Liontown shares tumble as it abandons Tanzania project

24th November 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The share price of junior Liontown Resources dropped by nearly 31% on Monday on news that the company had opted out of the Ibaga copper/zinc project, in Tanzania.

Liontown had previously entered into two option agreements giving the company the right to acquire 100% of the Ibaga project.

However, Liontown said on Monday that a decision was taken to terminate the agreements following disappointing assay results from recent reverse circulation drilling beneath surface exposures of massive sulphide horizons, which had recorded high-grade copper and zinc results from rock chip sampling.

The explorer noted that while the results from the drilling confirmed primary sulphide mineralisation continued at depth, poor sub-surface continuity of the lode meant the potential for an economic base metal deposit was limited.

Liontown shares were trading at a low of 0.9c a share, down from Friday's closing price of 0.13c a share.

Edited by Creamer Media Reporter

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