Is Liontown Resources on the Verge of a Major Copper-Gold Discovery?
The share price of Liontown Resource Ltd [ASX:LTR] is up 5.81%, or 2.5 cents, today thanks to new results from their Moora Project in WA.
At the time of writing LTR shares are trading at 45.5 cents per share, closing in on setting a fresh 52-week high as the explorer announces ‘significant’ copper-gold discoveries at Moora.
Source: Trading View
While the mineralisation gradings in today’s results are not significant in themselves, the significance of the discoveries is that they are located a in the same geological terrain as one of Australia’s most exciting projects.
It’s nice to have good neighbours
Today LTD released new assays from its partially completed maiden air-core drilling program at its 100%-owned Moora Project.
The explorer said the assays received have defined at least three mineralised areas comparable with the Mt Yule anomaly.
- 12m at 1.37 grams of gold per tonne (g/t) from surface, including 4m at 2.92g/t from 4m
- 37m at 0.25g/t from surface and 13m at 0.22% copper from 24m
These results follow on from initial results reported last month:
- 10m at 1.9% copper from 32m, including 4m at 2.5% copper from 36m
- 12m at 0.5g/t gold from 12m including 4m at 1.1g/t gold from 20m
Like I said, the grades here are nothing particularly significant.
What is significant is the geology in which they are located.
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LTR say results are consistent with the 7km long Mt Yule magnetic anomaly, interpreted to be indicative of a large mafic/ultramafic intrusion.
Source: Liontown Resources
LTR managing director, David Richards, said the explorer’s drilling campaign at Moora was off to a very strong start, with the initial results demonstrating potential for a large-scale discovery.
‘Intersecting potentially ore grade intersections in shallow air-core drilling — which is effectively geochemical sampling of the bedrock — is an outstanding result for this stage of exploration, particularly as they lie within three clearly defined mineralised trends which remain open.’
There is something lacking
Although LTR believe their project shares a similar geology to that of Julimar, there is something missing from today’s results that would otherwise expel doubt:
The presence of platinum-group-elements (PGE).
Julimar is shaping up to be a huge PGE-nickel-copper-gold project.
So far we have only seen copper and gold at Moora.
LTR said drilling will resume in mid-February 2021 and is designed to provide initial bedrock data beneath gold+PGE+nickel+copper anomalies defined by auger sampling completed last year.
Meaning we’ll have to wait for at least a few more weeks before getting a closer look at Moora’s resemblance to Julimar.
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For The Daily Reckoning Australia