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AVZ Minerals Confirms Carriere de l’Este Potential

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THE DRILL SERGEANT: AVZ Minerals (ASX: AVZ) reported new results from Mineral Resource drilling of the company’s Manono lithium and tin project in the Democratic Republic of Congo.

The latest assay results come from four new, widely spaced ‘step-out’ holes drilled at Carriere de l’Este, located on section lines 200m and 400m NNE along strike from the initial 2017 drill holes.

The company said the new holes have identified additional high-grade spodumene rich zones for future infill resource estimation drill programs.

The Carriere de l’Este pegmatite deposit is now confirmed at 1.2 kilometres long and remains open at both ends and down dip.

High-grade intersections from recent drilling include:

12.05 metres at 2.41 per cent lithium and 735ppm tin;
21.09m ta 2.1 per cent lithium and 943ppm tin; and
16m at 2.49 per cent lithium and 571ppm tin.

“The assay results from these four new holes show highly encouraging mineralisation 400 metres closer to the historical Carriere de l’Este open pit; as well as a more complex geology with intrusions of aplitic pegmatite and dolerite possibly along late-stage faults,” AVZ Minerals managing director Nigel Ferguson said in the company’s ASX announcement.

“The holes were deliberately widely spaced to try and help track the location of the high-grade zones mapped further to the southwest along this massive deposit and to that extent, the drilling has been successful.

“This information will be used to plan focussed infill drilling for the high-grade zones, with a closer pattern required in order to generate near surface Indicated or Measured Resources for possible conversion to reserves, prior to the commissioning of the new processing plant.

“The possible delineation of high-grade future reserves has the potential to initially feed higher grade ore to the plant, providing increased SC6 production volumes from the start of operations.

“This new information has allowed the location of the hanging wall contact to be expanded in areas of poor outcrop, which will help with the efficient targeting of future resource drilling of the overall Carriere de l’Este deposit.

“The drill data has also confirmed the presence of sub-cropping spodumene mineralisation to 1.2 kilometres long at average pegmatite widths of up to 200 metres in places, confirming this deposit as a likely rival to Roche Dure.

“Additionally, drill planning is well advanced on both eluvial laterite hosted tin deposits and the historical F2 and F4 alluvial tin deposits identified from the review of historical tin exploration carried out in the 1980s with drilling expected to commence soon.

“Despite future tin production accounting for only a small percentage of the project’s overall revenue, a strengthening tin and tantalum price continues to justify some exploration expenditure to gain information on the potential scale of these deposits which may sustain a separate placer tin mining business on the concession.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@avzminerals.com.au

 

Web: www.avzminerals.com.au

 

AVZ Minerals Drills Lithium From Roche Dure Pit Floor

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THE DRILL SERGEANT: AVZ Minerals Limited (ASX: AVZ) declared further high-grade lithium and tin mineralisation results from drilling undertaken at the company’s Manono lithium and tin project in the Democratic Republic of Congo.

AVZ Minerals scored the results during Mineral Resource drilling of the Manono project from the last three of nine planned diamond drill holes at Roche Dure in previously undrilled areas beneath the historical pit which were previously inaccessible and under water during the earlier resource drilling programs.

All three holes were collared in fresh or slightly weathered pegmatite from the top of the hole, returning intersection of:

180 metres at 1.8 per cent lithium (Li2O) and 1,119ppm tin;
245.15m at 1.73 per cent Li2O and 926ppm tin; and
218.6m at 1.69 per cent Li2O and 1,152ppm Sn.

Having now completed this pit floor drilling program at Roche Dure, and having received all outstanding assays, AVZ indicated a new resource estimate is now underway to update the previous May 2019 Mineral Resources.

“The final assay results from these last three of the nine planned drillholes on the Roche Dure pit floor again show strong lithium mineralisation from the pit floor surface,” AVZ Minerals managing director Nigel Ferguson said in the company’s ASX announcement.

“Additionally, drilling also reported higher grade portions developing within the northern portions of the orebody, and that these may even coalesce both up dip and along strike.

“This may present as the start of a much higher-grade core which will need further investigation to determine the possibility of finding more significant tonnages of high-grade feedstock, apart from those at Carriere de L’Este, that could feed the plant in its early years of operation to shorten the pay-back period.”

“Now these assays have been reported they will be merged with our current database and we will re-run the geological resource model to reclassify that portion of the pit floor which was previously modelled as waste due to the lack of drilling information.

“Following on from the geology remodelling and coupled with the improvements to the plant design parameters, we will then check the previous mine design against the updated model to optimise the mine design, generate new ore reserves and revisit the DFS results.”

 

 

 

Email: admin@avzminerals.com.au

 

Web: www.avzminerals.com.au

 

AVZ Minerals Awards Manono FEED Study

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THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) has awarded a 12-week Front End Engineering and Design (FEED) contract in relation to the company’s Manono lithium and tin project in the Democratic Republic of Congo.

AVZ Minerals charged Melbourne based engineering company, Mincore Pty Ltd to deliver key elements of the FEED study including to:

confirm the process flow sheet,
confirm all bulk material quantities to verify pricing, confirm selected equipment pricing,
finalisation of the execution schedule, and
provide ‘Issued for Construction’ early works drawings.

Mincore has offered to accept part payment for the FEED study in AVZ shares, which AVZ considers to demonstrate a strong vote of confidence in the viability of the Manono project.

“Progressing the design of the Manono project at this time is standard practice and has the benefit of bringing the technical design parameters to finality, thereby providing potential investors and financiers with comfort on the Manono project schedule, capital and opex costs,” AVZ managing director Nigel Ferguson said in the company’s ASX announcement.

“It will also save significant time moving forward, as the results of the FEED study will be delivered to the successful company that is awarded the process plant EPC contract.

“We are committed to progressing the Manono lithium and tin project in a timely manner and the award of this study is a big step on the pathway forward.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@avzminerals.com.au

 

Web: www.avzminerals.com.au

 

 

AVZ Minerals Hits High-Grade Lithium and Tin at Roche Dure

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THE DRILL SERGEANT: AVZ Minerals (ASX: AVZ) received pleasing assay results from Mineral Resource drilling completed at the company’s Manono lithium and tin project in the Democratic Republic of Congo.

AVZ Minerals received the assay results from the first four of nine planned diamond drill holes being undertaken at Roche Dure in previously undrilled areas beneath the historical pit which were inaccessible and under water during earlier resource drilling programs.

Results include:

MO20DD002
138.52 metres at 1.59 per cent lithium dioxide (Li2O) and 1,250 ppm tin

MO20DD003
9.0m at 0.63 per cent Li2O and 763ppm tin (with 3.05m of core loss)
32.19m at 1.33 per cent Li2O and 1,257 ppm tin (with 0.25m core loss)

MO20DD004
203.25m at 1.59 per cent Li2O and 1,014ppm tin (with 0.3m of core loss) including 10.0m at 2.45 per cent Li2O and 661ppm tin and 15.0m at 1.95 per cent Li2O and 1,087ppm tin and 17.0m at 2.11 per cent Li2O and 768ppm tin and
276.20m at 1.45 per cent Li2O and 1,035ppm tin (with 1m of sample not returned)

MO20DD006
28.3 at 1.17 per cent Li2O and 1,412ppm tin (with 1m of sample not returned) and
4.90m at 0.04 per cent Li2O and 689ppm tin.

“These drilling results, combined with the pit floor mapping, confirm the pit floor ‘wedge’ is in fact made up of pegmatitic rock that historically was mined as tin-bearing feedstock,” AVZ managing director Nigel Ferguson said in the company’s ASX announcement.

“This area had previously been categorised as waste material in our current mining and financial model due to a lack of drilling data and under our current model, is pre-stripped as waste before ore can be sent to the processing plant.

“These positive drill results unequivocally demonstrate this is not the case and this material may be remodelled with increased confidence as revenue generating ore once all of the assay results are returned.

“The company is waiting on further assay results, with the targeted drill program soon to be completed with only one hole currently underway.”

 

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@avzminerals.com.au

 

Web: www.avzminerals.com.au

 

 

AVZ Minerals Increases Manono Project Stake

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THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) has executed a Share Sale Purchase Agreement with Dathomir Mining Resources SARL that will result in an increase to the former’s equity in the Manono lithium and tin project in the Democratic Republic of Congo (DRC).

AVZ Minerals said it has been in discussions with Dathomir over the past few months, from which Dathomir has agreed to sell a five per cent equity share in Dathcom Mining SAS to AVZ for a total consideration of US$5.5 million.

Dathcom currently holds 100 per cent of the Manono lithium and tin project concession.

AVZ explained the terms of this purchase agreement represent a highly accretive transaction for AVZ shareholders with minimal upfront payment.

The first tranche payment of US$500,000 is to be paid within 14 days of execution and the balance of the consideration can be paid at any time within a period of 36 months from execution of the agreement.

At the completion of the transaction, AVZ’s equity interest in the project licence will increase to 65 per cent, representing an NPV value added, based on the recent 5 million tonnes per annum Scoping Study of some US$130 million to approximately US$1.68 billion for AVZ’s 65 per cent equity interest (based on ±35% accuracy and including US$78M in capital contingency).

The deal will need to pass an Extraordinary General Meeting of Dathcom to be convened in late July or early August to approve the sale of additional equity within Dathcom to AVZ.

“AVZ is pleased to be able to secure further equity interest in the Manono lithium and tin project, given its Tier 1 status,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“We are still in discussion with our main partner, La Congolaise D’Exploitation Miniere (Cominiere) to secure additional equity from them on similar terms.

“Cominiere, as with all parastatal entities in the DRC, are currently under a ‘suspension of signature authority’ following the Presidential elections.

“It is hoped that this will soon be lifted and a positive outcome to purchase further equity in the project, as discussed to date with Cominiere, can soon be achieved for AVZ.

“The extra equity in the Manono lithium and tin project will add significantly to the bottom line and Net Present Values and it is critical for project financing as AVZ continues discussions with potential financiers and offtakers.”

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com.au

 

AVZ Minerals Executes Strategic Relationship Agreement with Huayou Cobalt Group

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THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) informed the market that it has entered a strategic relationship with Shanghai-listed company, Zhejiang Huayou Cobalt Co. Ltd.

The deal has been struck via the latter’s group company, Huayou International Mining (Hong Kong) Limited.

AVZ Minerals explained the agreement would enable it to draw on Huayou Cobalt Group’s experience in the Democratic Republic of Congo (DRC) and mainland China as it completes a Definitive Feasibility Study for the company’s Manono lithium and tin project in the DRC.

AVZ expects Huayou will also be able to provide advice and assistance with respect to project financing, offtake financing, strategic services, EPCM and cost-effective transport of product to final recipients.

Huayou Cobalt Group is one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with several established cobalt mining and processing operations within the DRC.

Huayou is also a 9.47 per cent shareholder in AVZ.

AVZ outlined the strategic relationship that will emanate from the deal, saying it has been designed to promote discussions to advance Manono to production including, but not limited to, the Definitive Feasibility Study; project financing; off-take and EPCM; – Consideration of any other ways in which a relationship between the two parties may be beneficial for all stakeholders.

The Strategic Relationship agreement is non-binding and non-exclusive.

“AVZ values its existing relationship with Huayou very highly and this new agreement will see the two companies come even closer to advance the Manono project,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“We believe that bringing Huayou’s tremendous mining expertise to bear on the DFS, financing and offtake negotiation will accelerate the commercialisation of the largest lithium ore body on the ASX and yield tremendous value for AVZ shareholders.”

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com.au

 

AVZ Minerals Scoping Study Strengthens Manono Economic Potential

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THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) released extended results of a Scoping Study for five million tonnes per annum capacity on the company’s Manono lithium and tin project in the Democratic Republic of Congo (DRC).

AVZ Minerals explained the study evaluated the technical, transport, power and potential economic viability of an open pit mine development at the Manono project, where a JORC Mineral Resource of 400 million tonnes of 1.65 per cent lithium oxide (Li2O) has been defined.

All costings and projections in the financial model were prepared on all classifications of resources namely, Measured, Indicated and Inferred Resource tonnages.

Measured and Indicated portions combined, account for approximately 67.25 per cent of the existing Mineral Resource while the Inferred category resources accounts for the remaining 32.75 per cent.

The company said the lower categorised resource provides a lower level of confidence in the figures and reduces the reliability of the estimated returns.

The study considered various processing options to optimise throughput capacity and recoveries, with consideration given to managing early stage cash flow and upfront capital costs.

Mining and processing parameters were investigated at US$750 per tonne selling price (base price based on 5.8 per cent Li20 concentrate).

This scoping study plan is to develop Manono as a 5 million tonnes per annum (Case 2) high-grade open pit mine to supply material to a conventional crushing, high pressure grinding, dense media separation (DMS) and flotation plant.

The estimates presented by the Scoping Study were based on 100 per cent project interest although currently AVZ holds 60 per cent interest in the Manono project.

The 5Mtpa capital costs for the processing plant and associated project infrastructure are estimated at approximately US$380 to US$400M (C5 ±35% and includes US$78M contingency).

“Not only does the results of the five million tonnes per annum (Case 2) study confirm the excellent quality of the Manono project, it further underlines the expandability of the project,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“Management will now turn its attention to selecting the optimal throughput level in conjunction with consultants working on the DFS.”

AVZ has commenced a Definitive Feasibility Study on the Manono lithium and tin project that is aimed at improving the accuracy of cost estimates and to provide additional definition on the project’s infrastructure requirements such as water, power and transport.

 

The Resources Roadhouse sat down with AVZ managing director Nigel Ferguson at the recent RIU Sydney Resources Roundup. WATCH THE INTERVIEW HERE

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com.au

 

AVZ Minerals Increases Manono Resource and Confidence

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THE DRILL SERGEANT: AVZ Minerals (ASX: AVZ) has increased resource confidence levels of the company’s 60 per cent-owned Manono lithium and tin project in the Tanganyika Province of Democratic Republic of Congo (DRC).

AVZ Mineral’s heightened confidence stems from an upgrade in the current Mineral Resource for the project, so much so the company now claims Manono as being the largest Measured and Indicated lithium Resources in the world.

The new figures show a 41.7 per cent increase in combined Measured and Indicated Resources, up from 189.8 million tonnes to 269 million tonnes at 1.65 per cent lithium oxide (Li2O), 816ppm tin and 36ppm tantalum.

The improvement in Mineral Resource confidence comes from 67 per cent of total Mineral Resources now classified as Measured and Indicated, up from 47 per cent previously.

The improved Resource category also provides AVZ with further certainty to production schedules and financial modelling for the 5 million tonnes per annum Scoping Study currently underway.

“This resource upgrade represents another major step forward in the company’s plans for development of the Manono project,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“This update provides further assurances as to the demonstrated world-class scale, grade and nature of the Manono project.

“We are encouraged by the results of the upgrade in resource categories which were expected given the results of the drilling program.

“This ongoing work shows us that Manono will continue to grow significantly and will be underpinned by a high-grade Measured and Indicated Mineral Resource for the majority of the Roche Dure pegmatite drilled to date.

“The greatly increased confidence level in sections of the Roche Dure Mineral Resource is more than sufficient to support the production schedules and financial modelling within the 5 million tonnes per annum scoping study, which is now close to completion.

“With Manono confirmed as the world’s largest lithium deposit, we are increasingly confident that the project will continue to develop into production and potentially become a world leading source of lithium and tin.”

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com.au

 

AVZ Minerals Achieves Encouraging Results at Carriere de l’Este

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THE DRILL SERGEANT: AVZ Minerals (ASX: AVZ) reported results from Mineral Resource drilling undertaken at the company’s Manono lithium and tin project in the Democratic Republic of Congo.

AVZ Minerals received the results from the final two of six reconnaissance drill holes it recently drilled at the Carriere de l’Este prospect.

The company said the results confirmed further widespread, high-grade spodumene lithium mineralisation, including 68 metres at 2 per cent lithium oxide (Li2O) and 858ppm tine in hole CD18DD006.

Ninety samples returned values greater than 2 per cent including five individual samples grading greater than 4 per cent Li2O with the highest value being from hole CD18DD006 from 181 to 182 metres downhole grading 4.65 per cent Li2O.

AVZ interpreted the results from the latest drill holes to demonstrate grade continuity both down-dip and along strike at Carriere de l’Este with both holes starting in soil cover and confirming the presence of a ‘blind’ pegmatite in previously unknown strike extents of the main deposit.

“These last two holes drilled at Carriere de l’Este are of the same lithium grade tenor and intersection widths as those reported on previously – (19th February 2019),” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“Both holes five and six have drilled through high-grade zones averaging over two per cent lithium oxide, mineralisation which was also seen on holes spaced 200 metres along strike.

“Hole five for example generated 56 by one metre assays greater than two per cent lithium oxide with a maximum value in one sample of 3.97 per cent from 166 to 167 metres deep.

Hole six was comparable with 97 samples returning values greater than two per cent including five individual samples grading greater than four per cent lithium oxide which equates to each of the five samples containing in excess of 50 per cent spodumene.

“The highest value from hole six was from 181 to 182 metres downhole and reported 4.65 per cent lithium oxide.

“Carriere de l’Este is unlike Roche Dure in that it has higher-grade zones within well mineralised pegmatite suggesting a more classical zonation model for this large pegmatite.

“Depending on future drilling, this may open up possibilities for high grade blending with Roche Dure mineralisation to shorten pay back periods and is definitely worth considering as we move through the mining study phase currently underway.”

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com