Figure 1: Kathleen Valley Project Location
Liontown has substantially increased the Mineral Resource Estimate (MRE) for Kathleen Valley, taking a major step towards its objective of developing a high-quality, long-life lithium-tantalum mining operation in Western Australia.
The new Measured, Indicated and Inferred Mineral Resource estimate comprises:
Table 1: Kathleen Valley Mineral Resource as at July 2019
The updated Mineral Resource Estimate (MRE), which incorporates the results of the highly successful resource expansion drilling program completed in the 1H 2019, represents an increase of 353% in tonnes compared with the maiden Mineral Resource announced in September 2018.
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 the 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: 3D view (looking north) of drill holes and wireframes of mineralised pegmatites.
Resource expansion drilling (Figure 3) 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 –90m @ 1.3% Li2O and 83m @ 1.5% Li2O.
Liontown has completed approximately 43,000m of reverse circulation and 4,500m of diamond drilling at Kathleen Valley since project inception in early 2017.
Additional details of the resource expansion drilling are provided in ASX release titled 'Further spectacular drill intercepts returned from Kathleen Valley' - 24th June 2019.
The updated Resource will underpin ongoing feasibility studies.
Figure 3: Drill hole plan showing better lithium intersections for the 2019 drilling program.
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 were transferred to LRL (Aust) Pty Ltd, a wholly owned subsidiary of Liontown Resources Limited (LTR).
In July 2019, LRL acquired the remaining mineral rights (including gold) from Ramelius.
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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