For the third week in a row, Liontown Resources Ltd [ASX:LTR] has posted prolific gains, with a 202% rise over the past year. At time of writing, their share price stands at 99 cents, down slightly by 1%.
‘Substance over hype’
After yesterday’s announcement of a record intercept 90m grading 1.3% of lithium oxide at the Kathleen Valley project, today’s investor presentation was a chance to look realistically at the company’s future prospects — and it’s fair to say the company is optimistic.
Liontown are set on becoming the Australian miner of the future, starting with the transformation of Kathleen Valley into WA’s newest lithium mine.
As they point out in their presentation, they are also committed to advancing their second discovery, the Buldania project in Kalgoorlie, into a maiden resource estimate.
The preliminary test work at Kathleen Valley has so far confirmed saleable spodumene concentrate, with further feasibility tests still ongoing. The scoping study point towards a ‘robust’ NPV analysis of $762 million going forward.
The priority for Liontown now will be to refine metallurgic production at Kathleen before approaching other ‘potential strategic partners’.
On the other side of the state, management has given high priority to the Anna prospect at Buldania, which contains multiple undrilled spodumene pegmatites. According to Liontown, there hasn’t been any exploration of this area before now.
Drill testing is scheduled for Q2 2019.
Is it still too early to celebrate?
Given the continued good news coming out of the company, it’s not surprising to see jumps in the share price in rapid succession.
The latest news brings the company ever closer to its target of 31 million tonnes of 1.5% lithium — as we’ve previously detailed.
The updated mineral resource estimate (MRE) study will likely be realised as early as next month.
For Money Morning
PS: If this has piqued your interest, check out our free report: ‘How Lithium Could Potentially Be the Biggest Resource Opportunity in Decades’. Click here to learn more.