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.
For Money Morning
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