AVZ Minerals moves quickly to implementation phase at DRC lithium and tin project

AVZ Minerals Ltd (ASX:AVZ) has moved quickly from the study phase to the design and implementation phase at the flagship Manono Lithium and Tin Project in the DRC following a positive definitive feasibility study (DFS). Early works program planning is underway and companies identified during the DFS stage are being invited to tender for the various work packages required during the construction phase. Request for tender issued The first of these is the Request for Tender (RFT) for the process plant package at Roche Dure, which was issued to the market on May 8, 2020, and will close on July 24, 2020. Several companies that responded to the call for Expressions of Interest, or contributed during the DFS program and demonstrated their ability to carry out the construction of the plant, have been approached and invited to bid for the plant EPC contract. This contract is expected to be awarded in August 2020. Other tender packages are being prepared and will soon be released to the market when completed. Early works program Planning of the Manono early works program continues unabated. Colline Manono campsite which caters for up to 55 workers will be expanded this year to accommodate an extra 100 construction personnel during the expected 12-18 months required to build the plant and associated infrastructure. Other works such as the development of modern well-drained, access roads to and from the plant site will also be completed as part of this program. This will facilitate an immediate start for the construction crew when they arrive in Manono. The early works also include the building of a site office and fabrication workshop, which will allow the start of the Apprenticeship Training Program designed to select candidates for training and potential future employment. Due to ongoing COVID-19 travel restrictions, some of these proposed early works will be delayed until senior management can return to the DRC, which is in lockdown with no travel allowed. Application being prepared AVZ is also preparing an application to convert the Permis du Researche (exploration licence) into the Permit d’Exploitation (mining licence) concession. DFS results, ESIA reports, including the social development plan, and the draft Mine Closure Plan form the majority of this package of reports, that are required for the application to be submitted. It is anticipated that it will take a month to complete the application then several months for government approval to be received. The application is made jointly to the Department of Mines and the Department of Environment. SEZ discussions continue COVID-19 restrictions have also affected the discussions with the DRC Government about the tax regime proposed for the Manono Special Economic Zone (SEZ) that have also slowed but are still in progress. After signing an MoU for the SEZ on February 18, 2020, with the Department of Industry, confirming both parties’ determination to proceed to finalise discussions over the establishment of the proposed SEZ, the process has slowed. This is primarily due to the inability of personal meetings with government officials as well as the effective closure of government offices in Kinshasa. The negotiated inclusions in the proposed Manono Special Economic Zone, which will initially cover the project, the Mpiana Mwanga hydro-electric power station and the Manono to Kabondo Dianda road redevelopment and Lualaba River crossing, remain ongoing through AVZ's in-country DRC team. It is anticipated that a 3-day workshop proposed to be held in Kinshasa in late March will be quickly resurrected upon the lifting of the travel ban with all preparations being made via email and telephonic means to assist in curtailing any further delays. Roche Dure extension Exploration has extended surface mineralisation to the immediate southwest of Roche Dure. Surface exploration and sampling on wide-spaced lines 400 metres apart have provided early positive results for the likely extension of the Roche Dure pegmatitic ore body along strike from the open pit. The results have indicated at least five areas of elevated lithium index values, which also correspond with high nickel values and from this about 160 samples need to be assayed using “normal’ wet chemistry. These five areas have generated areas of potential mineralisation requiring field inspection and infill soil sampling. Director resignation AVZ has also received the resignation of Hongliang Chen as a non-executive director. Mr Chen, a nominee of the Huayou Cobalt Group, was appointed to the board following the completion of a $13 million placement in August 2017 which provided early support to the Manono project. AVZ chairman John Clarke said: “On behalf of the board, I thank Mr Chen and the Huayou Cobalt Group for their contribution to the company since their involvement in 2017. “The board wishes Mr Chen and Huayou well and every success in their future endeavours.”