AVZ Minerals Commences 20,000m Drilling Program
1 February 2018
AVZ Minerals Limited (“AVZ” or the “Company”) is pleased to announce that it has commenced a 20,000m drilling program at the Manono Lithium Project in the Democratic Republic of Congo (“DRC”). Equator Drilling’s (“Equator”) drill rig and associated drilling equipment has arrived at site and all preliminary preparation was completed over the past week with sumps being excavated, drill pipe being offloaded and site inductions completed for all personnel, see Images 1 and 2.
Image 1. Drill rig walking to the drill pad at Manono after unloading.
Image 2. Drill rig arriving at the proposed drill hole site as prepared.
The rig is set up on line 7000mN, approximately 90m east of drill hole MO17DD001, at the Roche Dure Pegmatite in the Kitotolo Sector, see Figure 1. The proposed drill hole location will allow drilling beneath MO17DD001 to test depth extensions and thickness of the Roche Dure pegmatite expected to be in the order of ~230m thick.
Figure 1. Location of proposed Drill Hole MO18DD001 beneath MO17DD001.
Equity Drilling Limited’s (“Equity”) drilling equipment has cleared customs and is now located in Lubumbashi, with ancillary equipment also at the Zambia/DRC border. A total of five drill rigs will be operational on site by mid-February and it is expected that JORC compliant resources will be calculated in early Q2 2018.
Technical Director Nigel Ferguson commented: “The arrival of Equators drilling equipment is a long-awaited milestone for AVZ which will allow the commencement of the initial 20,000m of a 40,000m resource drilling program. The arrival of Equity’s drilling equipment on site in mid-February will place five drill rigs operating at the project, to allow the calculation of JORC resources for the first time at Manono. We look forward to presenting additional updates on this work as results become available.”
AVZ Minerals Ltd is a junior mineral exploration company focused on developing the Manono Project located in the south of the Democratic Republic of Congo (DRC) in central Africa. AVZ has a 60 per cent interest in the Manono Project.
The Manono Project is potentially one of the world’s largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits. The Manono pegmatite extends for a strike length of at least 13km and is more than 240m thick in places. The Manono Project includes the historic Manono Mine, a pegmatite deposit mined for its tin content from 1919 to 1982.
The Company also holds a 100 per cent interest in the Manono Extension Project which surrounds the Manono Project.
In addition, AVZ holds a 60 per cent interest in the Katanga Regional Project which comprises seven exploration licences in the Kibaran Belt in southern DRC which are known to host lithium-bearing pegmatites.
AVZ listed on the Australian Securities Exchange (ASX) in 2007 under the code AVZ.
AVZ’s objective is to leverage its significant DRC, financial and project development expertise to advance the potentially world-class Manono Project up the value curve, and thereby create value for shareholders.
AVZ plans to achieve this by:
- Undertaking an aggressive evaluation and confirmation drilling program at the Manono Project in 2017/18
- Applying financial and technical expertise in advancing the Manono Project to feasibility and development.
In order to achieve this, the Company has a highly experienced management team with successful track record of project identification through to development in the DRC.
Board of Directors
Executive Chairman (Dip. Geol. TU, AusIMM)
Mr Eckhof is a geologist with more than 20 years of experience identifying, exploring and developing mineral deposits around the world. Mr Eckhof worked for Mount Edon Gold Mines Ltd before it was acquired by Canadian mining company Teck. In 1994, he founded Spinifex Gold Ltd and Lafayette Mining Ltd, both of which successfully delineated gold and base metal deposits. In 2003, Mr Eckhof founded Moto Goldmines which acquired the Moto Gold Project in the Democratic Republic of Congo. There, Mr Eckhof and his team delineated more than 20 million ounces of gold and delivered a feasibility study within four years from the commencement of exploration. Moto Goldmines was subsequently acquired by Randgold Resources who poured first gold in September 2013.
Mr Eckhof is also a director of Amani Gold Ltd, and Carnavale Resources Ltd.
Executive Director (BSc Geology, FAusIMM, MAIG)
Mr Ferguson is a geologist with 30 years of experience having worked in senior management positions for the past 18 years in a variety of locations. He has experience in the exploration and definition of precious and base metal mineral resources throughout the world, including DRC, Zambia, Tanzania, Saudi Arabia, South East Asia and Central America. He has been active in the DRC since 2004 in gold and base metals exploration and resource development.
Mr Ferguson is also Managing Director of Huntsman Resources, an unlisted public company.
Non-Executive Director (B.Com, CA, MAICD)
Mr Flint has been involved in the resources sector for the past 20 years as a director or company secretary of ASX and Toronto Stock Exchange-listed companies with mineral projects in Australia, Africa and Asia. He is a Chartered Accountant and has significant experience with project acquisitions, joint venture negotiations and management, fundraisings and corporate matters.
Mr Flint is also Company Secretary of Red Metal Ltd.
Mr Hongliang Chen is a nominee of the Huayou Cobalt Group to the AVZ Board. Mr Chen joined the Huayou Cobalt Group in May 2002 and is currently a director and the president of the parent company, Shanghai stock exchange-listed Zhejiang Huayou Cobalt Co Ltd. Mr Chen previously worked in management positions at the Agricultural Bank of China, Tongxiang Branch Investment Corporation Tongxiang Securities Department and Shenyin Wanguo Securities Co Ltd.
Mr Guy Loando is a qualified lawyer based in Kinshasa in the Democratic Republic of Congo (DRC). He has significant experience with corporate and legal matters in the DRC, and has recently been involved in executive management roles in the resource sector. Mr Loando has joined the Board as a nominee of AVZ’s largest shareholder, Dathomir Resources sarl. Mr Loando's role is to assist with liaison with AVZ’s joint venture partners and various local, state and federal Government departments as development progresses at the Manono Project.
Mr Mathew O’Hara is AVZ's Company Secretary. Mr O’Hara (BCom, CA) previously spent 12 years working at an international accounting firm in both the audit and assurance and corporate advisory divisions providing a range of services to listed, unlisted public and private companies operating in the resource sector.
Quarterly Report for the period ending 31 December 2017
8 January 2018
Exploration at the Manono Lithium Project, DRC
- Additional strike length confirmed through rock chip sampling of the Carriere De L’est pegmatite. Assay results for the rock-chip samples range between 1.43% and 4.46% Li2O, with an average of 3.11% Li2O.
- 20,000m drilling program expected to commence in mid-January, aiming to define initial JORC compliant mineral resources.
- Initial mineral classification and characterization test work of Manono drill core confirms main lithia host mineral as spodumene, with low levels of iron, fluorine and phosphorous.
Infrastructure at the Manono Lithium Project
- Agreement entered between a Chinese affiliated investor group and the DRC Ministry of Infrastructure, Public Works and Reconstruction for completion of rehabilitation and sealing of the road from Lubumbashi to Manono.
- Construction of AVZ’s field camp at Manono nearing completion.
- Completed the second tranche ($1.98 million) of share placement following receipt of shareholder approval in October 2017.
- Raised an additional $1.4m pursuant to the exercise of options.
AVZ Minerals Limited (AVZ) is pleased to provide the following report on activities for the quarter ending 31 December 2017.
MANONO LITHIUM PROJECT, DRC
AVZ’s interests in the Manono Lithium Project in the south of the Democratic Republic of Congo (DRC) (Figure 1) comprise:
- a 60% interest in PR13359, which covers approximately 188km2 and includes the historic Manono and Kitotolo Mines; and
- a 100% interest in licences PR4029 and PR4030 that surround PR13359 and provide an additional 242.25km2 of prospective area.
AVZ completed additional rock-chip sampling south west of hole MO17DD007 at the Carriere De L’est pegmatite and continued more detailed mapping of the entire project area. In addition, support works including construction of a base field camp for future exploration work has advanced considerably.
Mapping and Rock Chip Sampling
AVZ collected 12 rock-chip samples south-west of MO17DD007 in the spillway of the Likushi dam site. Extensive alluvium obscures any further potential rock chip sampling of the possible extension to the pegmatite, without substantial earth moving (Figure 2 and Figure 3).
Additional high grade surface results
confirm extension to Carrier De L’est Pegmatite
22 December 2017
Completion of infill and extension sampling and mapping has resulted in:
- A total of 12 rock chip samples being taken along the SW extension of the Carrier De L’est pegmatite and SW of the diamond drill hole MO17DD007 (intercept of 250.93m @ 1.48%Li2O, AVZ press release 18.09.2017).
- Results ranged from a minimum of 1.43%Li2O to a maximum of 4.46%Li2O for the 12 samples collected from fresh pegmatite. No lithium minerals other than spodumene were observed.
- The presence of lithium mineralisation within pegmatite in this area increases the strike length of the Carrier De L’est pegmatite by some 750m south of hole MO17DD007.
- Commencement of drilling to begin in mid January 2018. Additional drill rig secured to ensure initial 20,000m program and initial resource estimation completed by end Q1/early Q2 2018.
AVZ Minerals Limited (“AVZ” or the “Company”) has completed additional mapping and sampling to possible extensions to the major pegmatites both within the Manono and Kitotolo sectors in the south of the Democratic Republic of Congo (“DRC”). The additional work comprised more detailed mapping, pitting and grab sampling of pegmatites and submission of those samples to ALS Laboratories Perth for geochemical test work.
Mapping and Chip Sampling
The Company’s project contains two large areas of pegmatite, with the northeast area referred to as the Manono sector and the southwest area referred to as the Kitotolo sector.
Recent diamond drilling intersected significant thicknesses of lithium-mineralised pegmatites within both sectors.
Mapping has established that within the “extension corridor” area the Carrier De L’est pegmatite outcrops within an area of approximately 100m2 that is exposed in the spillway of the Lake Likushi dam.
Limited outcrop exposure to the south west of hole MO17DD007 was investigated further through pitting and chip-sampling (Figures 1 and 2) along the interpreted extension to the Carriere De L’est pegmatite.