Kathleen Valley Project

HIGHLIGHTS  

  • Maiden Mineral Resource: ~21.2Mt @ 1.4% Li2O (lithium) and 170ppm Ta2O5 (tantalum).
  • 75% of the Mineral Resource is Measured or Indicated.
  • Scoping study confirms potential for a commercially robust mining operation.
  • 16,000m resource expansion drilling in progress aimed at significantly extending mine life.
  • Comprehensive test work ongoing to optimize grade and recoveries.
  • Feasibility studies scheduled for completion by Q1 2020.
  • Granted Mining Leases close to established transport, energy and camp infrastructure.
  • 100%-owned Project.

OPPORTUNITY  

The Kathleen Valley Project is a high-grade lithium deposit located on granted Mining Leases in an established and well serviced mining region, approximately 680km north-east of Perth, Western Australia (Figure 1).

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 Mineral Resource Estimate of ~21.2 million tonne Lithium-Tantalum, of which 75% is classified as Measured or Indicated (Table 1), and preliminary metallurgical test work that confirmed a saleable lithium concentrate can be produced. Following the positive Scoping Study the Liontown Board approved the commencement of a Feasibility Study targeted for completion in early 2020.

Table 1: Kathleen’s Corner and Mt Mann Mineral Resource as at September 2018
 
  • Notes: Reported above a Li2O cut-off grade of 0.5%
  • Tonnages and grades have been rounded to reflect the relative uncertainty of the estimate

Figure 2: Preliminary Site Layout

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.

The Measured, Indicated and Inferred Mineral Resource was prepared by independent specialist resource and mining consulting group Optiro Pty Ltd (“Optiro”) and encompasses the Kathleen’s Corner and Mt Mann deposits. The Mineral Resource estimate is reported and classified in accordance with the guidelines of the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code; 2012). The Scoping Study was prepared by Lycopodium Minerals.

DRILLING PROGRAM  

A 16,000m resource expansion drilling program commenced in February 2019 targeting further Mineral Resource growth aimed at increasing the mine life – with the updated Mineral Resource to be incorporated into the upcoming Feasibility Studies.

For all significant drilling results and statistics please see ASX Announcement ‘Final assays expand Kathleen Valley lithium deposit ahead of maiden Resource' - 6th August 2018.

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

GEOLOGY

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. 

Eighteen mineralised pegmatites have been identified hosted by two pegmatite swarms – Kathleen’s Corner and Mt Mann.

LAND STATUS

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:

  • 2% Gross Production Royalty affecting M36/264-265 and 459-460.

The EL is in the name of Liontown Resources Limited (LTR) with no third party obligations apart from statutory requirements.

RELATED DOCUMENTS

Click here for JORC Tables.
 

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