MENU

Why the Avz Minerals Ltd share price rocketed higher today

The Avz Minerals Ltd (ASX: AVZ) share price has been a huge mover on Thursday, climbing an impressive 11% to 30 cents.

This means the lithium-focused mineral exploration company’s shares have now risen 30% since the turn of the year.

Why are they higher today?

This morning AVZ Minerals announced the commencement of a 20,000 metre drilling program at its Manono Lithium Project in the Democratic Republic of Congo.

According to the release, the proposed drill hole location will allow drilling beneath the MO17DD001 drill hole in order to test depth extensions and thickness of the Roche Dure pegmatite which is expected to be in the order of 230 metre thick.

The MO17DD001 drill hole has previously revealed the presence of significant mineralisation which management believes indicates that it is sitting on top of a world class asset in both size and grade.

A total of five drill rigs will be operating on site by the middle of the month, with management confident that it will be able to provide an accurate mineral resource estimate early in the second-quarter.

Should you invest?

Whilst I do think that AVZ Minerals is likely to be a real star of the future in the lithium industry, I think the prudent thing to do is to wait for the results of its drilling program.

Until then it is difficult to know for sure whether the market is undervaluing or overvaluing AVZ Minerals. And with a market capitalisation nearing $500 million, its shares could come under significant pressure if the mineral resource is not as great as expected.

In light of this, I think investors would be better off with established lithium miners such as Galaxy Resources Limited (ASX: GXY) or Orocobre Limited (ASX: ORE) for now. Though it is worth noting that they too are higher risk investments also.

So if the lithium miners are too risky for your liking, then check out these fast-growing blue chip shares which I believe will beat the market this year.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!