AVZ Minerals says it has notched a new record while drilling for lithium in the Congo.

The news, which comes a day after the company (ASX:AVZ) revealed that Klaus Eckhof had resigned as chairman, moved shares up 20 per cent to an intra-day high of 12c on Thursday morning.

The shares have gained 40 per cent in two days — though they’re still well down on their 37c one-year high.

Mr Eckhof spoke to Stockhead yesterday, revealing why he stepped down and saying AVZ had “a world-class resource coming out in the next four weeks”.

AVZ has been continuously reporting 200m-plus intersections — and today reported an intersection of 341.62m – the largest hit to date at its Manono project.

Drilling is taking place at a target called “Roche Dure” – which is one of the two biggest pegmatites at the site.

Pegmatites are rocks formed from lava or magma that are the primary source of lithium.

The intersection included an upper interval of weathered rock beneath which the fresh rock intersection was 302.1m at 1.54 per cent lithium oxide and 875 parts per million tin.

AVZ Minerals shares were given a lift this morning on the record drill hit.
AVZ Minerals shares were given a lift this morning on the record drill hit.

AVZ is preparing to release a maiden resource for the Manono project.

“The Roche Dure pegmatite continues to produce intercepts with excellent grades of lithium and tin,” boss Nigel Ferguson told investors.

“This bodes well for the calculation of the maiden JORC compliant mineral resource in July and ongoing drilling for the complete pegmatite body and updated resource calculations.”

JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.

Mr Ferguson told Stockhead previously that AVZ doesn’t plan to complete the whole 20,000m drilling program before it releases its first resource.

“Probably around 40 drill holes from the current drilling program will be used for the first JORC-compliant resource, which we will do in July.”

AVZ previously outlined an exploration target of between 300 and 400 million tonnes for the Roche Dure target.

Mr Ferguson says the initial resource will likely be a “healthy portion” of that target and will be followed up with a bigger resource about three months later, once the entire 20,000m drilling program has been completed.