Liontown Resources is diving into Olympio Metals’ Mulwarrie project. Pic via Getty Images.
Liontown to formally test the waters at Olympio’s Mulwarrie project
Mining
share
- Liontown is proceeding with a Phase 1 farm-in at Mulwarrie to earn up to 51%
- Soil sampling results show several lithium anomalies and high-grade gold
- Mulwarrie is adjacent to the Davyhurst project, where Wesfarmers purchased 65% of its lithium rights for $45m
Special Report: Liontown Resources has elected to proceed with the Stage 1 farm-in over Olympio Metals’ Mulwarrie lithium project after completing a soil sampling program that produced several lithium anomalies and returned huge gold grades of up to 19.3g/t.
The news comes after Wesfarmers (ASX:WES) recently inked a deal worth $45m for the lithium rights at Ora Banda Mining’s (ASX:OBM) Davyhurst project, adjacent to Olympio Metals’ (ASX:OLY) Mulwarrie lithium tenements in WA’s Eastern Goldfields mining district.
Lithium exploration and development is rapidly increasingly by the day in WA’s Eastern Goldfields region, which is already home to several operational mines including Mt Marion, Mt Cattlin and Bald Hill.
Mulwarrie’s potential
As a condition to proceed to farm-in at Mulwarrie, Liontown Resources (ASX:LTR) collected 1,201 soil samples across both the Mulline and Mulwarrie prospects where lithium mineralisation has been identified at projects to the north and south.
Results showed several anomalous lithium trends in the north-west of E30/511 and E30/512 and “spectacular” gold grades of up to 19.3g/t in the south-east of E30/511 – spurring LTR to pull the trigger on Stage 1 of the farm-in deal.
Farm-in terms
LTR will now earn a 51% interest in Mulwarrie by spending $400,000 on exploration over 12 months. Once completed, OLY can option to form a JV for the project.
If OLY chooses not to, LTR has the option to earn in a further 39% by spending $1m on additional exploration within three years as part of Stage 2 of the farm-in, while still leaving OLY exposure to proceeds of the project.
OLY MD Sean Delaney says the company is pleased that LTR has decided to progress the farm-in agreement following the return of promising results from the soil sampling program.
“OLY still retains significant exposure to any discovery success, as the company has the ability to contribute to funding and remain at 49% once the Stage 1 farm in is completed,” he said.
“Its hard to get access to exploration ground in this part of WA right now with the recent high value deals by Wesfarmers and Ora Banda Mining, Mineral Resources and Pantoro demonstrating the attractiveness of holding exploration tenements that are prospective for lithium”
This article was developed in collaboration with Olympio Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
