Australia's largest stock trading and investment forum Australia's #1 stock forum

AVZ avz minerals limited

0.00%

78.0¢

Running discussion on SP, page-1416

First 1416 Last

Share
Profile

Follow
kcheers

3,294 Posts.

421

18/04/18

01:41

Post #: 32512924
Share
Originally posted by lecram ↑

People need to read and re-affirm what AVZ is all about.
And stop worrying.

13 April 2018
Quarterly Report for the period ending 31 March 2018
ASX: AVZ
HIGHLIGHTS
Exploration at the Manono Lithium Project, DRC

20,000m drilling program commenced in early February with the aim to define an initial JORC

compliant mineral resource.

Significant down hole intersections of spodumene bearing pegmatite were recorded in drill

holes MO18DD001 with 295.05m*, MO18DD002 with 282.95m*, MO18DD003 with
313.88m*, MO18DD004 with 276.77m*, MO18DD006 with 284.30m* and MO18DD007 with
273.20m*; all confirming the thickness of the Roche Dure pegmatite within this zone.

All holes contain a high proportion of spodumene within the pegmatite.

Further drill core has been despatched for assaying while drill-holes MO18DD006, 007 and

008 have been logged and sampled and await dispatch to the sample preparation laboratory
in Lubumbashi.

Drilling of holes MO18DD009, 010 and 011 are progressing towards completion.

* Down-hole length. Additional drilling is required to confirm the true-thickness of the pegmatite.
Infrastructure at the Manono Lithium Project

Initial company investigations have been commenced and road rehabilitation works

commenced by China Railway and Engineering Company.

Further investigation of the railway transport system will be initiated in the next quarter.

2
Corporate

Completed a $15 million placement to a North American institutional client of Cantor

Fitzgerald Canada Corporation.

Raised an additional $0.43 million pursuant to the exercise of options.

Appointment of senior technical specialists, Mr Nigel Ferguson as Managing Director and Mr

Rhett Brans as a Non-Executive Director to strengthen the board.

Memorandum of Understanding signed with Guanzhou Tinci Materials Technology Co., Ltd

and Beijing National Battery Technology Co., Ltd (BNBT) for potential investment in the
Company and off-take opportunities for the Manono Lithium Project.

BNBT Chairman and due diligence team completed a site visit at Manono.

AVZ Minerals Limited (ASX: AVZ) is pleased to provide the following report on activities for the quarter
ending 31 March 2018.
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.
3
Figure 1: Location of the Manono Lithium Project licences in the DRC.
Exploration Activities
AVZ commenced a 20,000m drilling program at the Manono Lithium Project in early February and
engaged an additional drilling contractor (Equator Drilling) to ensure the completion of the initial
program by mid to late Q2 2018. Four drilling rigs were operational on site by mid-March with a fifth
rig mobilised from South Africa. Drilling production rates have increased significantly now that the
drilling companies have settled into the specific characteristics of the rocks they are drilling.
The drilling rig was set up approximately 90m east of drill hole MO17DD001 on line 700mN, at the
Roche Dure Pegmatite in the Kitotolo Sector. This allowed drilling beneath MO17DD001 to test depth
extensions and thickness of the Roche Dure Pegmatite.
4
AVZ reported results during the quarter, with drill-holes MO18DD003, 004, 006 and 007 confirming
the thickness of the Roche Dure pegmatite, intersecting 313.88m*, 276.77m*, 284.30m* and 273.20*
of pegmatite respectively. All drill holes contained a high proportion of spodumene within the
pegmatite. See Table 1 and Figure 2.
Hole
ID
Drill
Line
From
(m)
To
(m)
Length of
Intersection*
(m)
COMMENTS
MO18DD001 7000mN 62.00 357.05 295.05 Spodumene bearing pegmatite
MO18DD002 7000mN 63.20 346.15 282.95 Spodumene bearing pegmatite
MO18DD003 7000mN 59.01 372.89 313.88 Spodumene bearing pegmatite
MO18DD004 7000mN 54.00 330.77 276.77 Spodumene bearing pegmatite
MO18DD005 7000mN 82.00 85.50 N/A Terminated in hanging wall
MO18DD006 6900mN 76.80 361.10 284.30 Spodumene bearing pegmatite
MO18DD007 7000mN 93.90 367.10 273.20 Spodumene bearing pegmatite
MO18DD008 N/A 54.80 126.80 72.00
Spodumene bearing pegmatite in
Water Bore within camp site
MO18DD009 7100mN 44.50 In progress In progress; data not available
MO18DD010 6900mN 52.13 In progress In progress; data not available
MO18DD011 6900mN In progress
In progress; pegmatite not reached
yet
Table 1: Drill Hole details including geological intercept widths
* Down-hole length. Additional drilling is required to confirm the true-thickness of the pegmatite.
5
Figure 2: Schematic Cross Section - Line 7000mN, Roche Dure Pegmatite, Kitotolo Sector
As reported 6 April 2018, samples from holes MO18DD001 to MO18DD003 were in Perth awaiting
assay and expected to be reported by the end of April. The core from MO18DD004 was in Lubumbashi
ready to be sent to Perth and the core from MO18DD006, 007 and 008 had been logged, cut and
sampled for despatch from site to Lubumbashi soon.
6
Figure 3: Drill hole collar plan - Roche Dure Pegmatite, Kitotolo Sector
AVZ has four drill rigs on-site to increase the drilling rate, concentrating on the Roche Dure pegmatite.
The Company confirmed its drilling rate would allow an initial JORC resource calculation by late Q2
2018.
Investigation of the Carriere de l’Est Pegmatite
Fieldwork completed in 2017 suggested much of the outcrop of the southern part of the Carriere de
l’Est Pegamite is comprised of weakly weathered rock. This was confirmed by drill-hole MO17DD007.
The recent collection of 18 samples, many yielding high-grade lithium and tin assay results provided
further confirmation.
The presence of high tin grades in the weathered rock is a positive factor, as the value of the tin in the
weathered material may compensate for the expected lithium depletion of the weathered material.
A significant number of the samples were minimally weathered and the presence of a large volume of
unweathered rock at (or near) surface has important implications for defining a Mineral Resource and
is a highly favourable characteristic.
The encouraging results support the Company’s intention to follow the present resource-definition
drilling of the Roche Dure pegmatite as a priority, with drilling of the Carriere de l’Est Pegamite as a
secondary but very significant target.
7
Exploration Target
Based on detailed prospect scale mapping, trenching and drill results and given the size and
mineralised nature of the pegmatites at the Manono Lithium Project, AVZ generated an exploration
target of between 1.0Bt to 1.2Bt of 1.25% to 1.5% Li2O for the entire Manono Lithium Project, including
between 300Mt and 400Mt of 1.25% to 1.5% Li2O for the Roche Dure Pegmatite alone. It has also
generated an exploration target for a 1,200m strike portion of the Carriere De L’est Pegmatite of
between 200Mt and 300Mt of 1.25% to 1.5% Li2O.
The potential quantity and grade of the exploration target, as stated, is conceptual in nature as there
has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a mineral resource.
The Company is currently concentrating on drill assessment of the two main pegmatite sectors with
an initial primary focus on the Roche Dure pegmatite to be followed by the Carriere de L’Est pegmatite.
Work Planned Q2 - 2018

Completion of Phase 1 drilling program at the Manono Lithium Project is expected to be

completed mid to late Q2, 2018.

The calculation of JORC compliant resources anticipated late Q2, 2018.

Execution of the Phase 2 drilling program which will focus on increasing the confidence levels

of the initial resource estimate.
Infrastructure Update
AVZ can confirm that CREC9, the China Railway Engineering Company, has commenced work with an
initial investigation of the first 250km of road heading north from the junction with the Lubumbashi –
Kolwezi road. This sector of the road includes several bridges which will be upgraded and strengthened
to accommodate trucks of up to 40 tonnes. Additional work and inspection has been undertaken on
the 200km stretch on Manono side of the road. Remedial work was undertaken in the town and the
plan is to move forward with rehabilitation of the entire road when the wet season abates in April.
Concurrently, AVZ has initiated investigation of the railway access and possible use for exporting
product either through the traditional southern “copper cathode” route of Lubumbashi to South Africa
or indeed north, through Kalemie and to the port town of Dar es Salaam in Tanzania. Further
assessment will be undertaken in the next quarter with more detailed investigations being completed.
CORPORATE
Capital Raising
During the quarter, AVZ completed a $15 million placement to a North American institutional client
of Cantor Fitzgerald Canada Corporation. A total of 60 million shares at an issue price of 25 cents per
share, together with 30 million attaching options exercisable at 30.5 cents, expiring 24 months from
the date of issue, were issued under the placement. Funds will primarily be used for the planned
20,000m Phase 2 drilling and pre-feasibility programs at the Manono Lithium Project, as well as
ongoing corporate and administration costs. The securities were issued under AVZ’s existing
placement capacity in accordance with Listing Rule 7.1.
In addition, AVZ issued a total of 14,183,997 ordinary shares following the exercise of listed options
(at 3 cents each).
8
At 31 March 2018, AVZ’s cash balance totalled approximately $23.7 million.
Board and Management Changes
In February 2018, AVZ appointed senior technical specialists, Mr Nigel Ferguson as Managing Director
and Mr Rhett Brans as a Non-Executive Director as the Company prepares for completion of JORC
resource and a feasibility study for the Manono Lithium Project.
Mr Ferguson transitioned from the role of Technical Director to Managing Director and is responsible
for managing the daily operations of AVZ, with a focus on advancing the Manono Lithium Project.
Mr Brans is an experienced director and civil engineer with more than 45 years’ project development
experience. His strong experience in guiding feasibility work followed by planned development and
commissioning is a coup for the Company as it advances the Manono Lithium Project.
In March 2018, Mr Patrick Flint resigned as a Non-Executive Director.
Legal
As previously advised, in July 2017 MMCS Strategic 1 (MMCS) filed an amended claim (Claim) seeking
an order pursuant to the ASIC Act and the Corporations Act requiring AVZ to make announcements
to the market to correct what MMCS claims were misleading or deceptive announcements (or
announcements which were likely to mislead or deceive) made by AVZ concerning the Manono
licence.
AVZ firmly denied that any of its past announcements concerning the Manono licence were
misleading or deceptive or likely to mislead or deceive. AVZ can confirm that pursuant to Order 2 of
the Orders of Justice Chaney dated 3 April 2018, the proceedings were dismissed.
For further information, visit www.avzminerals.com.au or contact:
Mr Klaus Eckhof Mr Nigel Ferguson
Executive Chairman Managing Director
AVZ Minerals Limited AVZ Minerals Limited
Phone: +377 680 866 300 Phone: +61 8 9380 6789
Email: [email protected] Email: [email protected]
Competent Person’s Statement
The information in this report that relates to Exploration Results and Exploration Targets is based on
information compiled by Mr. Peter Spitalny, a Competent Person whom is a Member of the
Australasian Institute of Mining and Metallurgy. Mr. Spitalny is a full-time employee of Hanree
Holdings Pty Ltd. Mr Spitalny has sufficient experience that is relevant to the style of mineralisation
and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Spitalny consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
9
Information required under ASX Listing Rule 5.3.3
List of current mining and exploration tenements (as at 31 March 2018):
Country / Project Tenement Interest Status
DRC – Manono Project PR 13359 60% Granted
DRC – Manono Extension
Project PR 4029, PR 4030
100%
Granted
DRC - Katanga Regional
PR 12206, PR 12436,
PR 12449, PR 12450,
PR 12454, PR 12459,
PR 12461
60%
Granted
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 1
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
AVZ Minerals Limited
ABN Quarter ended (“current quarter”)
81 125 176 703 31 March 2018
Consolidated statement of cash flows Current quarter
$A’000
Year to date
(9 months)
$A’000

Cash flows from operating activities

1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation (2,621) (6,444)
(b) development - -
(c) production - -
(d) staff costs (151) (457)
(e) administration and corporate costs (635) (1,423)
1.3 Dividends received (see note 3) - -
1.4 Interest received 51 112
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Research and development refunds - -
1.8 Other (net GST/FBT activity) (41) (96)
1.9 Net cash from / (used in) operating
activities
(3,397) (8,308)

Cash flows from investing activities

(136) (1,006)
2.1 Payments to acquire:
(a) property, plant and equipment
(b) tenements (see item 10) (624) (624)
(c) investments - -
(d) other non-current assets - -
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 2
Consolidated statement of cash flows Current quarter
$A’000
Year to date
(9 months)
$A’000
2.2 Proceeds from the disposal of:
(a) property, plant and equipment - -
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing
activities
(760) (1,630)

Cash flows from financing activities

3.1 Proceeds from issues of shares 15,000 30,000
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options 426 3,506
3.4 Transaction costs related to issues of
shares, convertible notes or options
(825) (987)
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and
borrowings
- -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing
activities
14,601 32,519

Net increase / (decrease) in cash and

cash equivalents for the period
13,317 1,180
4.1 Cash and cash equivalents at beginning of
period
4.2 Net cash from / (used in) operating
activities (item 1.9 above)
(3,397) (8,308)
4.3 Net cash from / (used in) investing activities
(item 2.6 above)
(760) (1,630)
4.4 Net cash from / (used in) financing activities
(item 3.10 above)
14,601 32,519
4.5 Effect of movement in exchange rates on
cash held
4.6 Cash and cash equivalents at end of
period
23,761 23,761
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 3

Reconciliation of cash and cash

equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
Current quarter
$A’000
Previous quarter
$A’000
5.1 Bank balances 23,761 13,317
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of
quarter (should equal item 4.6 above)
23,761 13,317

Payments to directors of the entity and their associates Current quarter

$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 151
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
-
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
$A'000
Payment to directors and related entities – director fees and corporate
services (excluding GST)
84.5
Payment to director related entity – technical services (excluding GST) 66.5

Payments to related entities of the entity and their

associates
Current quarter
$A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
-
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 4

Financing facilities available

Add notes as necessary for an
understanding of the position
Total facility amount
at quarter end
$A’000
Amount drawn at
quarter end
$A’000
8.1 Loan facilities - -
8.2 Credit standby arrangements - -
8.3 Other (please specify) - -
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.

Estimated cash outflows for next quarter $A’000

9.1 Exploration and evaluation 6,000
9.2 Development -
9.3 Production -
9.4 Staff costs 150
9.5 Administration and corporate costs 500
9.6 Other (Instalment payment for the Manono Lithium
Project due in May 2018)
1,333
9.7 Total estimated cash outflows 7,983

Changes in

tenements
(items 2.1(b) and
2.2(b) above)
Tenement
reference
and
location
Nature of interest Interest at
beginning
of quarter
Interest
at end of
quarter
10.1 Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
- - - -
10.2 Interests in mining
tenements and
petroleum tenements
acquired or increased
- - - -
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 5
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: (lodged electronically) Date: 13 April 2018
(Company secretary)
Print name: Mathew O’Hara
Notes

The quarterly report provides a basis for informing the market how the entity’s activities have been

financed for the past quarter and the effect on its cash position. An entity that wishes to disclose
additional information is encouraged to do so, in a note or notes included in or attached to this
report.

If this quarterly report has been prepared in accordance with Australian Accounting Standards,

the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources
and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been
prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule
19.11A, the corresponding equivalent standards apply to this report.

Dividends received may be classified either as cash flows from operating activities or cash flows

from investing activities, depending on the accounting policy of the entity.

Expand

I did like this bit. Why would we make admission to misleading or deceptive announcements to to ASIC for appease MMCS? Thus they then could have a further case of litigation? vexatious fools

"Legal
As previously advised, in July 2017 MMCS Strategic 1 (MMCS) filed an amended claim (Claim) seeking
an order pursuant to the ASIC Act and the Corporations Act requiring AVZ to make announcements
to the market to correct what MMCS claims were misleading or deceptive announcements (or
announcements which were likely to mislead or deceive) made by AVZ concerning the Manono
licence.
AVZ firmly denied that any of its past announcements concerning the Manono licence were
misleading or deceptive or likely to mislead or deceive. AVZ can confirm that pursuant to Order 2 of
the Orders of Justice Chaney dated 3 April 2018, the proceedings were dismissed."
AVZ Price at posting: 21.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

HotCopper Highlights, Week 24: Israel boosts Energy; Meeka eyes production & Mag7 back

AVM

'Sure to be busy': Advance's Yuquivo drilling gets off to top start with first-hole hits

Week 24 Wrap: WW3 looms (again); US econ data tepid & silver surfing

ASX Market Open: Growing war fears to get Week 25 off to poor start | June 16, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

There are more pages in this discussion • 261 more messages in this thread...

First 1416 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.