Name of the Project                                    
Kathleen Valley lithium/tantalum project.

Location
North-east Goldfields of Western Australia.

Project Owner/s
Lithium developer Liontown Resources and Hancock Prospecting.

Project Description
A definitive feasibility study (DFS) has confirmed the potential to develop a state-of-the-art, second-generation lithium/tantalum mining and processing operation.

The DFS optimises the mine schedule, process plant design and forecast sales pricing to enhance the technical and financial viability of a standalone, long-life, four-million-tonne-a-year operation.

The project has an ore reserve of 68.5-million tonnes grading 1.34% lithium oxide and 120 parts per million tantalum pentoxide, underpinning an initial estimated 23-year mine life, based on the updated mining schedule.

Building on the October 2020 prefeasibility study (PFS), the DFS base production has been increased from two-million tonnes a year to 2.5-million tonnes a year, producing about 500 000 t/y of spodumene concentrate, with a four-million-tonne-a-year expansion planned in Year 6 to deliver about 700 000 t/y spodumene concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a real 8% discount rate, of A$4.2-billion and an internal rate of return of 57%, with a payback of 2.3 years.

Capital Expenditure
Capital costs for the project are now estimated at A$951-million, up from the previous estimate of A$895-million.

Planned Start/End Date
Kathleen Valley achieved first production in July 2024 and successfully loaded and dispatched its inaugural shipment of spodumene concentrate in September 2024.

Latest Developments
Liontown Resources has successfully loaded and dispatched its inaugural shipment of spodumene concentrate. The shipment of 11 855 wet metric tonnes (wmt), enroute to China for an existing offtake customer, marks the start of generating revenue from Kathleen Valley.

In addition, Liontown has allocated production to sell in the spot market, with an initial sale of 10 000 t of spodumene concentrate at $802 a dry metric tonne to a Singapore-based trader. 

The shipment is scheduled for early in the fourth quarter.

Concentrate stockpiles continue to accumulate between site and the port, with more than 28 000 wmt of concentrate produced to date. 

Key Contracts, Suppliers and Consultants
ZOOID (environmental, social and governance); Optiro (geology and mineral resources estimate); Snowden Mining Industry Consultants (mine optimisation, planning, design and scheduling); ALS Metallurgy (process testwork); Lycopodium Minerals (process and infrastructure design, capital and operating expenditure); Knight Piésold (tailings and hydrogeology); MBS Environmental (environmental studies); Peter O’Bryan and Associates (geomechanical engineering); Metso-Outotec (design, fabrication and delivery of a semiautogenous grinding mill); Lycopodium Minerals (engineering, procurement and construction management); Zenith Energy (hybrid power station – design, build, own, operate and maintain); and GR Engineering Services (EPC).

Contact Details for Project Information
Liontown Resources, tel +6 8 6186 4600 or email info@ltresources.com.au.