Liontown Resources Limited (ASX:LTR) has received positive scoping study outcomes demonstrating potential for a viable standalone lithium mining and processing operation at Kathleen Valley Lithium-Tantalum Project in WA.
The results were based upon engagement with various, highly credentialed Western Australian consultants using an extensive database of local capital and operating cost estimates.
As a result, the company has approved further studies and metallurgical test work to support a feasibility study targeted for completion in 2020.
“Very pleased with results”
Liontown Resources managing director David Richards said: “We are very pleased with the results of the scoping study.
“This has confirmed the potential to establish a significant new standalone lithium mining and processing operation capable of producing a spodumene concentrate for global and local markets.
360,000 tonnes annual concentrate production
“The scoping study outlines a base case 2 million tonnes/annum development with potential to produce approximately 360,000 tonnes of spodumene concentrate over an initial 8 to 9-year mine life.
“This is a similar scale of operation to those which have recently been successfully commissioned in the Pilbara region of WA by Pilbara Minerals and Altura Mining.
“Importantly using conservative forecast product pricing assumptions, the study estimates competitive life of mine cash operating costs of around US$376 per tonne FOB of spodumene concentrate and potentially US$308 per tonne net of tantalum credits.
Potential to grow resource base
“Given these impressive results and the project’s location in a well-established mining district close to high-quality infrastructure, as well as the strong potential to continue growing the resource base, the board of Liontown has approved the commencement of further studies and a new drilling program to expand the existing mineral resource.
Commitment to move forward
“We have clear commitment to move the project forward as quickly as we can with a view to delivering a full definitive study by early 2020 and then moving into a financing and construction phase.
“That will position Kathleen Valley to take advantage of what is widely anticipated to be a rapid expansion of the global lithium-ion supply chain next decade as the electrification of the world’s transport fleet really begins to gather momentum.”
Next steps
Discussions with potential strategic offtake partners and consideration of financing alternative have begun with a new drilling program aimed at expanding the current mineral resource estimate starting in February 2019.
Further feasibility studies will begin in conjunction with advancing several opportunities to enhance financial metrics and to de-risk key elements of the project.
- Jessica Cummins