Liontown Resources pounces on WA-based lithium projects
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Junior explorer Liontown Resources has beefed up its portfolio of battery-related metals projects with two West Australian lithium projects.
Investors welcomed the news, pushing the stock (ASX:LTR) up 15 per cent to 1.5c in morning trade, before cooling to 13c at lunch.
The projects, Buldania and Norcott, lie in the southern part of the Eastern Goldfields in a region known for hosting significant lithium deposits including Mount Marion and Bald Hill.
Earlier explorers found extensive spodumene-bearing pegmatite fields at the projects, according to Liontown.
Pegmatites — rocks formed from lava or magma that often contain rare earth minerals and crystals — are the primary source of lithium.
Liontown bought the rights to explore and mine lithium and related metals at Buldania from Westgold Resources.
Big, undrilled pegmatite fields
Past geological mapping uncovered a big, undrilled spodumene-bearing pegmatite field. Individual pegmatites up to 500m long and 150m wide have been mapped on the surface.
Norcott lies 4km south of Buldania and includes a strike extension of the same lithium-prospective stratigraphy to Buldania.
Liontown is seeking to buy two exploration licences at the project from private company Galahad Resources covering 370 sq km.
While no previous lithium exploration has taken place, reconnaissance exploration recorded multiple pegmatites.
Buldania will be Liontown’s initial focus where it will begin geochemical sampling and further mapping to define targets for initial drill testing expected later this year.
Liontown said it was well positioned to advance both projects after selling its Bynoe lithium project in Northern Territory last month.
Liontown has a market cap of around $13 million.