AVZ Reported Strong Results From Its Drilling At The Manono Lithium And Tin Project

AVZ Minerals Limited (ASX:AVZ) is into the exploration of minerals. The company has been carrying out operations in the field of minerals exploration and mining in Namibia. It holds an interest in many mineral exploration projects including its sixty percent stake in the world largest lithium-rich project called Manono Project based in DRC, central Africa. AVZ also has full ownership of Manono Extensive Project and sixty percent interest in the Katanga Regional Project. The company also owns various base metal prospective projects that are positioned in the central north of Namibia.

On 31 January 2019, the company reported it had 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.

The highlights include that the company’s infill and north-east extensional drilling at Roche Dure identify additional high-grade lithium and tin mineralization, which were not included in the November 2018 JORC Resource. The company made shallow drill holes and “fanned” drill holes to increase confidence levels in the pegmatite immediately below the water filled open pit, which also indicates shallow lithium mineralization. Moreover, the assay results for five drill holes received including MO18DD074. All holes intersected mineralization with widths and grades in line with the previous drilling. Finally, results from the latest drilling will be included in a new Manono JORC Resource which is expected to be released in March 2019.

The Managing Director of the company Mr. Nigel Ferguson said that previously JORC estimate in 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 continuing to come in from the laboratory. These five new drill-holes 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. There is a plan to rerun the JORC estimate most probably in late February 2019, once all the remaining holes have been received.

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 mineralization near the open pit floors.

Today the company also released a prospectus for its share purchase plan to raise up-to $5 million at an issue price of twenty percent discount to the VWAP for shares. The offer is scheduled to close at 5 pm WST on 18 February 2019.

Now let us have a glance at the AVZ Minerals Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.047 and declined by almost 4.082% during the day’s trade, with a market capitalization of $92.53 million. The stock opened at $0.047 with its day high at the same price; however, the day’s low price touched $0.043. The stock has yielded a YTD return of -33.78% and generated negative yields of 65.0% and 28.99% over the last six months and three months respectively.

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