- AVZ Minerals emerge from yesterday’s trading halt to announce a 5 million tonne per annum outlook at their Manono Lithium and Tin Project in the Democratic Republic of Congo
- A lifespan slated at 20 years, the company expects a 80.9 per cent recovery rate for lithium grades of 1.51 per cent
- The company will need funding between $380 million to $400 million and is currently looking into a mixed model of debt, equity and off-take financing
AVZ Minerals bring good news to shareholders today after releasing results of a scoping study from its Manono Lithium and Tin Project.
The project, located in the Democratic Republic of Congo, is expected to produce five million tonnes of lithium per annum.
Company Managing Director Nigel Ferguson says the results are excellent and underline an option to expand upon the project.
“Management will now turn its attention to selecting the optimal throughput level in conjunction with consultants working on the definitive feasibility study,” he said.
The project’s life span is outlined in the latest ASX release at 20 years. Lithium grades are currently estimated at 1.51 per cent with an 80.9 per cent recovery rate. A of 162 million tonnes of lithium resources have been indicated on site and 107 million tonnes have been inferred, for a total of 269 million tonnes.
The company stated the funding of $380 million to $400 million would be needed to sustain the 5 million tonnes per annum outlook on site. AVZ is currently looking into a mixed funding model of debt, equity and off-take financing.
The Manono Project is currently held in majority by AVZ at 60 per cent interest. 30 per cent interest is held by La Congolaise D’exploitation Miniere SA and the remaining 10 per cent is held by Dathomir Mining Resources SARL.
Yesterday the company entered a trading halt, right after their share prices shot 23.81 per cent in the market.
However, shares in AVZ did drop 9.62 per cent in the market this morning. Share prices currently sit at 4.7 cents in a $118.7 million market cap.