AVZ Minerals Limited (ASX: AVZ), a mineral explorer, announced on 8th May 2019 that the company upgraded its Measured and Indicated Mineral Resources and confirmed Manono as the largest Measured and Indicated Lithium Resource in the world, in which the company holds 60% interest.
As per the notification, the total mineral resource of the Roche Dure prospect stands at 400 million tonnes with an average grade of 1.65% lithium oxide, and the company categorised it as per the JORC 2012 Code. The sub-division of the total resources revealed the Measured Resource at 107 million tonnes with an average grade of 1.68% lithium oxide, 836 part per million (ppm) of Tin, 36ppm of Tantalum, 0.93% of Ferric Oxide and 0.31% of Phosphorus pentoxide.
The Indicated Mineral Resources of the prospect stands at 162 million tonnes with an average grade of 1.63% lithium oxide, 803 part per million (ppm) of Tin, 36ppm of Tantalum, 0.96% of Ferric Oxide and 0.29% of Phosphorus pentoxide.
The Inferred Mineral Resources stands at 131 million tonnes with an average grade of 1.66% lithium oxide, 509 part per million (ppm) of Tin, 30ppm of Tantalum, 1.00% of Ferric Oxide and 0.28% of Phosphorus pentoxide.
AVZ mineral resources include the data from the assay of 86 drill holes, which accounted for 1,600m of strike length and geological data from an additional five drill holes. As per the announcement, the company used the result of 27,466m diamond drilling for the mineral resource estimation. The company recently received spectacular results from Carriere De I’ Este Prospect.
As per the estimations, the company increased the combined Measured and Indicated Resources by 41.7% to stand at 269.0 million tonnes, as compared to 189.8 million tonnes previously. The tonnage in the mineral resource remained unchanged; however, the company converted 67% of the total mineral resources into Measured and Indicated, which marked an increase as compared to just 47% conversion previously.
As per the company, the 5million tonnes per annum Scoping Study is underway, and the improved resources increased the scope of it by providing certainty to production schedules and financial modelling. AVZ mentioned that the drilling at Roche Dure is now completed, except the resource drilling from the pit floor and geotechnical and hydrological drilling.
The company also presented an RIU Conference Presentation, in which the company published a press release from Global car manufacturer-Volkswagen, in which the car major acknowledged lithium to be among the most sought-after raw material in the near future (5th April 2019).
AVZ also mentioned that China’s Ministry of Land & Resources referred the Manono District as the “Escondida of Lithium”, referring to the Escondida Mine, which is the top copper producing mine in the world.
Further the company highlighted that its share prices tracked the movement in lithium prices; however, the company believes that the market failed to recognise the value creation at Manono prospect over the previous 18 months.
Source: Refer Company’s announcement on 8th May 2019; RIU Conference presentation
In a nutshell, the company increased its Measured and Mineral Resources at the Roche Dure prospect, which is in the Manono project. The company is estimating the high-potential of the prospect and plans to reach a production level of 5 million tonnes per annum.
The share prices of the company ended the day’s session at $0.041 (as on 8th May 2019), unchanged as compared to its previous close.
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