Liontown Resources' (ASX:LTR) Kathleen Valley Lithium Project is well on track for its first production by mid-2024, as the company achieved significant milestones during the June quarter. The project is witnessing a surge in mining and construction activities, with key developments in the process plant and power station infrastructure build.
Safety remains a top priority for Liontown, with no Lost-time Injuries (LTI) recorded during the period. The workforce logged a total of 326,000 site hours, marking an increase from 211,000 in the previous quarter, reflecting the ramp-up of construction and mining operations.
Highlights of the June Quarter:
- Awarded Full Open Pit Mining Services Contract to Iron Mine Contracting Pty Ltd for the next three years.
- Total Material Movement (TMM) for the quarter rose to 1.55M bulk cubic metres (BCM), supporting stockpiling of ore for production and waste material for the Run-of-Mine (ROM) pad and Tailings Storage Facility (TSF) construction.
- Direct Shipping Ore (DSO) material was also stockpiled, with additional sampling and sorting test work completed. The technical and commercial evaluation of DSO strategy is progressing as planned, with the execution decision expected in the September quarter.
- Evaluation of competitive bids from tier 1 contractors for the Underground Mining Services package advanced ahead of the anticipated contract award in August.
- Substantial progress made on process plant construction, with more than 50 percent of concrete poured by the end of June.
- Arrival of critical long-lead items, including SAG mill, magnetic separators, pumps, concentrate filters, and fine ore bin, all within the scheduled timeframe.
- The Accommodation Village is now 85 percent complete, with 600 rooms commissioned and ready for use, and more than 450 currently occupied.
- Significant progress on the Hybrid Power Station, with the completion of solar farm earthworks, delivery of 21,000 solar panels for installation, and the commencement of construction of the wind turbine access road.
- Erection of a 90-meter communications mast by Dilji Corporation, a Tjiwarl contracting business, providing 4GBps aggregate tie-in link to tie into Telstra’s fibre optic network.
- Advancements in prospective commercial opportunities, including an agreement to farm into Olympio Metals’ Mulline and Mulwarrie Lithium Projects.
Financials:
Cash at bank as of 30 June was $305.4 million, with $118.8 million drawn down from the $300 million Ford finance facility in the quarter. $181.2 million remains undrawn under the Ford Facility as of 30 June.
Liontown's Managing Director, Tony Ottaviano, expressed his satisfaction with the project's progress, attributing it to the strong support of contractors and suppliers. He stated, "With the ongoing support of our contractors and suppliers, Liontown made excellent progress on the development of the Kathleen Valley Lithium Project. Open pit mining is ramping up to build stockpiles ahead of production, the process plant and hybrid power station are taking shape, and the accommodation village is almost complete with 600 rooms now commissioned and ready for use. It’s hard to imagine that we had six caravans onsite last October and to see the speed of progress and quality of the work being done by our team and partners is truly amazing."
Reflecting on the successful erection of Kathleen Valley's 90m communications mast by Tjiwarl business Dilji Corporation, Ottaviano emphasized the company's commitment to engaging with the Tjiwarl, the Traditional Owners of the land on which Kathleen Valley is located. He said, "This is an early example of our commitment to engaging the Tjiwarl, the Traditional Owners of the land on which Kathleen Valley is located, in both the development of the Project and Traditional Owner businesses. More will follow."
Looking ahead, Ottaviano expressed confidence in Liontown's continued progress, stating, "We have now formally confirmed Iron Mine Contracting as our open pit mining contractor for the three-year life of surface mining, and we look forward to appointing a suitably qualified and experienced contractor as our underground mining contractor for Kathleen Valley shortly. I am proud of the culture we are developing at Liontown as we grow our company, especially the intense focus on doing the job safely. The efforts of the workforce to date have ensured we remain on schedule as we rapidly move this tier-one asset towards commercial production."
