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12 September 2017
AVZ Minerals intersects 235m @ 1.66% Li2O at the Manono Lithium Project
Highlights • Drill hole MO17DD001 intersects 235.03m* @ 1.66% Li2O & 1001ppm Sn at the Roche Dure Pegmatite from 24.5m – 263.9m including 3.47m of core-loss. • Drill-hole MO17DD001 was completed about 400m west-southwest, along strike of MO17DD002 and extends the proven length of the Roche Dure Pegmatite at the Manono Lithium Project to at least 2,100m. • Results from MO17DD001 are comparable to the results from MO17DD002, (202.8m* @ 1.57% Li2O from 65m, reported 28/07/2017), supporting the interpreted style and tenor of mineralisation at Roche Dure. • Drill-holes MO17DD001 and MO17DD002 are centrally located within an 800m long interval of the Roche Dure Pegmatite in which the pegmatite’s average true thickness is interpreted to be 200m and drilling has proven the pegmatite extends down-dip more than 250m and remains open. • The assay results for the samples from the Roche Dure Pegmatite included significant results for tin (Sn), with 37% of samples exceeding 1000ppm Sn and a peak concentration of 9110ppm Sn. • Manono exploration target upgraded to between 1Bt and 1.2Bt of between 1.25% and 1.5% Li2O. Drill results for MO17DD007 expected soon.
HOLE 1 - Hole 1 confirmed as having thick and high grade lithium with 235m@ 1.66% li20 ... with tin credits. Market has taken it in its stride as expectations of a good hole (and it is a good hole ) were matched. Given the prev mentioned trench results nearby the probability that hole 1 was high grade was very high (ie, as I said just like a bet on Winks! ). So a good confirming hole which will put some minds at ease I suspect but no surprise to me personally.
Of more interest to me was the released trench results and of course the surprise increase in exploration target statement prev from 400-800mt @ 1-1.5% Li2o to now 1.0-1.2bt @1.25-1.5% Li20. A massive increase on a already massive target and also with a lift of the lower case grade from 1% to 1.25%. This is the result I assume of an increased understanding of the deposit due to all trench results being received and analysed along with confirmation from the 6 holes drill hole results received. Its possible that this target statement is still conservative and may expand further with more results but lets wait and see.
So from the trench results at Carriere de L 'este and Malata (In trenches T10-13, T19-23 T25, T34) which shows wide spread occurrence li20 at Manono and in places pretty high grade (upto 3.79% Li20 in T12-13) and as stated sampled from relatively unweathered Peg. This is majorly important IMO as the "relatively unweathered" rock brought to the surface no doubt by recent seismic activity (that is recent in geological terms) affords us a "peek beneath the blankets" at what exists below the weathered zone.
To me the probability that there is significant lithium present in Hole 7 has increased dramatically I would say its very likely now. Also trench results that "were" suspiciously missing from the Manono sector were simply late and no selective reporting appears to have occurred which is good news and also will bring comfort to investors, it does to me. I was originally starting to get suspicious of the late results from hole 1 and 7 also but as this and the prev announcement have indicated it was simply due to logistics of getting core and samples to the lab.
So all in all a good report with confirmation of continuation, true width and grade on Roche Dura via Hole 1. All trench results in for Kitololo and Manono being received and confirming wide spread and high grade lithium at Manono (some near surface) and accompanied by a massive increase in the target resource statement in terms of tonnage and better grade expectations with 1% now being 1.25%. There is enough in this report to sustain and even increase the speculative valuation prior to Hole 7 being released IMO. ... but we will let the market digest the report and for the weaker hands to be cleared away before we advance in expectation of hole 7 next week and the subsequent drilling program due to start in weeks.
After hole 7 I expect there will be only a couple of weeks before the start of the massive phase 2 drilling program (100+ holes to be drilled?). Punters, I expect, will start getting positioned for the bigger drill program prior to beginning of drilling in early Oct then then again on the lead up to results. One can only imagine what hole after hole of +200m intersections of high grade peg will do to the price... All I can say is I expect we will be well north of where we are now
