79e0e100-a9eb-4421-90a7-fec90052b2ae.pdf
ASX : LTR
ABN 39 118 1532 825
ASX ANNOUNCEMENT
Liontown secures lithium-tantalum exploration project in Tanzania, East Africa
Prospective exploration opportunity with high-grade lithium values from recent sampling.
Highlights
Liontown Resources Limited (ASX: LTR) is pleased to advise that it has secured a highly prospective lithium- tantalum exploration project ('the Mohanga Project') in central Tanzania, East Africa, providing an exciting new focus for its exploration team and a growth opportunity in a commodity with a strong market outlook.
The acquisition signals the start of a new phase of diversification for Liontown into the strategic metals sector, complementing its existing gold interests in Tanzania and Australia. Liontown is currently reviewing additional international growth opportunities in the lithium-tantalum sector.
Through a combination of tenement acquisitions and an option deal with a local company, Liontown has acquired a contiguous 177km2 ground package, known as the Mohanga Project, where recent reconnaissance rock chip sampling has recorded high-grade lithium and tantalum values.
Better results from Liontown's recent sampling include:
Sample 132428 2.95% Li2O and 0.12% Ta2O5
Sample 132432 3.79% Li2O and 0.11% Ta2O5
Sample 132436 2.76% Li2O and 0.11% Ta2O5
Sample 132439 5.15% Li2O and 0.07% Ta2O5
(See Appendix 1 for full listing of rock chip samples collected by Liontown)
There has been no drilling or other modern exploration within the Mohanga Project area.
The Mohanga Project is located in central Tanzania approximately 40km NNE of the capital Dodoma and 400km WNW of Dar es Salaam (see Figure 1). Historic mapping has located a number of pegmatite-hosted lithium occurrences, the only reported for the country.
The Project is in the south eastern part of the Archaean Tanzanian Craton where it comprises a WNW-NW trending sequence of metasediments (quartzite, quartz-feldspar schist and graphitic schist), amphibolite schist and quartz-feldspar gneiss intruded by granite (Figure 2). The geological setting is considered analogous to the Greenbushes lithium deposit in southwest Western Australia, the world's largest pegmatite-hosted deposit.
A number of lithium-bearing pegmatites have been recorded by government mapping and early reconnaissance rock chip sampling by Liontown geologists (Appendix 1) has returned multiple significant lithium (>1% Li2O) and tantalum (>0.05% Ta2O5) values (NB not all reported occurrences have been sampled).
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Liontown will undertake geological mapping followed by systematic trenching to define targets for initial drill testing. Access preparation for this work has already commenced.
Land Status
The Mohanga Project comprises three contiguous tenements covering a total combined area of approximately 177km2 (Figure 3). Two of the tenements are held directly by Liontown Resources (Tanzania), with one being a granted prospecting licence (PL10724/2015) and the second being an application (No. 01458) that has been recommended for grant.
The third tenement (PL9067/2013) is subject to an Option Agreement with local company Central Mining Company which gives Liontown the right to acquire 100% of the PL. The main terms of the proposed Option Agreement between Liontown and Central Mining are:
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LTR to make initial cash payments totaling approximately US$30,000;
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4 year option period with annual payments (from first anniversary) of US$15,000;
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Purchase price of US$900,000 (plus 10% CGT) to acquire 100% of PL9067/2013; and
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1%NSR on future production which can be purchased at any stage for US$500,000. Details of the Option Agreement are provided in Appendix 2 (Section 2).
Liontown's Chairman, Mr Tim Goyder, said the acquisition of the Mohanga Project provided the Company with an outstanding early-stage growth opportunity in a commodity that is experiencing a significant level of global attention and investor interest.
'The lithium sector is currently enjoying a strong growth phase, with major analysts and investment banks highlighting a potential supply shortfall over the next 3-5 years as demand for the metal accelerates on the back of rapid forecast growth in the energy storage and lithium-ion battery sectors.'
'We are delighted to have the opportunity to explore such a high potential project which bears geological similarities to the region which hosts the world-class Greenbushes lithium deposit in Western Australia.'
'While there is much work to do to confirm the promising early potential we have seen at this project, the acquisition gives our shareholders immediate exposure to one of most promising growth sectors in the commodities market, and we look forward to commencing ground-based exploration in the near future.'
DAVID RICHARDS
Managing Director 24 November 2015
The Information in this report that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr David Richards, who is a Competent Person and a member of the Australasian Institute of Geoscientists (AIG). Mr Richards is a full-time employee of the company.
Mr Richards has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Richards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
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Figure 1: Tanzania - Regional location plan showing Liontown Projects
Figure 2: Mohanga Project - Geology and better rock chip sample results.
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Figure 3: Mohanga Project - Tenure
APPENDIX 1: Mohanga Project - Liontown Rock Chip Results
Sample ID
|
East
|
North
|
Survey Method
|
Lithology
|
Cs_ppm
|
Li2O_pct
|
Nb_ppm
|
Rb_ppm
|
Ta2O5_ppm
|
132426
|
11407
|
8430
|
GPS
|
Pegmatite
|
4300
|
2.65
|
11.3
|
7390
|
85
|
132427
|
11407
|
8430
|
GPS
|
Pegmatite
|
21.1
|
0.03
|
1.08
|
117.5
|
0.01
|
132428
|
8992
|
14671
|
GPS
|
Pegmatite
|
4600
|
2.95
|
20.6
|
13000
|
1184
|
132429
|
8992
|
14671
|
GPS
|
Pegmatite
|
69.2
|
0.06
|
3.22
|
346
|
0.07
|
132430
|
9001
|
14702
|
GPS
|
Pegmatite
|
6100
|
2.99
|
13.55
|
16400
|
195
|
132431
|
8991
|
14746
|
GPS
|
Pegmatite
|
6500
|
3.44
|
10.7
|
17700
|
281
|
132432
|
4017
|
13544
|
GPS
|
Pegmatite
|
6200
|
3.79
|
9.33
|
23800
|
1062
|
132434
|
1424
|
13022
|
GPS
|
Chert
|
14.55
|
0.01
|
1.61
|
83.1
|
0.05
|
132435
|
7230
|
13677
|
GPS
|
BIF
|
10.6
|
0.01
|
0.55
|
39.4
|
0.01
|
132436
|
8275
|
11690
|
GPS
|
Pegmatite
|
6600
|
2.76
|
30.4
|
36000
|
1148
|
132437
|
8275
|
11690
|
GPS
|
Pegmatite
|
9300
|
2.65
|
45.5
|
37200
|
635
|
132438
|
8275
|
11690
|
GPS
|
Pegmatite
|
2600
|
1.27
|
41.8
|
15300
|
147
|
132439
|
8260
|
11711
|
GPS
|
Pegmatite
|
9400
|
5.15
|
53
|
43300
|
720
|
132440
|
7390
|
10650
|
GPS
|
QV
|
7.47
|
0.00
|
0.3
|
44
|
0.44
|
132441
|
5880
|
11932
|
GPS
|
Pegmatite
|
66.6
|
0.04
|
23.9
|
640
|
14.53
|
132442
|
5885
|
11923
|
GPS
|
Pegmatite
|
5.43
|
0.00
|
18.1
|
342
|
5.79
|
132443
|
5914
|
11852
|
GPS
|
Pegmatite
|
7.07
|
0.01
|
18.3
|
254
|
3.11
|
132444
|
5922
|
11806
|
GPS
|
Pegmatite
|
22.6
|
0.01
|
24.1
|
510
|
7.33
|
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