from the ASX...Strong progress with the Definitive Feasibility Study (DFS), with mine planning and metallurgical test work defining several key criteria with the potential to deliver improved economic returns, including:
Mine planning and metallurgical test work programs have defined several key criteria with the potential to improve future operability and economic returns for the Kathleen Valley Lithium-Tantalum Project. These include:
Liontown Resources Limited is pleased to announce the appointment of international mining executive Tony Ottaviano as Chief Executive Officer and Managing Director, effective from on or about 1 May 2021.
KATHLEEN VALLEY LITHIUM PROJECT (Western Australia: 100%)
Work well-advanced on the Definitive Feasibility Study (DFS), which builds on the highly encouraging studies completed in Q4 2020.
GeotechnicaI/in-fill drilling confirms the potential to upgrade Inferred parts of the Mineral Resource Estimate (MRE), with several high-grade intersections received, including:
KVGT0013
9.9m @ 1.9% Li2O from 135.9m, including:
30.8m @ 1.6% Li2O from 260.6m, including:
KVDD0076
9.2m @1.6% Li2O from 189.2m, including:
13.4m @ 1.7% Li2O from 269.6m, including:
KVDD0077
14m @ 1.8% Li2O from 186m, including:
39.7m @ 1.6% Li2O from 280.4m, including:
(True Widths: 70-85% of down-hole Widths.)
Definitive Feasibility Study (DFS) follows on from highly encouraging studies completed in Q4 2020 (see ASX releases dated 9th and 22nd October 2020) which support a stand-alone 2Mtpa mining operation with a 40-year mine life.
Key consultants including Lycopodium Minerals Pty Ltd, Snowden Mining Industry Consultants Pty Ltd, Knight Piésold Pty Ltd, MBS Environmental and ALS Metallurgy Pty Ltd appointed to ensure a high-quality DFS.
Water exploration drilling has identified a number of prospective follow-up targets for full bore development and testing.
Comminution Study completed which has identified the potential for further process circuit optimisation.
Geotechnical/in-fill drilling confirms the potential to upgrade Inferred parts of the Mineral Resource Estimate (MRE), with several high-grade intersections received, including:
KVGT0013
9.9m @ 1.9% Li2O from 135.9m, including:
30.8m @ 1.6% Li2O from 260.6m, including:
KVDD0076
9.2m @1.6% Li2O from 189.2m, including:
13.4m @ 1.7% Li2O from 269.6m, including:
KVDD0077
14m @ 1.8% Li2O from 186m, including:
39.7m @ 1.6% Li2O from 280.4m, including:
KATHLEEN VALLEY LITHIUM PROJECT (Western Australia:100%)
Updated Pre-Feasibility Study (PFS) confirms the technical and financial viability of a standalone 2Mtpa mining and processing operation based on an updated Ore Reserve of 71Mt @ 1.4% Li2O and 130ppm Ta2O5.
Ore Reserve underpins a 40-year mine life with average production of ~350ktpa 6% Li2O spodumene concentrate (SC6.0) and 430tpa of 30% Ta5O5 concentrate.
Key financial outcomes of the PFS include:
A Downstream Scoping Study (DSS) leveraging off the PFS demonstrates the significant financial upside of an integrated mining, processing and refining operation based on the production of lithium hydroxide (LHM) or lithium sulphate (LSM) using SC6.0 from Kathleen Valley as feedstock.
Liontown Resources has commenced a Definitive Feasibility Study (DFS) focused on SC6.0 production that will review a number of opportunities to improve the Project’s financial metrics, including additional test work to further develop the DSS, given the compelling economic upside.
CORPORATE
$12.5m capital raising announced subsequent to end of Quarter.
Funds will ensure the continued development of Liontown’s flagship Kathleen Valley Project, including the completion of a DFS, and initial drill testing of the Moore Project.
Substantially increased Mineral Resource (MRE), Ore Reserve and revised mining plan, combined with an enhanced process flowsheet drives significant improvement in project economics; Updated Pre-Feasibility Study (PFS) showcases the strong potential to develop a state-of-the-art, second-generation lithium-tantalum mining and processing operation at the 100%-owned Kathleen Valley Project in WA’s Eastern Goldfields; Building on the Mineral Resource announced in May 2020, the PFS confirms the outstanding technical and financial viability of a standalone, long-life initial 2Mtpa operation.
KATHLEEN VALLEY LITHIUM PROJECT (Western Australia: 100%) Measured, Indicated and Inferred Mineral Resource Estimate (MRE) now stands at: 156Mt @ 1.4% Li2O and 130ppm Ta2O5 (reported above a cut-off grade of 0.55% Li2O). Containing 2.1Mt of Li2O or 5.3Mt of lithium carbonate equivalent (LCE) and 44Mlbs of Ta2O5. The updated MRE represents a 108% increase in tonnes and 119% increase in contained lithium from the July 2019 MRE of 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5, which underpinned the positive Pre-Feasibility Study (PFS) released in December 2019. It also represents a 636% increase in tonnes and contained lithium from the maiden MRE of 21.2Mt @ 1.4% Li2O and 170ppm Ta2O5 released in September 2018. 80% of the Mineral Resource is classified as Measured or Indicated. An updated PFS, based on the latest MRE, is well advanced and scheduled for completion in Q4 2020. The updated PFS will incorporate a number of key criteria with the potential to significantly improve future operability and economic returns for the Kathleen Valley Project, including: Early scheduling of high-grade portions of the MRE through underground and optimised open pit mining; Adopting a simpler Whole-of—Ore Flotation (WOF) process flowsheet; and Inclusion of a tantalum (Ta205) concentration circuit.
Liontown Resources Limited is pleased to advise of the satisfaction of the conditions to the $1.5 million contingent consideration payment pursuant to the Sale Agreement Liontown entered into with Core Lithium Limited for the sale of the Bynoe Lithium Project in the Northern Territory.
A review of mining options and recent metallurgical test work have defined a number of key criteria with the potential to significantly improve future operability and economic returns for the Kathleen Valley Project. These include: Early scheduling of high-grade portions of the Mineral Resource through underground and optimised open pit mining; Adopting a simpler Whole of Ore Flotation (WOF) process flowsheet; and Inclusion of a tantalum (Ta2O5) concentration circuit. These criteria will be incorporated into an updated Pre-Feasibility Study (PFS) that is due for completion in Q4 2020. The updated PFS will be based on the latest Mineral Resource Estimate (MRE) of 156Mt @ 1.4% Li2O and 130ppm Ta2O5 (see ASX release dated 11th May 2020) which confirms Kathleen Valley as a Tier-1, hard-rock lithium-tantalum resource.
