AVZ Minerals Ltd (ASX:AVZ) (OTCMKTS:AZZVF) (FRA:3A2) has received further strong results from mineral resource drilling at Manono Lithium and Tin Project in the Democratic Republic of Congo with 172 metres at 1.63% lithium and 1,134ppm tin returned from the pit floor 'wedge' at Roche Dure.
A nine-hole diamond drilling program for 1,654 metres is complete with sample preparation underway for transportation to Perth as soon as possible.
The strongest result was from hole MO20DD005 and the other hole, MO20DD009, returned 95 metres at 1.52% Li2O & 1,057ppm tin and 22.6 metres at 1.29% Li2O & 1,062ppm tin.
Pegmatite in these two holes was fresh from the pit floor and confirm strong spodumene mineralisation from the top of the holes.
AVZ is hoping to undertake a resource update, pending outstanding data being received, in the first quarter of 2021.
Moving to geological resource model
Managing director Nigel Ferguson said: “These latest drill results from the ‘wedge’ provide us with further confidence about the thickness and tenor of the mineralised pegmatite on the Roche Dure pit floor.
“We have now completed our targeted drill program of the pit floor ‘wedge’ with logging of all holes demonstrating thicknesses of pegmatite consistent with our current geological model.
“We look forward to reporting the assay results from our final three drill holes and moving on to revisit our current geological resource model.
“Our mine study will then be updated and our mining optimisation study refreshed using new data from multiple studies that have been completed since our original definitive feasibility study (DFS) published last year.”
Feasibility study expected late 2021
The potential benefits from confirmation of the wedge pit floor material as indicated resources under the JORC code will possibly include:
- Increased indicated resources available for conversion to probable mineable reserves;
- Potential increase in the discounted cashflow as the previously assigned waste becomes mineable ore;
- A potential reduction in payback period;
- A potential reduction in the ore:waste strip ratio;
- An increased mine life with lower operating costs;
- An increased open pit volume; and
- An increased life-of-mine.
AVZ will collate the data and re-run the models to calculate both geological resources and then mineable reserves to be fed into the optimised feasibility study expected later this year.