Liontown Resources Limited (ASX:LTR) is once again in the spotlight at a time when investors are increasingly shunning the stock market in the wake of the spread of the coronavirus. The trigger behind renewed investor interest in the company is the confirmation of the intersection of high-grade lithium at the company’s flagship Kathleen Valley Lithium Tantalum project.
RC Drilling Operations
Immediate results have confirmed Kathleen Valley as a tier-1 hard rock lithium resource. The confirmation comes hot on the heels on the discovery of 139Mt of 1.3% Li2O. According to the managing director, David Richards, the immediate results demonstrate continued mineralization at the project.
Liontown Resources Limited is currently undertaking a drilling program scheduled for completion in March. The program is designed to test for extensions of high-grade mineralization, consequently, provide fill data.
Since drilling commenced in August of last year, the company has so far managed drill 46 new RC holes. The company has also extended 11 previous RC holes, having also drilled 48 new diamond holes. The total number of holes completed at the Kathleen Valley project stands at 439 holes for 84,453 made up of 349 RC holes.
A move to enhance drilling capacity at the flagship project underscores the outstanding results generated last year. It also affirms the company’s strong focus on delivering a further upgrade at the mineral resource.
“Kathleen Valley’s credentials as a high-quality lithium-tantalum asset with grade scale and other significant competitive advantages in terms of location and infrastructure continue to shine through as we progress development studies and resource drilling,” said Mr. Richards.
Liontown Resources Limited’s objective in 2020 is to undertake various activities that have the potential to enhance pre-feasibility study project economics as well as commence definitive feasibility study. By increasing the size and grade of the Kathleen Valley project, the company should be able to increase its financial returns.
In addition, the junior mining company hopes to achieve the high potential for an even larger ore reserve. Likewise, the ongoing drilling activities should uncover high-grade ore as the company also looks to extract tantalum as the by-product.
Half Year Results
Separately, Liontown Resources Limited has provided an update of its half-year results ended December 31, 2019. During the period, the company had net assets valued at $10.1 million backed by an excess of current assets over current liabilities of $9.9 million.
During the period, Liontown Resources Limited completed a placement, consequently raising $18 million on the issuance of 150 million of fully paid ordinary shares. However, the company plunged into a net loss of $8 million, nearly double a net loss of $4.9 million reported a year earlier. The wider than expected net loss stems from exploration and evaluation expenditures that surged to $6.2 million compared to 3.6 million reported a year earlier.
Liontown Resources Limited ended the December quarter with $11.8 million in cash and cash equivalent. The solid balance sheet leaves the company well-financed to accelerate drilling operations at its flagship project.