Liontown Resources continued the ramp up of its flagship Kathleen Valley lithium project in Western Australia during the June 2024 quarter, with first production imminent.
Construction of the Kathleen Valley processing plant stands at approximately 99 per cent complete, with the project over 95 per cent complete on an earned value basis.
Liontown continues to progress underground mining activities at Kathleen Valley, with 1596 total development metres recorded at the end of June quarter. This brings Kathleen Valley’s overall total development metres to around 3500 metres since underground mining commenced in November 2023.
Open pit mining at the Kathleen’s Corner deposit also progressed, with 1.3 million bulk cubic metres mined, contributing to 216,000 tonnes of clean ore being stockpiled ahead of initial production.
In a milestone achievement for Liontown, the miner crushed first ore at Kathleen Valley in May, with first production on track for mid-2024.
“Following another huge effort from our project team and contractors, we finished the June quarter on the cusp of completing the development required for first production at Kathleen Valley,” Liontown managing director Tony Ottaviano said.
“A major milestone reached post-quarter was the signing of the $US250 million ($381 million) convertible note agreement with LG Energy Solution.
“The agreement, which came with a commitment to supply LG Energy Solution with additional offtake and an undertaking to work together on a downstream refinery, provides the balance sheet capacity to fund the Kathleen Valley ramp-up to 3Mtpa (three million tonnes per annum) as well as early underground works to preserve the 4Mtpa expansion option on a 2027 timeframe.
“In the meantime, we remain focused on achieving first production, ramp-up and solidifying Liontown’s position as a major new producer and supplier of lithium raw materials.”
Liontown closed the quarter with $122.9 million in cash balance.
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