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More pain for AVZ Minerals (AVZ)
Struggling Australian lithium hopeful, AVZ Minerals today suspended drilling after coming up empty in the final 36 of its 53 hole campaign at Manono in the Democratic Republic of China (DRC). The first 17 diamond drill holes were also disappointing.
AVZ CEO, Nigel Funston expressed disappointment at the drilling results, and said that the Chinese laboratory that tested the core samples assured him there was no lithium in any of the 56 samples sent for analysis. A laboratory spokesperson said that what initially appeared to be exposed pegmatites were in fact just valueless mica extrusions.
In 2022, AVZ Minerals was suspended from trading for breaches of ASX trading rules. Since then the company has been financially supported by its long-term partner Zijin Mining, and by the DRC government. Both entities reiterated their continued support for the company.
Both Zijin and the DRC government agreed that based on the analytical results, Manono appears uneconomic and no further drilling would occur at the site. The site would be mothballed until a buyer could be found. Representatives of Zijin Mining and AJN Resources, a Canadian listed explorer (TSX-AJN) said their companies would jointly step in to clean up the site and prevent it from falling into disrepair at no cost to the government. Security staff and heavy equipment, including excavators and haul trucks were already on site ready to commence the cleanup.
The DRC Mines Minister praised the community spirit of both companies, and said they represented the kind of responsible companies the nation is seeking to attract in order to spearhead its ambitious push for a place the global EV battery chain.
Mr Funston reiterated that although disappointed, Manono was just one of a suite of exploration tenements held by the company in mining friendly jurisdictions. Mr Funston said the company's focus would now shift to its exploration sites in Sudan and Somalia. Like the DRC, these nations have strong governance arrangements in place, and a commitment to the rule of law.
Tom Tosser