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Why the Avz Minerals Ltd share price is up 10% today

The Avz Minerals Ltd (ASX: AVZ) share price has been amongst the biggest movers on the local market in morning trade.

At the time of writing the mineral exploration company’s shares are up 10% to 16 cents.

Why are its shares higher?

This morning Avz provided an update on its drilling program at its promising Manono Lithium Project in the Democratic Republic of Congo.

According to today’s update, the company’s latest drilling result confirms that Manono is a world class asset in both size and grade.

Management has revealed that within the Roche Dure pegmatite it has now defined lithium mineralisation of greater than 1.5% lithium oxide over a defined strike length of at least 800 metres and an average 200 metres thickness.

As a result, it has upgraded its exploration target for the entire project to between 1 billion tonnes to 1.2 billion tonnes of 1.25% to 1.5% lithium oxide. This includes between 300 million tonnes and 400 million tonnes of the Roche Dure pegmatite alone.

Furthermore, management believes there is tin and tantalum mineralisation underground that could provide a significant economic benefit to the project.

Should you invest?

There’s no doubt that Avz Minerals has a world class and lucrative asset on its hands. Especially given the current outlook for lithium demand over the next decade.

But it is still a long way from production and generating sales, so investors would certainly have to be patient with this one.

For now, I would suggest investors keep it on their watchlist and consider gaining exposure to the lithium boom through Galaxy Resources Limited (ASX: GXY) instead.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.