Open pit mining operations commence at Australia's new lithium mine

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(Kitco News) - Australia's Liontown Resources (ASX: LTR), an emerging battery minerals producer, on Thursday announced the commencement of open pit mining operations at the Kathleen Valley lithium project in Western Australia.

The company said that the first blast at the Mt Mann open pit marks a significant milestone in the development of Kathleen Valley.

"The on-schedule commencement of open pit mining will generate material for construction of the Run-of-Mine pad and Tailings Storage Facility, potential Direct Shipping Ore and a stockpile of mill feed to facilitate the start-up commissioning, and ramp up of the process plant, with first production on schedule for mid-2024," Liontown said in a press release.

The company added that strong lithium market conditions provide a potential opportunity to monetize material not previously expected to be processed as a Direct Shipping Ore (DSO) product, delivering early revenue during the pre- and post-commissioning phase at Kathleen Valley.

Liontown noted it is currently progressing this DSO opportunity with sample composites currently being prepared for potential customers. Additionally, it is expected that material mined in the near-term will be used for bulk test work.

Managing Director and CEO Tony Ottaviano commented, "Completion of the first blast and commencement of open pit mining operations at Kathleen Valley is a significant milestone for Liontown, signifying our transition from explorer to mining operator."

Kathleen Valley is a spodumene deposit located on the western edge of the Norseman-Wiluna Greenstone Belt within the Archaean Yilgarn Craton of Western Australia.

The project has a current Mineral Resource Estimate of 156Mt at 1.4% Li2O and 130ppm Ta2O5 (as of April 2021). An Ore Reserve of 68.5Mt at 1.34% Li2O and 120ppm Ta2O5 (as of November 2021) supports an expected mine life of ~23 years.

Kathleen Valley operations have been designed for an initial 2.5Mtpa, producing ~500ktpa of spodumene concentrate with a 4Mtpa expansion planned in Year 6, to deliver ~700ktpa spodumene concentrate.

Liontown Resources is an emerging battery minerals producer. The company currently controls two major lithium deposits in Western Australia and aims to expand its portfolio through exploration, partnerships and acquisitions.