On 30 November 2018, AVZ Minerals Limited (ASX: AVZ) announced a significant resource increase in the current Mineral Resource update of Manono Lithium-Tin-Tantalum Project in the DRC’s Tanganyika Province. Due to this increase, the company’s 60% owned Manono Lithium Project has become the world’s largest lithium deposit. Following the release of this news, the share price of the company increased by 6.494 percent as on 30 November 2018.
According to the announcement, the total Measured, Indicated and Inferred Resources have increased by 54.1 percent from 259.9Mt to 400.4Mt grading 1.66% Li2O (spodumene). And, these resources now contain 6.64 Mn tonnes of lithium oxide (Li2O), 300kt of tin as cassiterite grading 750ppm Sn and 13.2kt of Tantalum grading 33ppm Tantalum.
The company reported that the measured resources have increased by 117 percent from 43.0Mt to 93.5Mt grading 1.69% Li2O. Further, the indicated resources decreased by 8.1 percent from 104.7 million tonnes to 96.3 million tonnes grading 1.64% Li2O. The company also announced a 28.5 percent increase in combined Measured and Indicated resources increasing from 147.7Mt to 189.8Mt. Moreover, the total Inferred Resources increased by 87.8% from 112.2mt to 210.7mt.
According to the company’s announcement this Mineral Resource was estimated on an approximate 1,600m strike length of the Roche Dure pegmatite utilizing assay data from 68 drill holes and geological data from a further 13 drill holes. Further, the company has drilled five more holes, and they will be incorporated in the next mineral estimate.
According to the AVZ’s Managing Director Mr. Nigel Ferguson, the increased potential of Manono Lithium Project has raised the confidence levels in the central section of the Roche Dure orebody.
He also informed that the company is expecting the resource figure to increase further in 2019 as data continues to come in from final drill holes and the company is also waiting for the results reconnaissance drilling programme at Carriere de L’Este in the northern Manono Sector which is due to come in early 2019.
According to Mr. Nigel Ferguson, this update is a result of a highly successful drilling program of over ten months which has clearly reflected the potential of the Manono Lithium Project. The company is encouraged by the outcomes of the continuing drilling programme.
In the September quarter, the company made some management changes which include the appointment of Mr. Graeme Johnston as the Technical Director. The company also appointed Mr. Leonard Math as Joint Company Secretary and accepted the resignation of Mr. Mathew O’Hara.
As at 30 September 2018, the net cash used in operating activities was $8.4 million, and net cash used in investing activities was $1.3 million. At the end of the September quarter, the company was having cash and cash equivalent of $6.54 million.
In the last six months, the share of the company decreased by 51.88 percent as on 29 November 2018. AVZ’s shares traded at $0.082 with a market capitalization of circa $145.41 million as on 30 November 2018 (AEST 2:01 PM).
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