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, 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
Openpit operations started in July 2024, with underground production already under way since April 2025. Full underground output is expected by September 2026.

Latest Developments
Liontown's first online auction for spodumene concentrate from its flagship Kathleen Valley project has fetched a price far above prevailing spot levels.

Prices for lithium raw material spodumene climbed to $1 075/t on November 20, the highest since June 2024, having recovered by almost half from June's four-year lows, but still well below late 2022 peaks above $6 000, the company has said.

The auction result is the latest indicator to suggest that a long-awaited recovery in lithium demand is taking root after the chairperson of major Chinese producer Ganfeng Lithium Group forecast demand growth of 30% or up to 40% for the battery metal in 2026, igniting stocks in the sector.

Kathleen Valley produced its first concentrate in July 2024 and runs on about 80% renewable energy. Liontown has offtake agreements with automakers, including Tesla and Ford Motor Corporation to buy lithium for electric vehicles.

Liontown has sold 10 000 metric tons of lithium concentrate for delivery in January 2026 at $1 254/t through the German digital commodities platform Metalshub, drawing more than 50 qualified buyers from nine countries.

The company plans further such online auctions in 2026 and beyond, though it will not disclose details of these routine future auctions, it has indicated.

In August, the Australian government invested A$50-million in Liontown to support its ramp-up and transition to underground mining at the project.

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, or EPC, 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.