Buldania Project

HIGHLIGHTS

  • Advancing a second lithium discovery to a maiden Resource estimate in Q3 2019.
  • Drilling has extended mineralisation at Anna prospect to the south east under shallow cover - strike length >1.3km and remains open.
  • Second spodumene-bearing pegmatite swarm (NW Pegmatites) 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. Further drilling expanded the scale of the emerging lithium discovery, extending the main zone of mineralisation over a strike length of at least 1.3 kilometres with the zone open towards the south-east and at depth.

Better intersections include up to 58m @ 1.2% Li20 and are shown in Figures 2 and 3. For the latest results and figures, please refer to the ASX Announcement – ‘Latest assays confirm lithium mineralisation extends over >1.3km strike length at the Buldania Lithium Project in WA’ – 20 November 2018. 

Figure 2: Buldania Project/Anna Prospect – Drill hole plan showing better lithium intersections

Figure 3: Buldania Project / Anna Prospect – Long section showing better lithium intersections 

PROPOSED DRILLING PROGRAM

Reverse Circulation (RC) drilling (~8,000-10,000m) recommenced at at Anna in May 2019 and results from this program should provide sufficient data for the preparation of a maiden Mineral Resource estimate.

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 of 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.

Under the terms of the BLRA, Liontown Resources Limited, through its wholly-owned subsidiary, LRL (Aust) Pty Ltd (“LRL”), has acquired 100% of the lithium and related metal rights (which includes beryllium, caesium, niobium, rubidium, tantalum or tin) by agreeing to:

  • Pay ongoing statutory rents and rates for the Tenements while the BLRA is current; and
  • Pay Avoca $2 per tonne of ore mined and 1.5% of the gross sales revenues in respect to any lithium or related metals extracted from the Tenements.

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