On 6 November 2018, AVZ Minerals Limited (ASX: AVZ) announced that it has received further high-grade results from its Mineral Resource drilling at the Manono Lithium Project. Following this, the share price climbed up 6.098% on November 06, 2018.
Further, AVZ’s Managing Director Mr. Nigel Ferguson said that the drilling at Roche Dure continues to demonstrate strong lithium mineralization to the NW of Roche Dure close to the ground surface on new section 7700mN. As the scale of the Roche Dure mineralization is continuously growing, the company is planning to release an updated Mineral Resource Estimate before the end of 2018.
Mr. Nigel Ferguson also informed about a bulk sample which is currently being drilled across the orebody in vertical PQ diameter cored holes, and it will be sent to Perth for exhaustive metallurgical tests, including tin and tantalum recoveries. This bulk sampling programme was initiated in mid-October month and is expected to be completed in mid-November with the samples being sent to Nagrom in Perth as soon as practicable, thereafter. Lithium, tin and tantalum recoveries and other tests required for process plant design studies are going to be carried out on the bulk sample as well as the possible production of batches of concentrate for potential offtake partners. Apart from deeply weathered hole MO18DD060 in the SW, the assays from the remaining 6 drill holes have again demonstrated excellent lithium mineralization.
In the recently released September quarter activities report, the company reported about the scoping study of Manono Lithium Project. In the September quarter, the company also announced a maiden mineral resource for the Manono Project of 259.9Mt grading 1.63% Li2O which confirmed Manono’s potential to become a world leader in the global lithium market. At the end of the September quarter, the net cash used in operating activities was $8.4 million. The cash and cash equivalents at the end of September quarter was $6.54 million.
During the September quarter, the company appointed Mr. Graeme Johnston as Technical Director. Mr. Johnston is a geologist with more than 30 years of experience, and he was also AVZ’s Project Manager at Manono since May 2017. Further, Mr. Leonard Math was appointed Joint Company Secretary in the month of July. Later in the quarter, the Company accepted the resignation of Mathew O’Hara as Joint Company Secretary, and Mr. Math assumed full responsibility of the Company Secretary role.
In FY18, AVZ reported revenue of $169,121 which was $20,432 in FY17. The total comprehensive loss of the year was $3.24m and the basic and diluted loss per share was 0.34 cent in FY18. The total current assets of the company increased from $1.27m in FY17 to $16.42m in FY18. The net cash outflow from the operating activities was 1.96m in FY18 which was $0.92m in FY17.
In the last six months, the share price of the company decreased by 54.44 percent as on 5 November 2018. AVZ’s shares traded at $0.087 with a market capitalization of circa $154.85 million as on 6 November 2018 (AEST 4:00 PM).
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