Liontown Resources Limited (ASX: LTR) has achieved further outstanding results from the ongoing resource expansion drilling programme at its 100%-owned Kathleen Valley Lithium-Tantalum Project in WA.
Managing Director David Richards said the latest assay results, which include high-grade intercepts up to 3.8% Li2O over 10.4m and 2% Li2O over 33.4m, have confirmed the continuity of the Kathleen Valley mineralised system which has now been defined over at least 1.7km with mineralisation remaining open along strike and at depth.
The results listed in the highlights also confirm:
- The extension and continuity of high-grade mineralisation for at least 400m north of the July 2019 of Mineral Resource Estimate (MRE); and
- The down plunge extension of the high-grade feeder which is interpreted to be formed from multiple pegmatites coalescing at depth to form a single zone up to 75m thick.
Liontown previously announced that the current drilling program was designed to test for a resource extension Exploration Target of 25 – 50Mt @ 1.2 – 1.5% Li2O, which was in addition to the MRE (74.9Mt @ 1.3% Li2O and 130ppm Ta2O5) released in July 2019.
Mr Richards said the company now believes that it has sufficient data to prepare an interim MRE update, which will determine whether the Exploration Target has been achieved.
Independent resource consulting group Optiro Pty Ltd has been engaged to prepare this update.
The interim MRE update may include a large Inferred component; however, infill drilling utilising up to five drill rigs will continue until the end of February to provide the data to prepare a final MRE which should be largely Measured and Indicated and a suitable basis for a Definitive Feasibility Study (DFS) due to start later this year.
The final MRE will include both open pit and underground resources which are anticipated to provide the best outcome for the DFS.
Mr Richards said a Pre-Feasibility Study (PFS) released late last year and based on the July 2019 MRE has already demonstrated potential robust economics for the Kathleen Valley Project.
The PFS generated a maiden Ore Reserve of 50.4Mt @ 1.2% Li2O and, based on open pit mining only at a rate of 2Mtpa, indicated a NPV of A$507M, a 26-year mine life and free cash flow of A$1.9 billion (excluding tantalum credits) over the life of the mine.
Since drilling re-commenced in late August 2019, 26 new RC holes have been drilled, 11 previous RC holes have been extended and 32 new diamond core holes have been drilled for a total of 24,990m. Eleven of the diamond core holes have been drilled for geotechnical purposes.
The total amount of drilling completed by Liontown at Kathleen Valley comprises 403 holes for 72,625m, including 329 RC holes for 54,191m and 74 diamond core holes for 18,434m.
This total includes 39 RC holes which have been extended following receipt of results along strike that indicated the potential for deeper mineralisation.
26 holes for ~7,500m remained to be drilled.