One of the best performers on the Australian share market this year has been the Avz Minerals Ltd (ASX: AVZ) share price.
In morning trade the mineral exploration company's shares are up 15%, bringing their year-to-date gain to a staggering 321%.
Why have its shares gone gangbusters this year?
The catalyst for this gain has been investor excitement around the company's acquisition of the Manono lithium project in the Democratic Republic of Congo in February.
Last month an independent review confirmed the world class potential of the project. Assay results of samples collected from reconnaissance trenches confirmed the presence of lithium mineralisation in pegmatites extending along a strike of over 13 kilometres.
Its shares were given a further boost this morning when the first of a seven-hole drill program returned its assay results.
According to the release, high-grade lithium mineralisation is present throughout the intersection of the Roche Dure Pegmatite.
This is undoubtedly a very promising start for the company and shareholders can now look forward to the results of the remaining six drill holes. These are expected to be released by the end of August.
Should you invest?
Whilst the early signs have been very promising, I would suggest investors hold off an investment until the results of all the drill holes are known.
While I am very bullish on lithium in the long-term, I would prefer to invest in an established miner like Galaxy Resources Limited (ASX: GXY) which is already generating significant amounts of free cash flow.
But I would still recommend keeping Avz Minerals on your watchlist with fellow junior lithium miner Kidman Resources Ltd (ASX: KDR). Both of these appear to have world class assets which could make them key players in the future.
