AVZ Minerals Ltd (ASX:AVZ) (OTXQX: AZZVF) has committed to invest A$25 million in early work programs for the 75%-owned Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC) and advance a drilling program at the project's Roche Dure pegmatite deposit.
The funding comes from a recent $75 million capital raise and will be used to maintain progress through the Manono project timetable as the company awaits the award of a mining licence.
It will also fund a resource extension drilling program at Roche Dure deposit, with the potential to expand the previously reported JORC mineral resource of 400 million tonnes at 1.65% lithium oxide, including 264,550 tonnes of tin metal and 10,450 tonnes of tantalum metal equivalent.
- Approval of early works program to maintain project timetable pending award of Mining Licence
- Extension drilling program approved at Roche Dure, targeting potential expansion of JORC reserves
- Manono Project continues to receive wide ranging Government support for all outstanding permitting and licencing requirements
- Cornerstone investor fully supportive of all initiatives to advance the Manono Project and close the Transaction Implementation Agreement
“The drilling program has the potential to add significant value with respect to expanding the reserve life of the Roche Dure deposit, whilst also identifying high grade ore zones for initial feed to the plant, providing increased SC6 (spodumene concentrate 6%) production volumes from the start of operations," says MD Ferguson
Early work programs
The early works program to be undertaken in the second half of the 2021-2022 financial year constitutes about $19 million, which has been allocated to:
- Upgrade existing roads and bridges to assist with the transport of equipment to and from site;
- Purchase critical mobile equipment required for initial project development;
- Progress camp construction and enter key service contracts; and
- Progress various technical studies with respect to metallurgical test-work, downstream processing and infrastructure projects.
The remaining $6 million has been approved for additional resource drilling at the Roche Dure deposit.
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