An old article below but relevant to what is needed high quality battery grade lithium to make the electric vehicle/battery storage revolution possible:
https://unauthorised investment advice/resources/not-all-lithium-is-created-equal-why-avzs-congo-project-stands-out/
Special report:AVZ’s majority owned “Manono” lithium, tin and tantalum project in the Democratic Republic of Congo isthe world’s largest hardrock lithium deposit.
It’s also thesecond-highest grade discovered — with the lowest impuritiesas reported by official JORC compliant mining industry standards.
The brownfield site was discovered in 1910 and mined until 1982 for tin.
Fast-forward to August 2018 and AVZ has just reported a maiden mineral resource of 260 million tonnes of lithium graded at 1.63 per cent and 229,000 tonnes of tin. The resources will probably get bigger, given only half the total strike length at the Roche Dure prospect at Manono.
(Update:Resources increased 41.7% to 269Mt grading at 1.65% Li20. Furthermore, 67% of the Project’s tonnage is now classified at this level,(inferred 400 Mt's) establishing the Manono Projectas the largest Measured and Indicated Lithium hard rock resource globally!)
Only one of six massive pegmatites on the Manono-Kitotolo permits has been included so far.
What’s even more promising is AVZ has yet to go through the valuation uplift of JORC completion, scoping study, finance, mine development and cashflow production that many of its peers have received.
Does size matter?
Yesit does.However it isn’t just about the size of the deposit; it’s the quality.
Some lithium commentators such asBenchmark Mineralshave begun highlighting pricing as well as quality differences as critical in meeting new battery raw material specification requirements.
There are few lithium projects globallythat have low impurities of mica or iron-oxide that can meet the quality requirements for the next generation of batteries.
The two highest grade in the world — as well as the largest hard-rock projects — are Greenbushes in Western Australia and AVZ’s Manono.
The Greenbushes pit is nowmore than 500m deep whereas AVZ is at surface! — and has tin(tier one) as a by-product credit!
Manono was highlighted by Deutsche Bank in the first major investment bank report on lithium (figure 172) in May 2016, prior to AVZ acquiring or completing a JORC compliant resource.
While AVZ has the largest lithium and tin JORC compliant resource, this is expected to expand as the company has a 1 billion tonne-plus exploration target.
AVZ consultant Airguide, which regularly works alongside Chinese battery majors, believes“the market does not fully understand the specifications or requirements for raw materials required by the battery sector”.
That’s also reflected in recent comments by lithium majors.“Battery requirements are becoming more stringent and there is a definitive move towards higher energy density batteries,”Albemarle spokeswoman Hailey Cobb said.
This begs the question: what lithium impurities are okay for batteries, and what impurities may make the raw material unusable?
“[Battery makers such as] EVE and other companies are telling us thatthey can no longer use lithium that is derived from high mica sources, as they can’t produce a lithium concentrate suitable for the next generation of batteries,” Airguide says.
Mica is a mineral name given to a group of minerals that are physically and chemically similar. Lepidolite is a member of the mica group of minerals and is the most abundant lithium-bearing mineral.
There are significant differences in conversions to lithium carbonate or lithium hydroxide based on sources with high mica (lepidolite) compared to spodumene.
It is not just about comparing lithium companies on operating cost to produce lithium concentrate.
What also mattersis understanding the impurities, as this can have a significant impact on how many tonnes of concentrate are required to make one tonne of lithium carbonate or hydroxide!
AVZ’s spodumene from Manono hasNO MICA ISSUESas was reflected in AVZ’s metallurgical report.
AVZ’s recent metallurgy test work produced a 5.8 to 6.3 per cent concentrate,without any type of beneficiation processing or optimisation.That'sall very positive for AVZ. (since reconfirmed)
This was also historically independently verified in a Belgian Government study of the Manono project, which produced a 6.82 per cent lithium concentrate.
Older lithium batteries are running lower energy density requirements, which means they can use lithium sources with higher impurities.
However, impurities in the next generation of batteries results in battery failure or underperformance.
This is a key reason battery manufacturers need a high purity source of lithium.
“Right now, when everyone is doing their lithium supply analysisthey are making the mistake of saying that all lithium is equal in its ability to supply the battery sector; and it absolutely is not!,,” according to AirGuide.
“It is more than just a matter ofbetter pricing for high grade concentrate”.
Even if you did not believe this,the conversion table of quality spodumene to lithium carbonate or lithium hydroxide is clearly compelling!
“In our opinion, what we are hearing is over the next one or two yearsthose companies that produce concentrate with lower mica will command a higher premium compared to the operations that have a high level of mica in their raw material.”
To go back to Global Lit ETF....
Independently the penny has dropped and they realise what many wise heads on this forum have been saying for a long time, that AVZ has the potential to take the lithium space by storm with its superior easily mineable product of consistent high grade, low deleterious elements that are a processors and battery's wet dream!
This together with its size and tin credits(tier 1)/tantalum has the potentialto be the lowest cost producer and control lithium pricing and supply!, which is not just me saying this but has also been mentioned by Nigel Ferguson, Managing Director of AVZ!
What is also interesting is this enormous buy up of AVZ shares. This is very significant remembering we are not producing because funds tend to prefer producers! Therefore what does that say about what Global Lit think of the Manono project and how it may shape the lithium space in the future???
A LOT!!!
Another non producer which has over double our share price is not even in the fund; and that is LTR. I am not surprised, main ore body over 200 metres deep, veiny/non-homogenous deposit, no transparent metallurgicals; a lot of hype!
No thanks!
AIMO
