan showing better lithium intersections

Figure 3: Anna Pegmatite – Long section looking northeast showing better lithium intersections.

Recent data has increased the geological understanding of the Project, which will be incorporated into the preparation of a maiden Mineral Resource Estimate, due for completion in 2H 2019.

In addition, initial drill testing of the new target area (Figure 4) located 5-10km NW of Anna will be undertaken.

Figure 4: NW Pegmatite area (~5-10km NW of Anna Prospect) Lithium-in-soil image showing better rock chip assays.

For further information please see our Investor Presentation and ASX Announcements.

LAND STATUS

The Buldania Project comprises three areas which were acquired from separate parties:

·         Buldania Lithium Rights Agreement (BLRA);

·         Killaloe; and

·         Norcott

BLRA

The original Buldania Lithium Rights Agreement (BLRA) was acquired from Avoca Resources Pty Ltd, a wholly owned subsidiary owned by RNC Minerals (previously Westgold Resources Limited), in October 2017. It included one granted Exploration Licence (EL 63/856) and one granted Prospecting Licence (PL63/1977). Mining Lease M63/674 was incorporated into the BLRA in November 2018 in return for Liontown issuing 10 million shares to Westgold Resources Limited.

Other than a state statutory royalty, there are no royalties in relation to the BLRA.

Avoca retains the rights to all other metals (excluding lithium and related metals) and has priority access for exploration.

 

Killaloe

The Killaloe Project area is located immediately west of the BLRA,  totals ~140km2 and comprises four granted Exploration Licences (ELs 63/1018, 1655, 1660 and 1713), one granted Mining Lease (M 63/177) and one Prospecting Licence Application (PL63/2134).

EL 63/1018 is subject to an agreement with Cullen Exploration Pty Ltd, with Cullen owning 20% of the tenement. All other tenements are 100%-owned by LRL (Aust) Pty Ltd, which is a wholly-owned subsidiary of Liontown Resource Limited.

The Project was acquired from Matsa Resources Limited for 20 million fully-paid ordinary shares, at a deemed value of 3cps. In addition Matsa retains a 1% NSR for all minerals produced by Liontown.

 

Norcott

The Norcott Project is located ~5km south of the BLRA and comprises two exploration licence applications (ELA 63/1824 and EL 63/1863) - which cover a contiguous area of approximately 370km2.

Liontown acquired 100% of the mineral rights for Norcott tenements from private group Galahad Resources Pty Ltd.

 

OTHER COMPANY PROJECTS

View our Kathleen Valley Lithium Project