The Liontown Resources Ltd (ASX: LTR) share price is on course to end the week on a positive note.
In early trade, the lithium developer's shares are up 2.5% to $1.61.
Why is the Liontown share price rising?
Investors have been bidding the Liontown share price higher today following the release of an update on the Kathleen Valley lithium project in Western Australia.
According to the release, the company's mining services provider has commenced open pit mining operations at Kathleen Valley with the first blast successfully fired.
Management notes that the first blast at the Mt Mann open pit marks a significant milestone in the development of Kathleen Valley.
This blast area contains predominantly waste rock which will be used as bulk fill for construction of the Run of Mine (ROM) pad. The small quantity of ore contained within the blast will ultimately be used to sheet the ROM pad once constructed.
All in all, this leaves the company placed to commence first production on schedule in mid-2024.
But Liontown expects to generate revenue before then. Management has also reconfirmed that it is progressing a Direct Shipping Ore (DSO) opportunity with sample composites currently being prepared for potential customers. This DSO will allow Liontown to monetise material not previously expected to be processed and take advantage of strong lithium market conditions.
'A significant milestone'
Liontown's managing director and CEO, Tony Ottaviano, was delighted with the progress the company is making. He said:
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.
Achieving this milestone ahead of schedule is a testament to the hard work and dedication of the Liontown and Iron Mining Contracting teams. We are excited to be working with the experienced team at Iron Mine Contracting. 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.
