PERTH (miningweekly.com) – Junior AVZ Minerals on Thursday announced a A$25-million investment into the early works and exploration drilling at its Manono lithium and tin project, in the Democratic Republic of the Congo (DRC).
The company told shareholders that the capital investment would assist in maintaining the achievement of the Manono project timetable, and would also fund an extension drilling programme at Roche Dure, with the potential to significantly expand the previously reported Joint Ore Reserves Committee-compliant mineral resource and ore reserves.
“This decision demonstrates the board’s confidence of receiving the support required to make the development of the Manono project a reality and, importantly, should maintain our project development timetable despite the award of the mining licence taking longer than we had previously anticipated,” said AVZ MD Nigel Ferguson.
“We are in close consultation with the DRC government authorities that are undertaking the mining licence assessment and are confident of delivering a favourable outcome for all stakeholders, most importantly the people of the DRC and our shareholders.”
“The drilling programme 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 production volumes from the start of operations.”
About A$19-million will be spent on the early works programme during the second half of the 2021/22 financial year, with funds allocated to upgrading the existing roads and bridges to assist with the transport of equipment to and from site, purchasing critical mobile equipment required for initial project development, progressing camp construction and entering key service contracts, and progressing various technical studies with respect to metallurgical testwork, downstream processing and infrastructure projects.
The remaining A$6-million was approved for additional resource drilling at Roche Dure.
A definitive feasibility study into Manono has estimated that it would produce around 700 000 t/y high-grade lithium and 45 475 t/y of primary lithium sulphate over a 20-year mine life.
The project is expected to require a capital investment of $545.5-million, which will include transport upgrades and the rehabilitation of the Mpiana Mwanga hydroelectric power plant, which would account for $41.85-million and $46.54-million worth of investment, respectively.