Liontown Resources (ASX: LTR) has encountered lithium grades of up to 2.6% from its latest batch of assay results for its Kathleen Valley ground in Western Australia, reporting the company is on track to produce a maiden lithium resource in the September 2018 financial quarter.
The company is currently completing resource definition drilling on-site, 680km north-east of Perth, and has tipped it will wrap up the campaign in the next month.
Liontown said its Kathleen’s Corner mineralisation remained open in all directions, over a continuous strike length of at least 800m, with the latest results reported to market today confirming extensions to the north, south and west.
Highlight assays from those results include 16 metres of 1.6% lithium oxide from a depth of 71m, including 2m at 2.4% lithium from 74m and 3m at 2.0% lithium from 78m.
Other highlights, for the Mt Mann prospect, flagged in this morning’s release included 15m of 1.9% lithium from 88m, including 10m at 2.1% lithium from 92m and another 28m of 1.4% lithium from 109m, including 14m at 2.2% lithium from 109m.
Liontown reported high-grade mineralisation at the second prospect was continuous over a 600m strike length and remained open at depth.
The company said its latest assays confirmed both continuity and strike extensions of high-grade mineralisation for the valley project and continued to support the potential for a significant spodumene-related lithium deposit.
Earlier this month, the company described Kathleen Valley as a significant emerging lithium discovery after striking multiple high-grade pegmatites at the WA project.
Highlights from the 7 May 2018 report included 4m graded at 1.5% lithium from 43m, including 3m at 1.8% lithium from 44m.
Liontown managing director David Richards today said the company was making excellent progress at Kathleen Valley, which he described as growing in stature as a high-quality lithium discovery in a premier mining jurisdiction.
“Resource drilling is now well underway and should continue for at least the next month or so, paving the way for a maiden resource estimate next quarter,” he said.
“Given its grade, scale and location, Kathleen Valley already has many of the key attributes required to become an exciting development and growth opportunity for Liontown in the lithium industry, and we are focused on unlocking this value as quickly as possible for our shareholders.”
Independent mining consultant group Optiro is helping Liontown optimise its resource drill-out ahead of completing the JORC-compliant resource.
Liontown said it expected to wrap up resource definition drilling on a 50m by 50m pattern by the end of June, but may extend its exploration campaign, depending on the limits of the Kathleen’s Corner pegmatite swarm.
The company has also started a six-to-eight-hole diamond coring (HQ) program to provide geological and geotechnical data and metallurgical test work samples. It reported today its early observations confirmed competent ground conditions and coarse spodumene crystals.
Liontown added 16.7% by late morning, pulling back from ground lost yesterday to sit at A$0.028.