Today, Liontown Resources Ltd [ASX:LTR] confirmed drilling at the Kathleen Valley Lithium-Tantalum Project in Western Australia.
At time of writing, Liontown Resources’ share price is trading at $0.10, up 21.43%.
Liontown’s Kathleen Valley project
The drilling saw the best intercept recorded at Kathleen Valley, with an intercept of 90m grading 1.3% Li2o from a 209m down-hole.
This latest data is encouraging for Liontown, and its increased Exploration Target, as stated in its ASX announcement on 29 April 2019.
Liontown managing director, David Richards commented on the results, saying:
‘With the resource drilling program now in its final phases, we have been able to generate some exceptional results from within what has clearly emerged as feeder zone for the Kathleen Valley lithium deposit.
‘The combination of this, high-grade core to the deposit below the current conceptual open pit, together with the flat-lying geometry of the shallower portions of the pegmatite swarm, could potentially drive a significantly larger and deeper open pit that may present a very attractive mining proposition.’
Liontown resources’ share price outlook 2019
It’s not unusual for a lithium stock such has Liontown to see such a big jump in share price after such an exciting announcement.
This isn’t necessarily an indication that Liontown resources’ share price will keep going up, but it is encouraging news for shareholders.
Investors should be aware that it is unclear whether further exploration will result in the estimation of an increased mineral.
For Money Morning
PS: Free investor report reveals the highest potential growth sectors for 2019 and beyond. Download now to find out more (for free).