AVZ Minerals Shares Climbs 8% on Reaching Project Milestone (ASX:AVZ)
The AVZ Minerals Ltd [ASX:AVZ] share price has risen this morning after the company announced that ‘successful’ resource drilling at the Carrier de l’Este pegmatite deposit within their Manono lithium-tin project had unearthed high-grade lithium and tin mineralisation.
The company plans to use these results to assist in targeting lithium-rich areas for further evaluation.
At time of writing, AVZ share price is trading at 27 cents per share.
Why is AVZ Minerals in the green?
The assay results come from four ‘step-out’ holes at the Carriere de l’Este pegmatite deposit located in the Democratic Republic of Congo.
According to today’s announcement, the pegmatite deposit is now confirmed at 1.2 kilometres in length.
As part of the program, AVZ drilled four ‘step-out’ holes in the region to find more high-grade spodumene-rich zones.
With all four widely-spaced holes returning lithium oxide and tin mineralisation directly beneath thin soil and laterite cover, AVZ is naturally pleased.
AVZ is now declaring that Carriere de l’Este may be on par with the Roche Dure deposit within the project.
Each hole returned significant intersections of more than 2% lithium oxide.
Detailed results include 12.05 metres at 2.41% lithium oxide and 735 parts per million tin, 21.09m at 2.1% lithium oxide and 943 parts per million tin, and 16.0m at 2.49% lithium oxide and 571 parts per million tin.
Outlook for the AVZ Share Price
With a market cap of $788 million, AVZ Minerals appears to be a strong contender in the global search and development of quality lithium resources.
It was only last week that AVZ reported several highlights for the quarter ending June 2021, including the securing of a 1,227 hectare staging site (set to be a major player in global exports) and reportedly ‘positive’ advancement of project financing discussions.
But with several other high-performing lithium miners on the ASX, it’s clear that this is a competitive space. And while good news is better than no news, it doesn’t necessarily mean AVZ will be a surefire winner.
Despite a potentially massive resource — risk factors for AVZ could include political turbulence in the region where Manono is located, and local factors related to the pandemic as COVAX struggles to make inroads on the African continent.
The outlook for AVZ could hinge on these types of factors.
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