The Kathleen Valley Lithium Project is a Tier-1 battery metals asset with excellent grade and scale in one of world’s best mining districts. First production is expected in Q2, 2024.
Kathleen Valley is located in an established mining region about 60 km north of Leinster, and 680km north-east of Perth, Western Australia.
The site is readily accessible by sealed highways which connect with mineral exporting ports at Geraldton and Esperance. Other local infrastructure includes a high voltage power line, a natural gas pipeline and sealed airstrips capable of taking 100 seat jets.
The Project has a current Mineral Resource Estimate of 156Mt at 1.4% Li2O and 130ppm Ta2O5 (as of April 2021). Over 80% of the Mineral Resource is classified as Measured or Indicated.
An Ore Reserve of 68.5Mt at 1.34% Li2O and 120ppm Ta2O5 (as of November 2021) supports an expected mine life of ~23 years.
The operations have been designed for an initial 2.5Mtpa, producing ~500ktpa of spodumene concentrate with a 4Mtpa expansion planned in Year 6, to deliver ~700ktpa spodumene concentrate.
Mining will predominately be underground, allowing direct access to higher grade mineralisation while minimising waste and the environmental footprint of the project.
Mined ore will be processed through a Whole of Ore Flotation circuit which will provide an estimated recovery rate of 78% across the mine life and an estimated site recovery for tantalum concentrate of 42%.
A Definitive Feasibility Study (DFS) was released in November 2021. The study outlined a Tier-1 global lithium project with exceptionally strong financial and technical merits, combined with a class-leading sustainability and ESG framework that is being fully integrated with the development.
In June 2022, the Board of Liontown made the Final Investment Decision (FID) for the development of Kathleen Valley, clearing the way for the commencement of Project execution.
Liontown has executed binding offtake agreements with Tier-1, globally significant customers in the electric vehicle battery supply chain.
The Company has executed agreements with South Korean-based LG Energy Solution (LGES) and car manufacturers Tesla and Ford, for the sale of spodumene concentrate from Kathleen Valley.
The agreements, expected to commence in 2024, are for five years , with an option to extend the LGES and Ford contract for a further five years by mutual agreement.
Liontown's offtake commitments of up to 450,000 DMT per annum represent approximately 90% of Kathleen Valley’s start-up SC6.0 production capacity of ~500ktpa.