Is Liontown Resources on the Verge of a Major Copper-Gold Discovery?

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.

Highlights include:

  • 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.

And what is more intriguing is that the project shares the same geological terrain as Chalice Mining Ltd’s [ASX:CHN] world-class Julimar discovery located ~95km to the south.

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.

In the meantime, make sure you subscribe to The Daily Reckoning Australia, if you want keep up with all the action from Australia’s gold miners and explorers. It’s also a great way to stay up to date with the latest investment trends and opportunities — and the best part is it’s FREE. Click here to learn more.

Kind regards,

Lachlann Tierney,
For The Daily Reckoning Australia