Why lithium miner AVZ Minerals (ASX:AVZ) is shooting higher today

The AVZ Minerals Ltd (ASX:AVZ) share price is on the move on Wednesday after the release of an update by the lithium miner…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AVZ Minerals Ltd (ASX: AVZ) share price is charging higher on Wednesday after the release of an update.

In early trade the lithium-focused mineral exploration company's shares are up 7.5% to 22 cents.

This latest gains means the AVZ Minerals share price is now up 175% over the last two months from 8 cents.

What did AVZ Minerals announce?

This morning AVZ Minerals revealed that it has successfully completed the preliminary metallurgical testing for its planned lithium sulphate plant and production of 1.5 kg of primary lithium sulphate material.

The company advised that it engaged Kingston Process Metallurgy (KPM) in Canada to test, at bench scale, each of the processes in its proposed Manono Lithium Sulphate plant flowsheet.

The test work objective was to produce primary lithium sulphate from Manono spodumene concentrate (SC6) and to demonstrate the technical feasibility of the flowsheet.

According to the release, the test work was undertaken from September to December 2020 at KPM's Kingston, Ontario, facility. Approximately 9kg of spodumene concentrate (SC6) from the Manono deposit assaying approximately 6.1% (Li2O) was processed.

After which, conversion of the alpha-spodumene to beta-spodumene was successfully completed, with the test results indicating a primary lithium sulphate product containing greater than 80 wt. % lithium sulphate monohydrate can be readily produced.

Management notes that this would make a highly suitable feedstock for the electrolytic production of lithium hydroxide monohydrate and ultimately lithium batteries.

AVZ's Managing Director, Mr Nigel Ferguson, said: "It is pleasing to have independent confirmation of our proposed lithium sulphate plant process as well as verification that our product is suitable for feedstock for battery plants."

"KPM's test work provides further confirmation that our high-quality Manono product is capable of producing clean Primary Lithium Sulphate that is suitable for use in the production of batteries," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Concept image of a businessman riding a bull on an upwards arrow.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors have been bidding up these four ASX 200 stocks this week. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Capstone Copper, Catalyst Metals, DroneShield, and Wildcat shares are rising today

These shares are having a strong finish to the week. But why?

Read more »

A man in a cardboard rocket ship and helmet zooms across the salt flats.
Materials Shares

Guess which surging ASX All Ords lithium share is smashing the benchmark again today

Investors are piling into this surging ASX lithium share again on Friday. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was yet another positive day for Australian investors.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Share Gainers

Why BHP, BlueScope, Catalyst Metals, and Ryman shares are storming higher today

These shares are having a better day than most on Thursday. What's going on?

Read more »

Winning woman smiles and holds big cup while losing woman looks unhappy with small cup
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy hump day for ASX shares.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why EBR Systems, Endeavour, Monadelphous, and Neuren shares are racing higher today

These shares are having a good session on Wednesday. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

Titan Minerals shares leaping 14% on Wednesday on 'spectacular' gold results

Investors are piling into Titan Minerals shares today following 'phenomenal' gold exploration results.

Read more »