SPECTACULAR DRILL RESULTS CONFIRM VERY HIGH LITHIUM ASSAY RESULTS GREATER THAN 4% Li2O AT CARRIERE DE L’ESTE PROSPECT
Highlights
- Results from the final 2 of 6 reconnaissance drill holes at the Carriere de l’Este prospect confirms further widespread, high-grade spodumene lithium mineralisation including 68.0m* @ 2.0% Li2O & 858ppm Sn in hole CD18DD006.
- 90 samples returned values greater than 2% including 5 individual samples grading greater than 4% Li2O with the highest value being from hole CD18DD006 from 181 to 182 metres downhole grading 4.65% Li2O.
- The latest drill holes demonstrate grade continuity both down-dip and along strike at Carriere de l’Este with both holes starting in soil cover again confirming “blind” pegmatite in previously unknown strike extents of the main deposit.
- Results confirm continuity of the Carriere de l’Este pegmatite under alluvial cover and shallow dipping high grade intersections present within wider zones of well mineralised spodumene pegmatite.
- High grade mineralisation from Carriere de l’Este has the potential for future blending with existing Roche Dure mineralisation to possibly reduce payback periods.
- The Definitive Feasibility Study continues to be advanced.
AVZ’s Managing Director Mr Nigel Ferguson commented: “These last 2 holes drilled at Carriere de l’Este are of the same lithium grade tenor and intersection widths as those reported on previously – (19th February 2019). Both holes 5 and 6 have drilled through high grade zones averaging over 2% Li2O, mineralisation which was also seen on holes spaced 200 metres along strike. Hole 5 for example generated 56 by 1 metre assays greater than 2% Li2O with a maximum value in one sample of 3.97% from 166 to 167 metres deep. Hole 6 was comparable with 97 samples returning values greater than 2% including 5 individual samples grading greater than 4% Li2O which equates to each of the 5 samples containing in excess of 50% spodumene. The highest value from hole 6 was from 181 to 182 metres downhole and reported 4.65% Li2O (Figures 1 and 2).
Carriere de l’Este is unlike Roche Dure in that it has higher grade zones within well mineralised pegmatite suggesting a more classical zonation model for this large pegmatite. Depending on future drilling, this may open up possibilities for high grade blending with Roche Dure mineralisation to shorten pay back periods and is definitely worth considering as we move through the mining study phase currently underway.”
AVZ Minerals Limited (ASX: AVZ) is pleased to report it has received further strong results from its Mineral Resource drilling at the Manono Lithium and Tin Project in the Democratic Republic of Congo. It has received results from the last 2 diamond drill holes at Carrier de l’Este.
Results from the 2 holes are detailed in the table below and Figures 1 and 2 show the diamond drill core from hole CD18DD006, 181 to 182 metres downhole (sample 21822 assayed 4.65% Li2O) with abundant white lathes of coarse spodumene.
Figure 1: CD18DD006. 181 – 182m 4.65% contained Li2O
Figure 2: Close up of core from 181 to 182 metres. Very coarse spodumene throughout
AVZ Minerals Now Fully Funded to Final Investment Decision at the Manono Project via an Oversubscribed Placement Raising $9.8M
ASX Announcement 27 February 2019
Highlights:
- $9.8 million Placement fully funds AVZ to Final Investment Decision at the Manono Lithium and Tin Project
- Placement was cornerstoned by new strategic investor Lithium Plus and existing strategic investor Huayou Cobalt Group
- Strong support from Australian and global institutions as well as sophisticated investors
- AVZ welcomes a new spotstrategic investment by Lithium Plus which has subscribed for $3 million in the Placement for an initial 3.46% interest in the Company
- Lithium Plus is a specialist lithium investment company led by Mr Bin Guo who has close links to the battery manufacturing industry in China and is also a director of North American Lithium Inc.
- Zhejiang Huayou Cobalt Co., Ltd (SHA:603799, Mkt Cap US$4.5bn) through its group company Huayou International Mining (Hong Kong) Limited, (Huayou Cobalt Group) has continued its support of AVZ Minerals by subscribing for $1 million in the Placement to maintain a 9.30% interest in the Company
- Huayou Cobalt Group is one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with a number of established mining operations
- Placement brings total proceeds from new shares issued to $15 million before costs as contemplated in the SPP Prospectus
AVZ Minerals Ltd (ASX: AVZ, “The Company”) is pleased to announce the success of its placement to raise $9.8 million before costs (Placement), which, combined with the recently completed Share Purchase Plan (SPP), will bring the total proceeds from the new share issues to $15 million before costs as contemplated in the SPP Prospectus.
The Placement has been completed at 3.8¢ per share being the same price as under the SPP and 257 million new shares will be issued under the Company’s 15% placement capacity (ASX Listing Rule 7.1).
Lithium Plus Pty Ltd (Lithium Plus) is a specialist lithium investment company led by Mr Bin Guo who has close links to the battery manufacturing industry in China. Mr Guo is also a Director of North American Lithium Inc. – a Canadian mining company currently developing and commissioning an open pit lithium carbonate mine and processing plant near Val d’Or, Quebec.
Zhejiang Huayou Cobalt Co., Ltd (SHA:603799, Mkt Cap US$4.5bn) through its group company Huayou International Mining (Hong Kong) Limited, (Huayou Cobalt Group) has continued its support by subscribing for $1 million in the Placement to maintain a 9.30% interest in the Company. Huayou Cobalt Group is one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with a number of established mining operations within the Democratic Republic of Congo.
The placement comes at an exciting time for participants in the lithium industry as interest in EVs in the world’s largest vehicle market surges. The Company notes that sales of electric cars in China is reported to have increased 188% in January 2019 (source: The Australian Financial Review 23-24 February 2019, “Car Makers Brace for Electric Shock” written by Hans van Leeuwen).
Funds from the Placement and SPP will be used to execute the Company’s strategy to fast-track the Manono Lithium and Tin Project towards production (refer to page 10 of the SPP Prospectus). The company expects the funding to assist in achieving its goal of delivering the Definitive Feasibility Study for the Manono Project in 2019.
Patersons Securities Limited acted as Lead Manager to the Placement.
Managing Director, Nigel Ferguson said:
“This Placement together with the oversubscribed SPP will leave AVZ fully funded to final investment decision. I would like to thank Huayou Cobalt Group for its continued support and also welcome Lithium Plus and a number of new Australian and global institutions to our register. We look forward to working with Huayou Cobalt Group and Lithium Plus in developing the World-Class Manono Lithium and Tin Project."
Metallurgical Sample Update
ASX Announcement 22 February 2019
Highlights
- Approximately 13 tonnes of PQ core from 5 diamond drill holes has left Lubumbashi for Nagrom Laboratories in Perth via Dar Es Salaam
- The locations of the 5 metallurgical drillholes from which the bulk sample has been harvested, were designed to ensure a good geographical spread across the bulk of the Roche Dure deposit and that all material came from zones of Measured Resource, as identified from the November 2018 JORC compliant resource estimate
- The sighting of the metallurgical holes was designed to ensure both weathered material and fresh material was sampled to determine if lithium minerals in the upper weathered zone remain economically viable
- The tonnage of rock sampled, both fresh and weathered, was calculated to provide enough final concentrated spodumene representative of the Roche Dure orebody.
- Tin and tantalum recoveries, previously unreported in the 2Mtpa Scoping Study (press release dated 19 November 2018) will be determined and used in the ongoing Feasibility Study to calculate the scale of the likely reduction in operating costs from the sale of these by-products
- Any concentrated spodumene produced from the Nagrom test programme will be deemed to be “representative” given the geographical spread of the sample taken from the central and largest portion of the current Measured Resource of the Roche Dure pegmatite deposit
- Parcels of representative spodumene concentrate produced in the metallurgical test programme will be used to determine, at bench scale, if lithium carbonate and lithium hydroxide can be manufactured from typical Roche Dure spodumene concentrates and will also be provided to potential off take clients/end users
AVZ’s Managing Director Mr Nigel Ferguson commented: “We are pleased that the 13 tonnes of sample has been cleared to leave Lubumbashi and will arrive in Perth in time to complete metallurgical test work to be included in the Feasibility Study due later this year. The market will be updated on progress of these samples and results as they are received.”
AVZ Minerals Limited (ASX: AVZ) is pleased to report that approximately 13 tonnes of whole PQ core samples has been shipped out of Lubumbashi en-route to Perth for full metallurgical test work.
The 5 vertical drill holes (Figure 1) were completed by Equity Drilling in late November 2018 and then collated and loaded into a container in Lubumbashi for trans-shipment to Nagrom Laboratories in Perth for full metallurgical test work on optimising recoveries of both lithium (spodumene) and tin and associated tantalum.
Unlike the preliminary metallurgical test work, these samples will be subjected to a full suite of tests that will allow a complete understanding of how the Roche Dure pegmatite will process through the planned recovery circuit.
Additionally, AVZ will be able to report for the first time, likely recoveries from the 330,000 tonne tin and tantalum JORC compliant resource reported to the market on November 2018.
Figure 1: Locations of 5 met test-work drill holes at Roche Dure
AVZ Drills 209.61m* @ 1.73% Li2O & 954ppm Sn at the Roche Dure Pegmatite
ASX Announcement 31 January 2019
Highlights
- AVZ’s infill and north-east extensional drilling at Roche Dure identifies additional high-grade lithium and tin mineralisation not included in the Nov 2018 JORC Resource
- Shallow drill holes and “fanned” drill holes designed to increase confidence levels in the pegmatite immediately below the water filled open pit also indicate shallow lithium mineralisation.
- Assay Results for 5 drill holes received including MO18DD074 which intersected 209.61m* @ 1.73%Li2O & 954ppm Sn from 133.20m downhole including 0.60m of core loss on drill section 7500mN.
- All holes intersected mineralisation with widths and grades relatively consistent with prior drilling
- Results from latest drilling to be included in a new Manono JORC Resource expected to be released in March 2019
* Down-hole length. Additional drilling is required to confirm the true-thickness of the pegmatites.
AVZ’s Managing Director Mr Nigel Ferguson commented: “The previous JORC estimate (November 2018) used assay results for holes up to and including MO18DD066. However, assay results for the remaining Roche Dure holes up to and including MO18DD083 are still coming in from the laboratory and these 5 new drillholes have further confirmed strong spodumene values along strike in the NE of the Roche Dure orebody as well as from infilled areas included in the November JORC estimate. It is planned to rerun the JORC estimate once all of the remaining holes have been received, most probably in late February 2019. The later holes from 2018 also include shallow holes drilled both down dip from the western edge of the pit (MO18DD074) and along strike from the South East of the open pit perimeter to try and obtain information from shallower parts of the orebody, beneath the open pit. Whilst these sample results are also yet to be received, physical inspection of the samples confirms the presence of strong lithium mineralisation near the open pit floors.”
“Once the rainy season eases, AVZ plans to commence dewatering of the Roche Dure and neighbouring M’Pete open pits. This is expected to take some 3 to 4 months of continuous pumping and conclude towards the end of the 2nd quarter 2019 depending on the conditions encountered. This work forms part of the mining Feasibility Study and with the pits empty of water, a proper geotechnical assessment of the pit walls will be undertaken. It will also be possible to drill the pit floor to determine the lithium content of the pegmatite that is likely to form the first material to report to any proposed new processing plant. The geological and assay information obtained will then be added to the JORC estimate at that time with the expected result of upgrading tonnages within JORC categories but not the total JORC tonnages.”
AVZ Minerals Limited (ASX: AVZ) is pleased to report it has received further strong results from its Mineral Resource drilling at the Manono Lithium and Tin Project in the Democratic Republic of Congo. It has received results from a further five diamond drill holes at Roche Dure, none of which were included in the recently updated JORC Mineral Resource estimate reported in late November 2018.
Figure 1: Locations of drillholes MO18DD071, 073, 074, 075 and MO18D76
Quarterly Activities Report for the quarter ended 31 December 2018
ASX Announcement 30 January 2019
Highlights
- Manono Scoping Study released confirming Manono as the largest undeveloped hard rock lithium project globally in terms of grade, mine life and expandability
- Subsequent transport costs savings identified yielding a 26% drop in transport costs and decline in total operating costs of 16% vs original October 2018 Scoping Study
- Updated Manono Mineral Resource released highlighting a 54% increase in Measured, Indicated & Inferred Resource to 400mt @ 1.66% Li2O (spodumene), substantial tin and tantalum credits and very low levels of deleterious elements
- Drilling continued throughout the Quarter demonstrating potential for yet further upgrade to categories of the Manono Mineral Resource
- Definitive Feasibility Study for the Manono Lithium and Tin Project progressing
- Wide spaced drilling at Carrière De L’Este in the northern Manono Sector confirms visible spodumene in drill core with assay results pending
- Congo royalty rates for lithium remain unchanged after Congo Government review
AVZ Minerals Ltd (ASX: AVZ) is pleased to provide the following report on its activities for the quarter ended 31 December 2018.
The December Quarter has been a decisive one for the company. Whilst the AVZ Board reasonably expects the size and quality of the Manono JORC resource to continue to grow, the Project has now moved decisively beyond the pure exploration stage and, with the help of the recently announced modest capital raising, it is moving into the Pre-Development Phase.
The Scoping Study delivered during the quarter has confirmed Manono as the largest undeveloped hard rock lithium project globally in terms of grade, mine life and expandability. The resource is now the largest lithium project with the highest grade owned by an ASX listed company. The economics of the project are also extremely compelling, with a pre-tax pre-royalties NPV (100% basis) estimated at US$1.6bn and an IRR of over 90%.
Importantly, work for the Scoping Study and subsequent analysis has identified very cost effective transport solutions for Manono ore. The company expects that yet further improvements to the already impressive transport economics can be made.
AVZ’s Managing Director Nigel Ferguson commented: “The recent quarter has been a busy one for the company. We are extremely proud of where we have taken the Manono asset in a relatively short period of time. With the October 2018 Scoping Study, we have demonstrated to the market the compelling economics of the Project and a commercial transportation route which we expect will unlock the potential of this asset. Transport is the key here and we aren’t the first company in the DRC to take the export ore eastwards from the DRC. With the delivery of a DFS in this half of 2019 and yet further resource upgrades, we would expect the market to better appreciate the size and economic potential of Manono”.
