iontown Resources Limited (“Liontown” or the “Company”) has made significant progress on its battery metals strategy since we first covered the Company in early 2017. This has included an almost complete refresh and rationalisation of projects, with the Kathleen Valley Lithium Project (“Kathleen Valley”) in Western Australia being the only “survivor”, and one of two lithium discoveries by Liontown.
A key advance at Kathleen Valley has been the release of an initial Mineral Resource Estimate (“MRE”) for Kathleen Valley, with this presenting a high grade Resource of 21.2Mt @ 1.37% Li2O (with significant upside). This compares very favourably with (including having higher grades than) Resources at some current operations, including Tawana’s 50% owned Bald Hill mine in southern Western Australia (26.5Mt @ 0.97% Li2O) and Galaxy’s Mt Cattlin operation (which had a pre-mining Resource of 18.2Mt @ 1.08% Li2O, and with current Resources of 9.7Mt @ 1.35% Li2O excluding low grade stockpiles). Metallurgical test work is now underway on samples from Kathleen Valley, with the results to be incorporated into a Scoping Study due for completion in 4Q18.