The big lithium hits keep coming for AVZ Minerals; shares jump
Mining & Resources
Ka-ching... will Lachlan Star's new face take it to Africa?
AVZ Minerals has hit yet another thick intercept at its Manono lithium project in the Democratic Republic of the Congo.
AVZ (ASX:AVZ) shares climbed 9 per cent to 25c just after market open on Tuesday. The shares fell back slightly to 24c at Tuesday’s close.
The second hole of a 20,000m program was drilled down to a depth of 365.7m and intersected 282.95m of spodumene-bearing pegmatite with very similar characteristics to previously reported intersections.
Pegmatites are rocks formed from lava or magma that are the primary source of lithium. Spodumene is the main lithium bearing mineral mined from most hard rock lithium mines around the world.
“Geological logging has proven that Manono is substantial in size and recent surface rock chip assay results from the southern extension of the Carriere de l’Est Pegmatite confirms additional potential within this area,” chairman Klaus Eckhof told the market.
Rock chip samples taken from the Carriere de l’Est pegmatite have returned high grade lithium oxide of 4.33 per cent and up to 0.6 per cent tin.
AVZ is currently raising $15 million from a Canadian institutional investor to fund its aggressive exploration push at Manono.
“Resource drilling at the Roche Dure pegmatite is gaining momentum with the number of drill rigs onsite increasing and four rigs to be operational at site by mid-March,” Mr Klaus said.
“A fifth rig has been mobilised from South Africa.”