JOHANNESBURG (miningweekly.com) – Lithium-focused Liontown Resources will sell 11 of 15 mining leases at its Kathleen Valley project, in Western Australia, to focus on priority lithium targets in its 2018 drilling programme.
Seven of the mining leases will be sold to gold company Draig Resources for one-million shares and A$25 000 in cash.
The balance will be returned to Ramelius Resources in accordance with the terms of a 2016 agreement under which Liontown bought the lithium and related metal rights for Kathleen Valley from Ramelius.
Since acquiring the project, Liontown has defined extensive spodumene-bearing pegmatite swarms. Initial drilling intersected wide zones of lithium mineralisation of up to 58 m at 1.2% lithium oxide. Further drilling is planned for the first quarter of 2018.
The sale of the noncore tenements will increase Liontown’s cash and investments to A$5.5-million, which the company says will position it well to rapidly progress its lithium projects.