Liontown Resources Limited (ASX: LTR) has reported further promising results from the ongoing resource expansion drilling programme at its 100%-owned Kathleen Valley Lithium-Tantalum Project near Leinster in WA.
The company’s Managing Director, David Richards, said the latest assay results have confirmed the northern strike extension and down-dip continuity of the mineralised system at Kathleen Valley.
Mr Richards said the current drilling programme is designed to test for a resource extension Exploration Target of 25 – 50Mt @ 1.2 – 1.5% Li2O, which was defined based on testing for extensions of the current Mineral Resource Estimate from the limits of previous drill data to a vertical depth of ~500m below surface. This Exploration Target is in addition the current 74.9Mt MRE.
The Kathleen Valley mineralised system, which has now been defined over a minimum strike length of 1.4km and to depth of 400m below surface, remains open to the north-west and down-dip and further drilling, in addition to the originally planned 15,000m programme, will be required to delineate its extents prior to preparing an updated MRE.
A review is currently in progress to determine the amount of additional drilling required. This drilling will take into account ongoing results and is estimated to take another 2-4 months to complete.
In addition to the ongoing drilling program, a Pre-Feasibility Study (PFS), which will include an initial Ore Reserve estimate based on the current MRE of 74.9Mt, is scheduled for completion in Q4 2019.
Mr Richards said Liontown envisages transitioning into a Definitive Feasibility Study (DFS) immediately following the PFS and will incorporate the results of latest drilling to prepare an updated MRE. This updated MRE will include both open pit and underground resources which are anticipated to provide the best outcome for the DFS.
Since drilling re-commenced in late August 2019, six new RC holes have been drilled, four previous RC holes have been extended and eleven new diamond core holes have been drilled for a total of 6,359m. Six of the diamond core holes have been drilled for geotechnical purposes.
This brings the total amount of drilling completed by Liontown at Kathleen Valley to 323 holes for 51,309m, comprising 270 RC holes for 45,853m and 53 diamond core holes for 8,456m. The total includes 32 RC holes which have been extended following receipt of results along strike that indicated the potential for deeper mineralisation.
Mr Richards said the latest resource extension drilling results provided clear evidence of the substantial resource upside at Kathleen Valley.
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,” he said.
“We now know that additional drilling will be required over and above the current 15,000m drilling programme to fully delineate the potential of this high-quality lithium-tantalum resource.
“In the meantime, shareholders can look forward to the results of a Pre-Feasibility Study, including a maiden Ore Reserve, later this quarter. Results from the current drilling will underpin a major resource upgrade next year that will, in turn, form the basis of the Definitive Feasibility Study to be undertaken in 2020.”