The Kitotolo Lithium Project

 “An exciting project comprising large land-holding with demonstrated lithium mineralisation and visible pegmatite across significant areas of Project area in a field proven to host large high grade ore-bodies.” - James Sullivan, Head of Exploration

“An exciting project comprising large land-holding with demonstrated lithium mineralisation and visible pegmatite across significant areas of Project area in a field proven to host large high grade ore-bodies.” - James Sullivan, Head of Exploration

  • 70% interest in joint venture over Kitotolo Lithium Project, being formalised.
     

  • Along-strike from AVZ’s world-class Manono Project.
     
  • Project area contains numerous historical artisanal workings, focussed on cassiterite and columbite-tantalum mining.
     
  • Project area has not been subject to any modern exploration.
     
  • Initial investigations have identified spodumene in pegmatites across significant areas within Project area which are open in all directions and are considered to potentially extend for kilometres along a NE-SW trend.
     
  • Assays from rock and channel samples confirm high grade lithium mineralisation (up to 2.15% Li2O).
     
  • Aggressive exploration planned, initial phase to comprise trenching, test pitting and auger drilling of fresh spodumene in pegmatite (CY2017).

 Project located 40km SW of AVZ’s ‘world-class’ “Manona” lithium project and around 500kms due north of Lubumbashi, the capital of the Katanga Province in the south of DRC

Project located 40km SW of AVZ’s ‘world-class’ “Manona” lithium project and around 500kms due north of Lubumbashi, the capital of the Katanga Province in the south of DRC

Comprises Exploration Licence PR12453 and Mining License PE13247

  • Accessible by road and air: regular service from Lubumbashi to Manono.
     

  • Good infrastructure: airport, hospital, power.
     

  • Low Population Density: Estimated at ~30,000
     

  • Main Industry is Subsistence Agriculture

  • Government & Community supportive of Mining

 Along strike from AVZ’s ‘world-class’ Manona Lithium Project, which is considered to be potentially one of the largest lithium-rich LCT) deposits in the world.

Along strike from AVZ’s ‘world-class’ Manona Lithium Project, which is considered to be potentially one of the largest lithium-rich LCT) deposits in the world.

Lithium-rich LCT (lithium, caesium, tantalum) style mineralisation:

  • Historical records suggest that the pegmatite field extends over 500km from Kolwezi in the south-west to Kalemie in the north-east.
  • Force’s Kitotolo Project interpreted to overlay a large section of the pegmatite field.
  • Pegmatites in the field typically follow a NE-SW orientation.
  • Pegmatites in the region already identified to extend over several kilometres and across hundreds of metres wide.
  • Pegmatites are observed across significant areas of the Kitotolo Project Area.

Positive Due Diligence Findings

Due diligence investigation for acquisition purposes were undertaken in September 2017 and was carried out by James Sullivan, who previously oversaw AVZ’s due diligence assessment.

Mr Sullivan reported visible pegmatite and spodumene mineralisation across large sections of the Project area.

“Generally the pegmatite was observed as being near to surface, and underlying a regional lateritic cover, of between 0 and 6 metres in thickness.”

“Pegmatite style and mineralisation is extremely similar to that observed at AVZ’s Manono Project and my strong recommendation is to proceed with the acquisition notwithstanding that assay results from rock chip and channel samples had not been received at that time.”


High-Grade Lithium Identified

  • In early October 2017, assay results were received for the samples taken by Mr Sullivan during the due diligence site investigation.
     
  • The assays confirmed high grade lithium mineralisation (up to 2.15% Li2O).
     
  • The rock and channel samples were largely taken from a large artisanal pit in the north of the Project area.
     
  • Pegmatite occurrences were observed several hundred metres away from the pit both to the NE and SW and will be the subject of future testing.
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Initial Assay Results

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Exploration Plan – CY2017

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Phase 1:

  • Test-pitting –  11 lines at 100 metre intervals, with each line 1km long for a total of 121 test pits.
     
  • Centred around the large artisanal pit in the north of the Project area where spodumene in pegmatite observed and assays confirmed high grade lithium mineralisation.
     
  • Designed to cover a large area quickly and to expose bedrock geology for geochemistry sampling and gain structural information under the lateritic cover.
  • Assist in determining the length and width of strike extensions of the identified pegmatite, which is currently open in all direction and considered to potentially extend for several kilometres along a NE-SW trend.

Exploration Plan - Early 2018

Phase 2:

  • Follow-up infill trenching to add continuous geological understanding of in situ pegmatites and for sampling mineralisation across the exposed and inferred strike of the pegmatite trend.

Phase 3:

  • Further regional test-pitting and trenching using wider step-outs based on the results of Phases 1 and 2, also on the NE-SW trend.
  • This to assist in determining the regional strike length potential of the pegmatite mineralisation within the Project area.
  • The aim of the test pits and trenching will be to assist in reaching in situ bedrock below the lateritic cover for logging and geochemistry sampling, and to provide invaluable information to assist in future exploration phases, including drilling in 2018.

Next Steps & Future Activities

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Calendar Year 2017:

  • Formalisation of Joint Venture.
     
  • Commencement of Maiden Exploration Program (Phase 1).
     
  • Trenching, test-pitting and auger drilling to determine length and width of pegmatite evident in large artisanal pit in north of Project area, and lithium content of fresh spodumene in the pegmatite.

Calendar Year 2018:

  • Exploration results from Maiden Exploration Program.
     
  • Initial determination of strike length potential of the pegmatite mineralisation within the Project area.
  • Estimation of initial Exploration Target for the Kitotolo Lithium Project.
  • Maiden Drilling Program: to determine depth and lithium grade of pegmatites.

AVZ Resource's Manono Project

 Manono lies just 40 kilometres north-east of the Kitotolo Project.AVZ’s Manono Lithium Project is potentially one of the largest lithium-rich LCT (Lithium, Caesium, Tantalum) pegmatite deposits in the world.

Manono lies just 40 kilometres north-east of the Kitotolo Project.AVZ’s Manono Lithium Project is potentially one of the largest lithium-rich LCT (Lithium, Caesium, Tantalum) pegmatite deposits in the world.


AVZ's Manono Project Details

Work performed to date by AVZ has demonstrated that the Manono pegmatites extend for a strike length of 13km+ and are more than 200m wide and more 240m thick in places.

AVZ announced on 12 September 2017 that it had upgraded its exploration target to between 1Bt and 1.2Bt of between 1.25% and 1.5% Li2O.

AVZ’s Manono Project contains many pegmatites.  The two largest of these, Carriere de L’est and Roche Dure, are considered to be the two largest pegmatites in the world, and both larger than the famous Greenbushes Pegmatite in Western Australia.

Initial samples taken from outcrops of highly weathered pegmatite contained relatively low concentrations of lithium.

Subsequent trenching and more recently drilling of fresh pegmatite have returned extremely high concentrations of lithium.

AVZ’s Manono Project is thought to lie in a much larger pegmatite field extending as far as Kolwezi in the south-west to Kalemie in the north-east.

The project is 40 kilometres north-east of Kitotolo, the Pegmatite strike length was recorded at around 13 kilometres and the AVZ market has capitalised to the sum of $434 million.


Advantageous Global Location 

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Why Lithium?

Electric Vehicles: The critical elements in lithium ion batteries, the most commonly used, include graphite, cobalt, nickel, manganese and lithium, of course.

Electronics: The most commonly used rechargeable battery for electronic devices such as mobile phones, laptop devices, cordless power tools and digital cameras is the lithium ion battery due to its cost, weight and ability to conform to any size or space

Chemicals: Lithium based chemicals such as lithium carbonate, lithium bromide, lithium chloride, and lithium hydroxide are widely used in industrial applications including refrigeration, air-conditioning, manufacture of lubricants and aluminium smelting.

Glass & Ceramics: Lithium is widely used in glass and glass-ceramics including induction cooktops and cookware. Lithium ores are used in glass manufacture to lower melting/firing times and furnace temperatures and save energy, improve quality and glass strength.

Medicine: Lithium is used in a range of medicines to treat psychiatric illnesses including depression, bipolar disorder and other brain disorders.


Lithium - Historical Comparison

  • Lithium consumption globally has grown significantly since 2000.
  • Consumption grown 11% year-on-year over past 8 years.
  • Surging demand for rechargeable batteries for electric vehicles, electronic devices and power storage
  • 120,000 metric tonnes of Lithium consumed in batteries per annum
  • Demand set to increase rapidly with greater demand for electric vehicles.
  • 11% year-on-year growth of global lithium consumption.
  • >50% of lithium consumption due to demand for rechargeable battery.
  • 250,000 metric tonnes of lithium consumed every year.
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Electric Vehicles to Drive Demand

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Electric vehicles, once a concept, are now a reality as countries are setting near-term targets to ban petrol and diesel vehicles, including:

  • Norway (2025)
  • Netherlands (2025)
  • States in Germany (2030)

Britain, France and China are aiming to phase out sales by 2040.

Car manufacturers are following suit, with Volvo announcing it would only make electric or hybrid vehicles from 2019.

Other brands planning electric vehicles production by 2020 include:

  • Mercedes
  • BMW
  • Jaguar
  • Volkswagen
  • Audi
  • Hyundai
  • Ford