Liontown Resources’ Share Price Rises a Whopping 55%

By ,

Little-known Liontown Resources Ltd [ASX:LTR] has soared higher today after the company found further evidence of lithium mineralisation at their Kathleen Valley lithium-tantalum project, based in WA.

At time of writing, Liontown is valued at 7.6 cents a share, after lifting an impressive 55.1%.

Substance over style

Liontown has so far had an encouraging first half of 2019, with a scoping study in January confirming the potential to begin a ‘commercially robust mining operation

Today’s announcement has shown further evidence of thick, high-grade lithium zones as part of their expanded dual drilling program.

As managing director David Richards explains, the program (which is expected to continue until the end of May) is designed to:

Increase both the size of, and confidence in, the existing MRE (Mineral Resource Estimate) by drilling immediately along strike, down-dip and previous intersections.

Essentially, the latest drilling points toward sections of rock at the site are merging at significant depths to form one large pegmatite body. This has revealed high quality intercepts which could also help extend the life of the mine — assuming the content is successfully converted into a compliant mineral resource.

The latest data now supports an increased resource target of 19-31Mt @ 1.2–1.5% lithium oxide.

Once completed, results from the full drill program will go towards preparing a fully upgraded Mineral Resource Estimate (MRE) on future feasibility. Further feasibility studies are scheduled for Q1 2020.

Quality over quantity

Even with today’s positive results, Liontown has become one of the year’s best movers, with the share price rocketing since early April.

Liontown’s primary goal now is to continue fast-tracking both the expanded drilling initiative and metallurgical test work before releasing the (with any luck) updated MRE in the middle of the year.


Ryan Clarkson-Ledward,
For Money Morning

PS: What’s the driving force behind this new ‘green energy’ alternative? If Liontown Resources has sparked your interest, we recommend downloading our free report on the lithium battery boom to learn more. Download here.

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor…

Liontown Shares: Binding Ford Offtake Signed

Liontown Resources [ASX:LTR] shares were flat this morning, after announcements regarding a third Ford offtake and final investment decision (FID) for LTR’s Kathleen Valley Project.

Sayona [ASX:SYA] Shares Rise On New Lithium Discoveries at Moblan

Junior Lithium producer Sayona Mining [ASX:SYA] announced new lithium discoveries at its Moblan lithium project, ‘strengthening’ its potential.

Pilbara Minerals Pre-Auction Bid Reflects ‘Strong Demand’

Australian lithium producer Pilbara Minerals [ASX:PLS] secured a pre-auction bid of over US$7,000/dry metric tonne.

Liontown Shares Down as Binding Tesla Offtake Agreement Signed (ASX:LTR)

Liontown Resources [ASX:LTR] has formalised a binding offtake agreement with leading electric vehicle automaker Tesla.

Liontown Shares Up on LG Offtake [ASX:LTR]

Liontown Resources [ASX:LTR] was up 2.45%, trading at $1.46 a share this morning.

Core Lithium Share Price Soars on Tesla Lithium Deal

Core Lithium [ASX:CXO] shares are up by almost 16% today after signing a lithium supply deal with electric carmaker Tesla Inc [NASDAQ:TSLA].