Liontown Resources’ Share Price Surges on First Hole at Moora Project
Excitement surrounding Liontown Resources Ltd’s [ASX:LTR] share price has exploded today thanks to results from the first reverse circulation (RC) drill hole at the Moora Project.
At time of writing the LTR share price is up 8.5 cents or 19.32% to trade at 52.5 cents per share.
Earlier today, LTR set an all-time share price high of 55 cents after its latest results from Moora revealed broad gold intersects.
Although LTR bills itself as a lithium play, it has recently turned its focus to gold and copper — with lithium prices still down 50% over the past five years.
Potential builds at Moora
Last month I asked the question: ‘is LTR on the verge of a major copper-gold discovery?’
At the time, we took a look at what makes the Moora Project attractive and what it would take to uncover a resource the size of its neighbour Chalice Mining Ltd’s [ASX:CHN] world-class Julimar discovery.
Although we are still a way off from getting even a vague idea of what lays underground at Moora, LTR is slowly revealing some tantalising potential.
Today, the explorer released the first RC drill hole, which included:
- 44m at 1.6 grams of gold per tonne (g/t) from 200–244m, including:
- 20m at 3.2g/t from 208–228m and 4m at 10.1g/t from 220–224m
The intersection is interpreted to be along strike and down-dip of a previously reported shallow air-core intercept of 12 metres at 1.4g/t.
Commenting on the results, Managing Director David Richards said:
‘Intersecting a significant zone of high-grade, primary gold mineralisation in our very first RC hole is a very important development which validates our exploration approach. “It’s obviously still early days, but the data suggests the potential for a large mineralising system at Angepena that will require intensive drill testing.
‘The fact that the shallow anomalism we have been seeing in auger and air-core drilling is directly related to primary bedrock mineralisation is a vital breakthrough that confirms that we have an emerging discovery opportunity at Moora.’
LTR’s latest results indicate the potential for a 900-metre-plus long zone of bedrock mineralisation at the newly named Angepena Zone, which remains open in all directions.
Angepena is located within the south-western part of Mt Yule magnetic anomaly, which is 7 kilometres long and up to 2.5 kilometres wide.
Previously, drilling has defined a number of other mineralised zones including a 2-kilometre-plus long and up to 150 metres wide copper-gold northern zone with intersections of 10 metres at 1.9% copper and 12 metres at 0.5g/t gold.
A further 11 assays from RC holes are pending from this zone.
Assays are also pending for 145 infill and first-pass air-core holes.
With such a large amount of data still outstanding, LTR said they would wait to see what this information reveals before planning the next stage of exploration.
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For The Daily Reckoning Australia