The Liontown Resources Limited (ASX: LTR) share price has climbed in early trade today after the company announced a major update on its lithium-tantalum project in Western Australia.
The Liontown share price is trading up 4.4% at 47.5 cents at the time of writing..
What was announced this morning
The lithium miner says the next stage is now set on its 100% owned Kathleen Valley Lithium-Tantalum Project, and it will begin to conduct a definitive feasibility study (DFS).
To conduct this study, the company will engage several credentialed consultants including Lycopodium Minerals for process engineering and Snowden Mining for mine engineering. Knight Piésold will take care of tailings and hydrogeological engineering, MBS Environmental for environmental work, and ALS Metallurgy for metallurgical testing.
Liontown also reported that it has completed further geotechnical and water exploration drills to acquire data required to complete the DFS.
This geotechnical drilling was made up of six diamond core holes totaling 1,312m, and was designed to provide rock quality data for the proposed underground portals.
Data obtained so far from the holes have indicated good conditions for underground mining, and are consistent with previous drilling conducted at the pre-feasibility study (PFS) stage.
The assay data from these holes will be used to upgrade its mineral assets category – from Estimate to the Indicated category. This will subsequently be moved to the Reserves category after the completion of the DFS.
Liontown advised that further metallurgical test work on approximately 3 tonnes of material will also be conducted. This is done in order to provide the DFS with data on variability, grind size optimisation and comminution.
About the Kathleen Valley project
The Kathleen Valley Lithium-Tantalum Project is 100% owned by Liontown, and located in the north eastern goldfields of Western Australia, approximately 400km north of Kalgoorlie.
The mine is strategically located with well-established transport and energy infrastructure in place.
The company acquired the project in 2017. So far, it has drilled 461 RC and diamond core holes for a total of 89,066m, with the aim of producing lithium hydroxide or lithium sulphate.
About the Liontown share price
The Liontown share price is one of the strong performers in 2020, rising by 278%.
The lithium mining company was among the best performers in the All Ordinaries (ASX: XAO) during 2020.
The share price has continued its upward trend in 2021, increasing by 9.5% so far this year.
Liontown commands a market cap of $822 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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