Liontown Resources (ASX: LTR) shares jumped 25.46% today on high volume, an indicator of ongoing support for the company which is focused on accelerating drilling for gold in East Africa.
More than 13.2 million Liontown shares traded hands today, with the company closing at A$0.069.
The company’s share price performance is even more impressive when viewed over the past three months, rising 119% since early January.
Liontown is advancing its interests in East Africa, where it has an emerging gold portfolio in the world class Lake Victoria Goldfield, in Tanzania.
The granite and greenstone terrain in the Lake Victoria region is similar to that found in the Eastern Goldfields of Western Australia, and the region also hosts African Barrick Gold PLC's (LON: ABG) Bulyanhulu mine.
Exploration is progressing at the Jubilee Reef joint venture, in which Liontown has the right to earn a 75% interest.
Although Liontown’s main exploration focus within the project is on the gold potential it is believed that the tenements also hold significant potential for iron ore, a commodity which has previously attracted little attention in Tanzania despite the abundance of banded iron formations.
Best intersections from a reverse circulation drilling program include:
- 31 metres at 33.9% iron from surface;
- 43 metres at 32% iron from surface; and
- 31 metres at 31% iron from surface.
A further 10,000 metres of drilling at Jubilee Reef is planned for the June quarter of 2012, expected to commence in April.
Liontown also has other projects in Tanzania and one in Australia. The company has free-carried exposure to exploration in the Mt Windsor joint venture project in North Queensland, with exploration fully funded by partner Ramelius Resources.
Mt Windsor covers a large land position of more than 3,500 square kilometres, and is located within a well endowed gold province.
$1 million capital raising
Earlier this month, Liontown announced a share placement to raise A$1.14 million to advance exploration at Jubilee.
The capital raising comprised the placement of 30 million shares at A$0.038 per share, which was a 9% premium to the company’s last closing price prior to the agreement.
Arranged by Bell Potter Securities, the placement was made pursuant to the 15% allowance under the ASX listing Rules.