KATHLEEN VALLEY RESOURCE UPGRADE DELIVERS WORLD CLASS LITHIUM PROJECT
- The updated Mineral Resource Estimate (“MRE”) for Kathleen Valley has delivered a world-class Resource of 74.9 Mt @ 1.3% Li2O and 140 ppm Ta2O5, for 970 kt of contained Li2O – this is a 353% increase in tonnes on the September, 2018 initial MRE of 21.2 Mt @ 1.37% Li2O.
- The Project is located over granted mining leases in a well serviced mining district of Western Australia, the dominant producer of spodumene concentrates in the Western World.
- Kathleen Valley is highly ranked globally in terms of tonnage, grade and contained lithium; it is also one of the largest Resources in terms of contained Li2O that is either not currently supporting an operation or being developed.
- The deposit compares very favourably with regards to size and/or grade to deposits of current Australian mining operations, including (ranked on contained Li2O):
– Mt Cattlin, Galaxy Resources – 16.7 Mt @ 1.28% Li2O, 210 kt Li2O,
– Bald Hill, Alliance Mineral Assets – 26.5 Mt @ 1.00% Li2O, 270 kt Li2O,
– Pilgangoora, Altura Mining – 50.5 Mt @ 1.01% Li2O, 510 kt Li2O),
– Kathleen Valley – Liontown – 74.9 Mt @ 1.3% Li2O, 970 kt Li2O,
– Mt Marion, Mineral Resources/Jianxi – 71.3 Mt @ 1.37% Li2O, 980 kt Li2O,
– Wodgina, Mineral Resources/Albemarle – 236.9 Mt @ 1.20% Li2O, 2,820 kt Li2O,
– Pilgangoora, Pilbara Resources – 226 Mt @ 1.30% Li2O, 2,870 kt Li2O; and,
– Greenbushes, GAM – 120.6 Mt @ 2.4% Li2O, 2,890 kt Li2O.
- Mineralisation, which outcrops and is fresh from surface, is open along strike and down dip, and thus there is the potential for expansions with further drilling.
- Importantly, preliminary metallurgical test work undertaken to date has produced potentially saleable concentrates with grades of up to 6.2% Li2O, with this work, including optimisation test work, ongoing – metallurgy is a key factor in the success or otherwise of spodumene operations, and the ability to produce a +6% Li2O premium concentrate has a significant effect on the revenue of any potential operation.
- Activities are now concentrated on an ongoing Pre-Feasibility Study (“PFS”), which will incorporate the recent results, and is due for completion by the end of 2019 – this should see continuing positive news flow over coming months.
- The success of the lithium strategy has seen Liontown’s market capitalisation increase ~12-fold from ~A$14 million in early 2017 to A$161 million.
- In summary, our view is that the results of work to date confirm Kathleen Valley as a world class hard rock lithium
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