Figure 1: Kathleen Valley Project Location
A Scoping Study completed in January 2019 confirmed the potential for a viable standalone 2Mtpa lithium mining and processing operation. The study was based on a maiden Mineral Resource Estimate of ~21.2 million tonne @ 1.4% Li2O and 170ppm Ta2O5, of which 75% is classified as Measured or Indicated, and preliminary metallurgical test work that confirmed a saleable lithium concentrate can be produced.
Figure 2: Conceptual 2Mtpa Open Pit based on 2018 MRE
Resource expansion drilling (Figure 3) has intersected thick zones of high-grade pegmatite and extended the mineralisation to the north-west well beyond the current conceptual open pit, including the best-ever intersections – 52m @ 1.4% Li2O and 90m @ 1.3% Li2O. Liontown has defined an Exploration Target of 19 – 31Mt @ 1.2 – 1.5% Li2O*in addition to the maiden MRE of 21.2Mt @ 1.4% Li2O. If the Exploration Target is successfully converted to JORC compliant Mineral Resources it could substantially extend the potential mine life at Kathleen Valley.
The resource expansion drilling program is scheduled for completion at the end of May 2019 and an updated Mineral Resource Estimate is due for release in late June 2019.
(*The potential grade and tonnage of the Exploration Target referred to above is conceptual in nature and there has been insufficient exploration to estimate an increased Mineral Resource. It is uncertain if further exploration will result in the estimation of an increased Mineral Resource. See Appendix 2 for full explanation of the assumptions used to estimate ranges.)
Figure 3: Drill hole plan showing better lithium intersections for the 2019 drilling program.
Details of the Scoping Study are provided in ASX release titled 'Kathleen Valley Scoping Study confirms potential for a new WA lithium mine development' – 29th January 2019.
Details of the Mineral Resource estimate are provided in ASX release titled 'Maiden 21.2 million tonne Lithium-Tantalum Mineral Resource sets strong growth foundation for Liontown at Kathleen Valley' - 4th September 2018.
Details of the Resource Expansion drilling are provided in ASX release titled 'Spectacular intercept of 90m @ 1.3% Li2O at Kathleen Valley' - 20th May 2019.
The Kathleen Valley Lithium Project is located on the western edge of the Norseman-Wiluna Belt within the Archaean Yilgarn Craton approximately 400km north of Kalgoorlie. The lithium mineralisation is hosted within spodumene-bearing pegmatites, which are part of a series of LCT-type rare metal pegmatites that intrude mafic and sedimentary rocks in the region.
The Kathleen Valley Lithium Project comprises four Mining Leases (MLs) and one Exploration Licence (EL). The MLs and rights to pegmatite hosted rare-metal mineralisation were acquired from Ramelius Resources Limited via a Sales Agreement completed in 2016. The MLs have been transferred to LRL (Aust) Pty Ltd, a wholly owned subsidiary of Liontown Resources Limited (LTR); however, Ramelius retains the rights to gold.
Ramelius acquired the Kathleen Valley Project MLs in June 2014 from Xstrata Nickel Operations Pty Ltd (Xstrata). Xstrata retains rights to any nickel discovered over the land package via an Offtake and Clawback Agreement.
LRL (Aust) Pty Ltd has assumed the following Agreement:
The EL is in the name of Liontown Resources Limited (LTR) with no third party obligations apart from statutory requirements.
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