Liontown Resources Limited (ASX: LTR) has completed resource definition drilling at its 100%-owned Kathleen Valley Lithium-Tantalum Project in Western Australia and announced plans to postpone a proposed Definitive Feasibility Study (DFS) and instead focus on upgrading its current Pre-feasibility Study (PFS).
Liontown’s most recent drilling follows the announcement of an interim Mineral Resource Estimate (MRE) upgrade of 139Mt @ 1.3% Li2O and 140ppm Ta2O5 which confirmed Kathleen Valley as a Tier-1 hard- rock spodumene-lithium resource.
Managing Director, David Richards, said the latest results continue to demonstrate the continuity of high-grade mineralisation at Kathleen Valley, with the system remaining open both down-dip and along strike to the north-west. An updated MRE will be prepared once all assays are received.
Since drilling re-commenced in late August 2019, 52 new RC holes have been drilled, 11 previous RC holes have been extended and 48 new diamond core holes have been drilled for a total of 39,102m. Twelve of the diamond core holes have been drilled for geotechnical purposes.
The total drilling completed by Liontown at Kathleen Valley since work commenced in 2017 comprises 445 holes for 86,737m, including 355 RC holes for 63,161m and 90 diamond core holes for 23,576m. This total includes 39 RC holes which were extended following the receipt of results along strike that indicated the potential for deeper mineralisation.
Mr Richards said the company believes that the recent substantial increase in the Kathleen Valley MRE has highlighted a number of strategic opportunities to optimise and improve the planned development configuration of the Project compared with that outlined in the December 2019 Pre-Feasibility Study (PFS).
For example, drilling since August 2019 has confirmed significant widths of high-grade mineralisation (>1.5% Li2O) at depth, leading Liontown to investigate the possible underground extraction of portions of the resource that will enable higher grade ore to be fed to the planned processing plant – thereby potentially improving recovery, product quality and operating margins.”
A sighter test work programme has been also initiated, focused on the relationships between grade and recoveries and the recovery of tantalum, which will enable a much more detailed R&D test work program to be pursued during 2020. This will ultimately lead to process flowsheet updates and commensurate changes to the site layout, capital and, importantly, operating cost estimates.
A significant focus of the programmes to be undertaken this year is on plant operability and the ability to produce a premium-quality product that can be marketed accordingly.
Mr Richards said that in light of the impact of COVID-19 together with the potential improvements and enhancements to the Project, Liontown has decided to postpone the Definitive Feasibility Study (DFS) and will instead produce an upgraded PFS that is closely aligned to the Project’s updated MRE. The upgraded PFS will build on the 2019 PFS.
