Nov 1, 2024

Liontown Resources Hits 55m @ 1.7% Li2O at Kathleen Valley, Western Australia

Liontown Resources (ASX: LTR) has reported exceptional new drill results from its Kathleen Valley Lithium-Tantalum Project in Western Australia, highlighted by 12m at 3.1% Li2O from 218m, representing the highest-grade intersection to date at the project.

Drill Results

12m @ 3.1% Li2O from 218m (including 9m @ 3.8% Li2O) [KVRC0266]
55m @ 1.7% Li2O from 301m (including multiple high-grade zones) [KVDD0046]
64m @ 1.2% Li2O from 321m (including 9m @ 1.9% Li2O) [KVDD0045]‍
25m @ 1.5% Li2O from 408m (including 7m @ 2.7% Li2O) [KVDD0043]

Project Overview

The Kathleen Valley Project represents Australia's fifth-largest lithium deposit, with a current Mineral Resource Estimate of 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5. The project is located in Western Australia, a Tier 1 mining jurisdiction. Mineralization has now been intersected over a strike length of 1.4km, with the system remaining open to the north and at depth.

Program Details

A 15,000m drilling program is currently underway with two RC rigs and one diamond rig operating on-site. The program is testing an exploration target of 25-50Mt @ 1.2-1.5% Li2O, targeting extensions from previous drilling to approximately 500m below surface. Mineralization is characterized by multiple coalescing pegmatites forming a substantial feeder zone.

Understanding These Results

The latest intersections demonstrate significant thickness and high-grade continuity, with true widths estimated at 80-100% of reported down-hole widths. The results confirm both strike extension and down-dip continuity of the mineralized system, particularly in the northern feeder zone.

The intersection of 12m @ 3.1% Li2O represents a notably high-grade zone that could positively impact future resource calculations.

Management Commentary

David Richards, Liontown's Managing Director, stated:

"The latest drilling has extended the high-grade mineralisation along strike to the north-west while also confirming the down-dip continuity of the thick feeder we encountered in drilling earlier this year."

Next Steps & Catalysts

A Pre-Feasibility Study, including an initial Ore Reserve estimate, is scheduled for completion in Q4 2019. Additional drilling beyond the planned 15,000m program will be required to fully delineate the deposit's potential, estimated to take 2-4 months.

The company plans to transition immediately into a Definitive Feasibility Study following the PFS completion, incorporating an updated Mineral Resource Estimate.

Commodity Outlook

Lithium continues to be a critical battery metal for the growing electric vehicle and energy storage markets. The project's location in Western Australia positions it well to supply the growing demand from Asian battery manufacturers.

Conclusion

The latest results from Kathleen Valley demonstrate significant potential to substantially increase the current resource base of 74.9Mt. With mineralization remaining open along strike and at depth, combined with exceptional grades and widths, the project continues to emerge as one of Austalia's most significant lithium-tantalum deposits.

Sources:

Liontown Resources Drill Results Announcement

Additional Figures:

ASX

Australia

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Nov 19, 2024