Liontown Resources (ASX: LTR) has reviewed ten-year-old drill-holes from Intermin Resources‘ (ASX: IRC) exploration at now Liontown’s 100%-owned Toolebuc vanadium prospect, finding significant vanadium mineralisation at the ground 440km west of Townsville in Queensland.
The data, pulled by the state government’s Department of Natural Resources and Mines from a historical statutory report, used 35 aircore holes to help define a mineralised zone over an area of five kilometres by 3km.
The area extends eastwards to Intermin’s (ASX: IRC) 671 million tonne Lilyvale mineral resource which contains 0.35% vanadium at a 0.29% lower cut-off grade.
Liontown managing director David Richards said today the historic Toolebuc grades of more than 0.25% vanadium pentoxide and widths of the mineralisation appeared similar to Lilyvale’s resource.
Among the highlights were four metres at 0.48% vanadium from 15m, including 2m @ 0.63% vanadium from 16m and 7m at 0.35% vanadium from 16m, including 1m @ 0.71% vanadium from 18m.
Liontown will evaluate whether DNRM’s historic Intermin data can be used to define a resource and undertake its own exploration at Toolebuc.
“Liontown will have the historic drill data reviewed by an independent consultant to determine whether it is suitable for estimating a JORC-compliant inferred resource,” he said.
“In addition, Liontown plans to complete additional drilling to confirm the historical results and define the limits of the mineralised zone east of Lilyvale. Wide-spaced aircore drill holes are also planned across untested parts of the Toolebuc formation to define other areas of vanadium mineralisation.”
The company’s land tenure extends over more than 1000 square kilometres and includes extensive areas of outcropping Toolebuc Formation which has not been assessed for vanadium.
The vanadium price has been undergoing a resurgence in recent, with a number of companies such as Aura Energy (ASX: AEE) narrowing their focus to vanadium after initially evaluating their land for uranium prospectivity and Tando Resources (ASX: TNO) stepping into the vanadium space via a project acquisition in South Africa.
The ferro vanadium price added around US$13.20 per kilogram to US$35.20/kg in the 12 months to 31 January 2018.
Liontown securities were up 7.69% to A$0.028 by early afternoon while Intermin shares were unchanged at A$0.21.