Manono Project Mineral Resource increases 47% to 842Mt as Roche Dure tonnages expanded
Highlights ▪ Mineral Resource delineation drilling at Roche Dure adds a further 268 million tonnes (Mt) to the Manono Lithium and Tin Project (Manono Project). ▪ Mineral Resource update reinforces AVZ’s 75% owned Manono Project, one of the world’s largest hard rock lithium projects. ▪ Completion of Mineral Resource estimates following on the Early Works 2022 – 2023 53-hole diamond drilling programme for some 15,684.7m, generates the following: - A 47% increase in the Manono Project’s (Roche Dure and Carriere de l’Este) Measured, Indicated and Inferred Mineral Resource tonnage to 842Mt grading 1.61% Li2O, 709ppm Sn and 37ppm Ta containing 13.52Mt of lithium oxide. - A 67% increase in the Roche Dure Measured, Indicated and Inferred Mineral Resource tonnage to 669Mt grading 1.61% Li2O, 690ppm Sn and 33ppm Ta containing 10.79Mt of lithium oxide. - An 82% increase in the Roche Dure Measured & Indicated Resource to 500Mt at 1.63% Li2O, 755ppm Sn and 34ppm Ta containing 8.14Mt of lithium oxide and 377kt of tin. - An increased confidence level, with 75% of the Roche Dure Mineral Resource now classified as Measured & Indicated. ▪ In addition to Sn, Ta and Li2O, CSA Global estimated Fe2O3, a potentially deleterious element, at an average of 1.01% Fe2O3 for the Project. ▪ The Manono Project Mineral Resource includes all results from the FY23, 53- hole Early Works drilling programme added to the recently reported Carrier de l’Este Mineral Resource estimate1 .
▪ The higher confidence tonnages are expected to increase the potential life of mine as will expected decreasing waste to ore stripping ratios resulting from the significant flattening of the deposit in the northern 500 metres of the newly completed geological model.
1 Refer ASX announcement dated 18 December 2023 “Carriere de l’Este Maiden Mineral Resource Estimate”
ASX ANNOUNCEMENT 31 January 2024 AVZ Minerals Limited
2 | P a g e Important information regarding ownership of the Roche Dure deposit On the 28th December 2016, PR 13359 which authorises exploration and feasibility studies to be undertaken, was granted for a period of 5 years. On the 29th December 2016, PR13359 was transferred from La Congolaise d’Exploitation Miniere SA (Cominiere) to Dathcom Mining SA (Dathcom). On 4th May 2021, Dathcom applied to convert PR13359 into an exploitation permit (PE) which authorises mining. Upon lodging the PE application, PR13359’s term was extended indefinitely to allow determination of the PE application. Dathcom undertook the drilling of the Carriere de l’Este deposit pursuant to PR 13359 between 2017 and 2021. It also carried out further drilling of the Roche Dure deposit as part of its Early Works Programme in 2022 and 2023. Subsequently, disputes have emerged relating to the ownership of PR 13359. These disputes are the subject of various arbitration proceedings which are summarised in AVZ’s ASX announcements dated October 30th, November 2nd, 15th and 17th, December 19th 2023, and the 18th January 2024. The allegation that Manono Lithium SA holds PR 15775 over the northern portion of the Manono Project is without any legal foundation. This northern area includes the Carriere de l’Este, Malata and Kahungwe deposits, the rebuilt Colline Manono construction camp and administrative centre as well as the Dathcom core yard and core farm that hosts the sample library. AVZ maintains that Dathcom is the holder of PR 13359 in respect of the entire Manono Project (including both the southern and northern areas) and remains the applicant for a PE in respect of that land. AVZ has grounds to believe it has strong prospects of success and is confident of its position. The purpose of the ICSID proceedings which were commenced by AVZ on 8 May 2023 and registered on 8 June 2023 is to authoritatively establish this. On 18 January 2024, the Company announced the ICSID tribunal issued interim orders to the effect that the DRC take all necessary steps to reflect that Dathcom is the holder of PR 13359 (but excluding the northern area) and to protect AVZI, GLH and Dathcom’s rights during the pendency of the proceedings. The Company considers the unlawfulness of the transfer of PR 13359 from Dathcom to Cominiere, which has been reversed under the Interim Orders, renders Cominiere’s relinquishment of the northern portion of PR 13359 and the subsequent grant of PR 15775 to Manono Lithium SA to be equally unlawful. Accordingly, the Company will continue with its efforts to confirm its and Dathcom’s ownership of the northern area of the Manono Project either through its continued negotiations with the DRC government’s senior public officials or the prosecution of the ICSID and ICC proceedings to their conclusion. However, the Company’s board of directors considers the ICSID tribunal’s interim decision provides significant further impetus for a negotiated outcome. In light of the above, there is a reasonable prospect that a party, including the Company, will be granted a PE in respect of both the Roche Dure and Carriere de l’Este Mineral Resources. If Dathcom is granted a PE in respect of both the Roche Dure and Carriere de l’Este Mineral Resources, further negotiations will then be undertaken with the shareholders of Dathcom in relation to the terms of the mining joint venture.
AVZ Minerals Limited ASX: AVZ, OTC:AZZVF, (Company) or (AVZ) is pleased to announce it has updated the Mineral Resource of the Manono Lithium and Tin Project (Manono Project) after generating new results from the 2022 – 2023 drilling programme at the Roche Dure pegmatite (the Roche Dure Extension Drilling Project). AVZ’s Managing Director, Mr Nigel Ferguson, said: “The Roche Dure drilling was carried out to the northeast of the previous geological model as part of the Early Works Programme2 . This ‘bridging’ programme was established to maintain the project construction timetable that was committed to in the project’s Definitive Feasibility Study lodged with the DRC authorities. Subsequently, we received the required technical approval, leading to the Ministerial Decree to award the mining licence3 , which was later revoked4 .” 2 Refer to ASX announcement dated 10 February 2022 “AVZ commits A$25 M to early works & exploration drilling program for Manono Lithium and Tin Project” 3 Refer to ASX announcement dated 4 May 2022 “Ministerial Decree to Award the Mining Licence Manono Lithium and Tin Project” 4 Refer to ASX announcement dated 6 February 2023 “Issue of two new Ministerial Decrees Manono Lithium and Tin Project” 3 | P a g e “The completion of the Roche Dure drilling programme brings this study to a conclusion and has added a further 268 million tonnes to the Company’s overall Mineral Resource. Significantly, of this extra defined tonnage, an extra 216 million tonnes were added to the Measured and Indicated categories which may underpin future increases in mineable Ore Reserve re-estimates due to the relatively high level of confidence in the estimates of these new tonnages going forward.” Early Works Drilling Programme The objective of drilling along strike from the area of known mineralisation at Roche Dure was to expand the future economic opportunities associated with an increase of the Mineral Resource from its previous 401Mt @1.65% Li2O (AVZ ASX Announcement 24th May 2021 – Updated Mineral Resource Estimate Includes Pit Floor “Wedge” Drill Results). Figure 1 and Table 1 shows the extent of the Early Works Roche Dure extension drilling programme5,6,7,8,9 . The primary aim of the new drilling was to infill some gaps in the existing geological model towards the northeastern end where previous drilling remained incomplete due to access problems. The secondary objective of the drilling was to extend the drilling pattern along strike to increase the size of the Mineral Resource at a close enough pattern to generate mostly Measured and Indicated Mineral Resources. The addition of the 53 closely spaced diamond holes (Figures 1 and 2) generated a high level of confidence in the deposit model and resulted in a robust 82% increase in combined Measured and Indicated Resource tonnages at Roche Dure (Table 2).
AVZ Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
(20min delay)