Today, Liontown Resources Ltd [ASX:LTR] announced work has begun on an updated Mineral Resource estimate for its Kathleen Valley Lithium Tantalum Project in Western Australia.
When markets opened today, Liontown Resources’ share price shot up 4.76% following the release of the update, but has since soured. At time of writing, shares are trading 8.57% lower to $0.096 apiece.
However, some positive news for LTR shareholders is that the expansion drilling program is almost finished, with the last assays set for the third week of June this year.
Sustained high grade lithium results too help Liontown shares
Despite seeing a dip in shares after LTR’s update on the mineral resource today. The ongoing resource expansion drilling program at the Tantalum Project is continuing to produce outstanding results.
According to today’s announcement, the results showed ‘several new wide, high-grade lithium intercepts’ that were ‘consistent with previous results’.
‘Thick, high-grade lithium mineralisation has now been intersected over a strike length of 1,000m at Kathleen Valley, with the mineralised trend open to the north-west and at depth.’
This is in addition to the most recent assays, showing the potential to considerably increase the maiden Mineral Resource estimate.
Meanwhile, Optiro Pty Ltd, independent resource consultants, are working on an updated MRE for early July 2019.
The company is also expecting results from its Buldania drilling in mid-May.
Liontown Resources Share Price Update
While the results of from today’s update might seem a little disheartening and jargon-filled for some. Investors should keep in mind that the Liontown’s share price has been picking up dramatically since May.
And considering today’s results are on target with previous findings, it’s not a bad outcome for the company.
Investors should also be mindful that the stock markets have been in the red before the weekend, therefore today’s dip shouldn’t be much of a surprise.
With spectators believing Liontown Resources is a stock greatly undervalued, shareholders will have to remain patient for LTR’s BD results.
For Money Morning
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