Growth and Upside from Lithium and Gold Exploration Updated Investor Presentation

Transcription

1 ASX : LTR ABN ASX ANNOUNCEMENT Growth and Upside from Lithium and Gold Exploration Updated Investor Presentation Liontown Resources Limited (ASX: LTR) is pleased to attach a copy of its updated investor presentation Growth and Upside from Lithium and Gold Exploration. The updated presentation includes information (Slides 14 and 15) on the Company s Lake Percy Lithium Project which is located approximately 60km east of Kidman Resources Earl Grey lithium discovery. A review of historic nickel exploration data from Lake Percy indicates a number of very large pegmatites with true widths >100m hosted in a geological setting similar to the Earl Grey pegmatite. Liontown is highly encouraged by the initial data review given the occurrence of known pegmatite-hosted lithium mineralisation approximately 20km to the south of Lake Percy in the same greenstone belt. There has been no previous exploration for lithium at Lake Percy. Other highlights of the presentation include: The Company s plans to commence follow-up drilling in late September at the Bynoe Project, where initial drilling intersected thick spodumene-mineralised zones; An update on initial exploration activities at the Kathleen Valley Lithium Project, where validation of historic high grade lithium and tantalum values has been undertaken; and An overview of the Company s Jubilee Reef gold project in Tanzania, East Africa, where a review of the existing 390,000oz JORC gold resource is underway in conjunction with new exploration targets. DAVID RICHARDS Managing Director 21 September 2016

2 Growth and upside from lithium & gold exploration Emerging Australian lithium discovery at Bynoe in the NT next phase of drilling imminent Large-scale pegmatite systems being evaluated at Kathleen Valley and Lake Percy, WA ASX: LTR September 2016

3 Disclaimer Competent Person s Statement and Disclaimer: The Information in this report that relates to Exploration Results for the Bynoe Project is based on and fairly represents information and supporting documentation prepared by Mr David Richards, who is a Competent Person and a member of the Australasian Institute of Geoscientists (AIG). Mr Richards is a full-time employee of the company. Information has largely been extracted from the ASX announcement entitled thick zones of strong lithium mineralisation intersected in maiden drilling program at Bynoe Project, NT released on 26 th July 2016 and which is available on The Information in this report that relates to the Exploration Results for the Kathleen Valley Project is extracted from the ASX announcements entitled Liontown enters into agreement for the acquisition of highly prospective WA lithium-tantalum project from Ramelius Resources and Lithium-tantalum potential at Kathleen Valley significantly expanded released on the 4 th August 2016 and 6 th September 2016 respectively both of which are available on The Information in this report that relates to Exploration Results for the Lake Percy Project is based on and fairly represents information and supporting documentation prepared by Mr David Richards, who is a Competent Person and a member of the Australasian Institute of Geoscientists (AIG). Mr Richards is a fulltime employee of the company. The information in this report which relates to Mineral Resources for the Jubilee Reef Project is is extracted from the ASX announcement entitled Liontown Announces Maiden 390,000oz Mineral Resource for the Jubilee Reef Gold Project in Tanzania, East Africa released on 30 November 2015 and which is available on The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement. This report contains forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. 2

4 Company Snapshot Three emerging Australian lithium projects Bynoe (NT), Kathleen Valley (WA) and Lake Percy (WA): Thick, >1% Li 2 O, spodumene-mineralised zones intersected in initial drilling at Bynoe (<50km from Darwin port) follow up drilling imminent. Initial exploration activities underway at Kathleen Valley Lithium Project (WA) - large-scale pegmatite system with outstanding surface grades Very large (>100m true thickness) pegmatites defined at Lake Percy in lithium prospective Lake Johnson Greenstone Belt Significant strategic position in Tanzania s +50Moz Lake Victoria Goldfield Jubilee Reef Project Review of existing 390,000oz Inferred Mineral resource and new exploration targets underway Substantial upside and growth potential from focussed exploration programs planned between now and the end of the year Strongly leveraged to exploration success in lithium and gold market cap of just ~$12M 3

5 Corporate Overview Corporate Details ASX Code Shares on Issue Market Capitalisation LTR ~700M (1:5 rights issue in progress) $12M (at ~1.7cps) Major Shareholder Tim Goyder 27% Top 20 Shareholders 64% Board of Directors TIM GOYDER Chairman +30 years experience, MD Chalice Gold, Chairman Uranium Equities DAVID RICHARDS Managing Director +30 years experience, former Managing Director Glengarry Resources CRAIG WILLIAMS Non-Executive Director +30 years experience, co-founder and former CEO Equinox Minerals ANTHONY CIPRIANO Non-Executive Director 28 years experience, former partner at Deloitte 4

6 Key Projects Bynoe Lithium Project (NT, Australia) Previous Greenbushes-owned tin-tantalum mining centre Extensive pegmatite field located <50km from Darwin Thick widths of >1% Li 2 O (spodumene-related) mineralisation intersected in maiden drilling program 5 Jubilee Reef Gold Project (Tanzania) Located in +50Moz Lake Victoria Goldfield, near major deposits such as Bulyanhulu, Geita and Nyanzaga (Orecorp). ~390,000oz Inferred Mineral resource with significant growth potential Multiple promising targets along 7.5km long gold mineralized trend Kathleen Valley (WA, Australia) Multiple outcropping spodumene-bearing pegmatites High grade lithium (up to 3.9% Li 2 O) and tantalum (up to 725ppm Ta 2 O 5 ) values at surface No previous drill testing potential to delineate very large system Lake Percy (WA, Australia) Very large pegmatites true thicknesses >100m Lithium occurrences recorded in belt but no previous exploration for the commodity Strategic location in southern Yilgarn lithium province - includes Greenbushes, Mt Caitlin, Mt Marion and Kidman discovery

7 Bynoe Lithium Project A New Lithium Discovery 88km 2 tenement package Covers central part of historic Bynoe mining field Good infrastructure <50km from Darwin Port Maiden drilling program completed July 2016 confirmed thick zones of spodumene-related lithium mineralisation Li 2 O values of >1% intersected at 6 of the 10 initial targets (Appendix 1), with best results including: 1.0% Li 2 O from 93m (LBRC014) 1.1% Li 2 O from 70m (LBRC015) All mineralised zones open at depth and along strike More than 50 pegmatite targets yet to be tested Follow-up drilling scheduled for September 2016 Bynoe: imminent drilling and news flow >1% Li 2 O SANDRAS 6

8 Bynoe Lithium Project Sandras Prospect Defined over 300m length, up to 40m thick - open along strike Part of 4km long pegmatite trend Good widths open at depth and along strike 7

9 Bynoe Lithium Project Outstanding Upside Pegmatite-Drilled Pegmatite-Undrilled Talwest 30m thick pegmatite with Li 2 O values up to 2.2% >1% Li 2 O Sandras Multiple untested pegmatites; significant exploration upside 8

10 Bynoe Lithium Project Next Steps Results from maiden drilling program provide proof of concept for widespread spodumene-related lithium mineralisation at Bynoe >4,000m follow-up RC drill program to commence September 2016 Key objective is to extend existing >1% Li 2 O intersections >60 pegmatites documented on LTR tenure Review of broader project area has identified other pegmatites that warrant testing drilling scheduled for mid October 2016 Potential to delineate a maiden JORC resource in the near term Strategic land position with multiple lithium prospective pegmatites 9

11 Key Projects Bynoe Lithium Project (NT, Australia) Previous Greenbushes-owned tin-tantalum mining centre Extensive pegmatite field located <50km from Darwin Thick widths of >1% Li 2 O (spodumene-related) mineralisation intersected in maiden drilling program 10 Jubilee Reef Gold Project (Tanzania) Located in +50Moz Lake Victoria Goldfield, near major deposits such as Bulyanhulu, Geita and Nyanzaga (Orecorp). ~390,000oz Inferred Mineral resource with significant growth potential Multiple promising targets along 7.5km long gold mineralized trend Kathleen Valley (WA, Australia) Multiple outcropping spodumene-bearing pegmatites High grade lithium (up to 3.9% Li 2 O) and tantalum (up to 725ppm Ta 2 O 5 ) values at surface No previous drill testing potential to delineate very large system Lake Percy (WA, Australia) Very large pegmatites true thicknesses >100m Lithium occurrences recorded in belt but no previous exploration for the commodity Strategic location in southern Yilgarn lithium province - includes Greenbushes, Mt Caitlin, Mt Marion and Kidman discovery

12 Kathleen Valley Lithium-Tantalum Project Agreement to acquire 100% of rare metal rights from Ramelius Resources for 25M LTR shares 77km 2 tenement package located 680km NE of Perth, WA good infrastructure Large spodumene-bearing pegmatite swarm defined by previous mappers Previous exploration focused on gold and nickel with lithium potential untested Multiple high grade lithium and tantalum results from rock chip sampling immediate drill targets Drilling to commence as soon as approvals have been secured Target definition work completed approvals process in progress 11

13 Kathleen Valley Lithium-Tantalum Project Mt Mann Pegmatite part of 3.5x1km spodumene bearing pegmatite swarm Multiple high grade lithium and tantalum values recorded from rock chip sampling (see Appendix 2) 3.5% Li 2 O and 158ppm Ta 2 O 5 2.6% Li 2 O and 249ppm Ta 2 O 5 2.5% Li 2 O and 103ppm Ta 2 O 5 2.5% Li 2 O and 286ppm Ta 2 O 5 2.8% Li 2 O and 214ppm Ta 2 O 5 3.9% Li 2 O and 381ppm Ta 2 O 5 Pegmatite trends >1km long and up to 30m wide mapped at surface open along strike No previous drill testing Granted mining lease 12

14 Kathleen Valley Lithium-Tantalum Project Good size pegmatites with fresh spodumene at surface undrilled, on granted MLs and with existing infrastructure 13

15 Lake Percy Lithium-Tantalum Project Pegmatites up to 550m wide and 3km long defined by previous Ni work No previous lithium exploration Preliminary sampling has recorded anomalous lithium and pathfinder elements (Ta, Nb, Sn) Lithium occurrences reported 20km south in same belt at Maggie Hays Close to proposed Kidman infrastructure Right to earn 70% through in-ground expenditure Strategic land position in heart of southern Yilgarn lithium province 14

16 Lake Percy Lithium-Tantalum Project Historic drilling indicates large pegmatites with true thicknesses exceeding 100m 15

17 Key Projects Bynoe Lithium Project (NT, Australia) Previous Greenbushes-owned tin-tantalum mining centre Extensive pegmatite field located <50km from Darwin Thick widths of >1% Li 2 O (spodumene-related) mineralisation intersected in maiden drilling program 16 Jubilee Reef Gold Project (Tanzania) Located in +50Moz Lake Victoria Goldfield, near major deposits such as Bulyanhulu, Geita and Nyanzaga (Orecorp). ~390,000oz Inferred Mineral resource with significant growth potential Multiple promising targets along 7.5km long gold mineralized trend Kathleen Valley (WA, Australia) Multiple outcropping spodumene-bearing pegmatites High grade lithium (up to 3.9% Li 2 O) and tantalum (up to 493ppm Ta 2 O 5 ) values at surface No previous drill testing potential to delineate very large system Lake Percy (WA, Australia) Very large pegmatites true thicknesses >100m Lithium occurrences recorded in belt but no previous exploration for the commodity Strategic location in southern Yilgarn lithium province - includes Greenbushes, Mt Caitlin, Mt Marion and Kidman discovery

18 Lake Victoria Goldfield A World-Class Exploration Address Granite/greenstone terrain similar to Eastern Goldfields of Western Australia +50Moz gold endowment World-class (>10Moz) gold deposits 17Moz Bulyanhulu, 12.5Moz Geita deposits nearby Established infrastructure Underexplored LTR has a high quality tenement portfolio and emerging gold system in one of the world s premier gold provinces

19 Jubilee Reef Inferred Resources (2012 JORC) Simba deposit Inferred Resource: 1.4g/t gold for ~320,000oz Panapendesa deposit Inferred Resource: 2g/t gold for ~70,000oz Simba 3D view of mineralised lodes (looking NNE) Total JORC 2012 Resources Inferred Resource: 1.4g/t gold for ~390,000oz 0.7g/t gold lower cut Panapendesa 3D view of mineralised lodes (looking N) 18

20 Simba Large Granite-hosted Gold System Drill hole plan superimposed on magnetic (tilt) image System defined over 1km strike open to NE with potential for multiple, parallel lodes Drill results include: 4.7g/t Au 2.9g/t Au 2.6g/t Au 3.2g/t Au Multiple mineralised zones Large scale, shallow system Exploration upside Open along strike and at depth Parallel lodes Undrilled prospects 19

21 Jubilee Reef Next Steps 20 Targeting extensions to existing resources at Simba and Panapendesa Targeting undrilled prospects including high grade (>3g/t Au) trench intercepts at Tembo

22 Key Reasons to Invest in Liontown High quality, emerging lithium and gold assets in Tier-1 jurisdictions Potential to establish a significant lithium resource at Bynoe <50km from a major port plus a potential game-changer at Kathleen Valley Imminent news-flow from Bynoe drilling Emerging gold project in Tanzania with established resources and outstanding exploration potential Highly leveraged to two of the strongest performing commodities Active exploration, strong news-flow, multiple share price catalysts Strongly leveraged to exploration success in lithium and gold market cap of just ~$12M 21

23 Thank you Contacts David Richards (Managing Director) Tim Goyder (Chairman) info@ltresources.com.au ASX: LTR

24 Why Lithium? Supply shortfall due to lithium batteries Already seen in actual price performance with high prices forecast to continue An increasingly critical metal Commodity Price (Lithium Carbonate 99% China) Source Goldman Sachs (April 2016) 8 Mar 2015 Jan 2016 We estimate demand to more than triple from ~170kmt in 2015 to ~530kmt in 2025, led by lithium ion battery demand growth Goldman Sachs April 25 th Amid a surge in demand for rechargeable batteries, companies are scrambling for supplies of lithium www. (The ltresources. Economist, com. au 14 January 2016)

25 Appendix 1: Bynoe RC Drilling Hole ID Prospect East North RL Dip Azimuth Depth (m) Significant (>0.5%) Lithium Results * From (m) To (m) Interval (m) Grade (%) LBRC No significant assays BP33 LBRC incl. 1.6% from 56m and 2.2% from 64m LBRC003 Booths South No significant assays LBRC Lees LBRC LBRC006 Booths South LBRC LBRC Hang Gong LBRC No significant assays LBRC LBRC011 RR West incl. 1.9% from 76m LBRC No significant assays LBRC Sandras LBRC incl. 1.9% from 93m and 1.7% from 133m LBRC LBRC016 Martins LBRC017 Turners No significant assays LBRC Bilatos LBRC LBRC020 Talamia West incl. 2.0% from 112m LBRC021 Martins No significant assays * All 2m composite samples Estimated true widths to be confirmed by further drilling BP33 33% of down hole widths Lees 100% of down hole width Booths South 75% of down hole widths RR West 75% of down hole widths Sandras 50% of down ole widths 24

26 Appendix 2: Kathleen Valley Rock Chip Sampling Sample_ID East North Li2O(%) Ta2O5 (ppm) Sample_ID East North Li2O(%) Ta2O5 (ppm) _01a KVR _01b KVR _ KVR _ KVR _ KVR _14A KVR _14B KVR _14C KVR _ KVR _ KVR _ KVR _ KVR _ KVR _34A _34B KVTGR _34C KVTGR _34D KVTGR VG KVTGR VG KVTGR VGCFS KVTGR KVR KVTGR KVR KVTGR KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR PEG KVR