Liontown Resources Ltd has received firm commitments to raise A$3.0 million (before costs) to accelerate drilling, resource definition and initial scoping study activities across its three highly prospective Australian battery metal projects. Mineral Resource statements expected for all three projects over the next two quarters.
The proceeds will be used to rapidly advance drilling, resource development and initial scoping study activities at Liontown’s highly prospective 100%-owned Kathleen Valley lithium project, Buldania lithium project and Toolebuc vanadium project.
Kathleen Valley (Western Australia):
- Mineral Resource definition drilling program, which is currently being undertaken by two drill rigs, scheduled to be completed by mid-July
- Maiden JORC-compliant Mineral Resource statement scheduled for Q3 2018
- Metallurgical test-work and scoping studies planned for Q3/Q4 2018.
Buldania (Western Australia):
- Follow-up drilling scheduled to commence in mid-July to define the full extent of the Anna prospect, where initial drilling returned results of up to 58 m @ 1.2% Li2O from 39 m
- Resource definition drilling expected to follow on afterwards.
Toolebuc Vanadium (Queensland):
- Independent resource consultants, Optiro, engaged to prepare an initial JORC-compliant Mineral Resource using historical drill data – maiden JORC Mineral Resource statement scheduled for Q3 2018
- Further drilling planned for Q3 2018 to extend the potential resource area and collect samples for further metallurgical test work.
At Kathleen Valley, resource definition drilling is well advanced with a Reverse Circulation (RC) and diamond core rig currently operating. This phase of drilling is on track to be completed by mid-July, with all assays due before mid-August 2018.
Geological modelling is continuing and the company is aiming to release a maiden Mineral Resource before the end of Q3 2018.
Drill core from the diamond drilling program will be used to undertake preliminary metallurgical studies and independent consultant Lycopodium Minerals has been engaged to supervise this work.
At Buldania, the maiden drilling program earlier this year intersected significant lithium results (see ASX release dated 26th March 2018) at the Anna Prospect, where the mineralised trend remains open along strike and at depth.
Follow-up RC drilling is scheduled to commence in mid-July to further define the Anna mineralisation, with resource definition drilling planned to commence as soon as the size and shape of the pegmatite is determined.
At the Toolebuc vanadium project in northwest Queensland, previous (2008) grid-based drilling defined shallow, continuous vanadium mineralisation over an area of 5 km x 3 km on Liontown’s tenure.
Further drilling is also planned at Toolebuc in Q3 2018 to test for extensions of the potential resource area, which remains open to the north and east, and to collect samples for metallurgical test work which will be overseen by ANSTO in Sydney.
Liontown’s Managing Director, David Richards, said the strong response from investors to the placement reflected the growing confidence in the Company’s three battery metal projects – all of which were now moving rapidly up the value curve.
“Liontown is in the fortuitous position of having not one, but three quality projects located in active mining districts, close to established, modern infrastructure and with outstanding potential to define significant lithium and vanadium resources.
“Drilling at Kathleen Valley has continued to uncover a project with significant grade and scale, having many of the key attributes required to become an exciting development and growth opportunity in the rapidly evolving lithium industry in Western Australia.
“While at an earlier stage, the Buldania lithium project also offers excellent potential – and we are looking forward to delineating the extent of the mineralisation in the coming months.”
