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Lithium industry in the Media....The Second Coming, page-14

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bipul016

80 Posts.

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08/03/19

20:07

Post #: 37704179
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Originally posted by JB1975: ↑

"we’re also looking for a potential non-executive chairman to come on board as well. "

A non-executive chairman. So more of a governance role?

If memory serves AVZ had to do some wrestling to get their Scoping Study through the ASX - there was even a suspension for a while -(I believe 5mtp or 4 and 10mtpa cases were withdrawn based on rumors, from the Scoping Study).

With the January Presentation announcement indicating a Manono project plan showing a DFS target delivery date of Q2 2019 and a Transport confirmation of Q1 2019 (that would be end of this month) I've been thinking about JORC 2012 reporting requirements relating to Definitive Feasibility Studies.

Transport or Infrastructure is one of ten 'Modifying Factors' that needs to be considered in a DFS.

(From Clause 40 of the JORC 2012 Code)

"A Feasibility Study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable Modifying Factors together with any other relevant operation factors and detailed financial analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study".

It is my understanding, based on AVZ reports, that neither the southern route (617 from Manono to Lubumbashi) nor the eastern route (part of which was Manono to Moba - the preferred route in the Scoping Study ) can be completed to be all weather passable by the target date of end March this year. In fact the 617 route is still about 40kms south of Mitwaba (with Mitwaba having been the target they'd hoped to refurbush to during 2018). So so far transport still looks to be a problem for inclusion to the "appropriately detailed" standard of a DFS.

So AVZ is going to have something of a challenge in getting a formal DFS out, that will get past the ASX with an eye for what JORC requirements of a DFS entail.

Could be AVZ already has a lot of unreleased detail on transport routes from Manono to Moba but using Google Maps satellite data I haven't been able to see anything that would give me confidence that that is so - so the ball is still in AVZ's court to produce.

A Chairman with governance experience might be useful to help get material prepared to satisfy the ASX reporting standards (Jorc 2012 DFS) but it seems like a lot of stuff has to happen in a short period of time for the timetable AVZ laid out in the January Presentation to be met.

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Hi JB, how latest is your google map? I have built my home in 2015 and I still can’t see it on google map. Do you use paid version of google map?

Cheers

AVZ Price at posting: 4.4¢ Sentiment: Hold Disclosure: Held
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Lithium industry in the Media....The Second Coming, page-14

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Chaos reigns markets – so let's take stock of where we're at ahead of December