PERTH (miningweekly.com) – The share price of junior Liontown Resources dropped by nearly 31% on Monday on news that the company had opted out of the Ibaga copper/zinc project, in Tanzania.
Liontown had previously entered into two option agreements giving the company the right to acquire 100% of the Ibaga project.
However, Liontown said on Monday that a decision was taken to terminate the agreements following disappointing assay results from recent reverse circulation drilling beneath surface exposures of massive sulphide horizons, which had recorded high-grade copper and zinc results from rock chip sampling.
The explorer noted that while the results from the drilling confirmed primary sulphide mineralisation continued at depth, poor sub-surface continuity of the lode meant the potential for an economic base metal deposit was limited.
Liontown shares were trading at a low of 0.9c a share, down from Friday's closing price of 0.13c a share.