Buldania Project

HIGHLIGHTS

  • Initial drill results reveal zones more than 50m wide with individual grades up to 2.5% Li2O, hosted by shallow-dipping pegmatites.
  • Follow-up drilling has extended mineralisation at Anna prospect to the south east under shallow cover - strike length >1.3km and remains open.
  • Project expanded to 67km2 following incorporation of M63/647 which was previously excluded from Agreement with Westgold. New area is located 5-8km NW of Anna and includes a number of outcropping spodumene-bearing pegmatites with rock chip values up to 2.7% Li2O.
  • Part of a larger, 650km2 strategic land holding in a lithium-rich province.
  • Progressing towards a Maiden resource in Q1 2019.

OPPORTUNITY

The Buldania Project is Liontown’s second hard-rock lithium discovery in Western Australia, located in the southern part of the Eastern Goldfields Province - a region well-known for hosting significant lithium deposits including the operating Mt Marion and Bald Hill mines.  

The Buldania Project is part of a larger, highly prospective 650km2 land position compiled by Liontown since late 2017, including the neigbouring Norcott and Killaloe Projects (Figure 1).

The 100% owned Buldania Project is 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. 


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

EXPLORATION

Since acquiring the Buldania Project, Liontown has drilled a 99 holes for 11,557.5m confirming the discovery of new, large spodumene-related lithium bearing pegmatite at the Anna prospect.

Recently completed Reverse Circulation (RC) and diamond core drilling program have further 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 (see Figure 2 for position)

In mid-November 2018, Liontown advised that it expanded the Buldania Project area after reaching agreement with Avoca Resources Pty Ltd (“Avoca”), a wholly-owned subsidiary of Westgold Resources Limited (ASX: WGX), to incorporate granted Mining Lease M63/647 (Figure 1) into the existing Buldania Lithium Rights Agreement (BLRA).

Mapping and rock chip sampling by Avoca on M63/647 and by Liontown on tenure immediately adjacent have defined a number of outcropping, spodumene-bearing pegmatites (Figure 4). Individual pegmatites are up to 800m long and 20m wide with assays of up to 3.0% Li2O and 200ppm Ta2O5. Outcrop is sparse and it is probable that mineralisation is more extensive.

For a full listing of rock chip statistics, please refer to ASX Announcement- 'Liontown further expands prospective lithium footprint at Buldania in WA’s South-Eastern Goldfields’-13 November 2018. 

There has been no drilling into the newly discovered pegmatites, which are located between 5km and 8km north-west of the Anna pegmatite.

Further geochemical sampling is planned to optimise targets for drill testing in Q1 2019.

Figure 4: Buldania/Killaloe Projects -  Rock chip sampling on and adjacent to M63/647 showing better lithium results

FUTURE EXPLORATION

  • Drill out Anna lithium mineralisation and prepare maiden Mineral Resource estimate.
  • Complete further target definition work (geochemistry and geology) in new pegmatite area and complete initial drill testing.

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

LAND STATUS

Acquisition Terms Buldania

The original BLRA executed in October 2017 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 or its nominee.

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.

The Tenements are covered by the Ngadju Determined Native Title Claim (WCD2014/004). Avoca has an Access Agreement with the Ngadju which will apply to Liontown’s exploration activities.

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