The Tim Goyder-chaired company on Friday announced it had successfully fired the first blast at the Mt Mann open pit. The blast area mostly contained waste rock which will be used as bulk fill for construction of the run-of-mine pad or stockpile area.
Liontown said it marked a “significant milestone” in the development of the project, which has been squeezed by the tight jobs market and soaring labour costs.
The WA group last month disclosed that the budget for Kathleen Valley, 680km north-east of Perth, had leapt an extraordinary 64 per cent to $895 million from the $545m estimated in June last year when the project was given the go-ahead
The cost blowout was also driven by changes to the development, with Liontown planning a 60 per cent bigger accommodation camp.
Liontown in a statement to the ASX on Friday said “strong lithium market conditions” provide a potential opportunity to monetise material not previously expected to be processed as a direct shipping ore product, delivering early revenue during the pre and post-commissioning phase at Kathleen Valley.
First production is on schedule for the middle of next year.
The company said the commencement of open pit mining would also generate material for construction of a tailings storage facility, potential direct shipping ore and a stockpile of mill feed to facilitate the startup commisioning and ramp-up of the process plant.
“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,” Liontown chief executive Tony Ottaviano said.
“Achieving this milestone ahead of schedule is a testament to the hard work and dedication of the Liontown and Iron Mining Contracting teams.
“We have every confidence in their ability to deliver results and look forward to partnering with them to bring our Kathleen Valley lithium project to life.”
