Liontown Resources (ASX: LTR) has entered three agreements to acquire a high grade copper-zinc Project in northern Tanzania.
Rock chip sampling at the Ibaga project recorded very high copper and zinc values with associated silver and gold.
Better results included 39.2% copper with 126g/t silver; 34.6% copper with 128g/t silver; 12.6% copper with 11.3% zinc and 136g/t silver, and 45.8% zinc with 0.54% copper and 24g/t silver.
These high metal values are hosted by massive to semi-massive sulphide horizons up to 4 metres thick, with mineralisation exposed in pits indicating minimum strike length of 300 metres, with strike extensions obscured by thin soil cover.
Notably, no previous drilling or other modern exploration has been undertaken at the project.
Liontown has completed due diligence for two of the agreements, with finalisation of the third pending.
The three agreements are with separate and independent parties who hold a Total of 34 tenements which together form the Ibaga, Ibaga North and Ibaga West contiguous tenements.
Total combined consideration payments, assuming all are exercised, involve initial fees of US$230,000 payable after satisfaction of all conditions, and annual payments of US$125,000 on the first anniversary, reducing to $15,000 by the 5th year.
Various royalties are to paid to the vendors, ranging up to a 1% gross royalty in addition to the statutory government royalty of 4%.
Lion will pay a maximum of US$2.7 million in total acquisition and royalty costs, with option periods ranging between two and five years.
Following acquisition of geophysical and geochemical data, Liontown intends to undertake a reverse circulation drill program to test for immediate strike and depth extensions of the mineralisation visible in the open pits pits.
Recently, Liontown also expanded its Tanzanian gold operations, after securing an option to acquire a 100% interest in a high grade gold project in the Lake Victoria Goldfield of northern Tanzania.
The company is presently valued at around $14 million.
Highlight intercepts from this project include 12 metres at 3.9 grams per tonne gold from 32 metres, 6 metres at 6g/t gold from 26 metres and 8 metres at 4.3g/t gold from 10 metres.
There has been no drilling on the property since the 1990s, and the mineralised trend remains open in all directions.
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