The Avz Minerals Ltd (ASX: AVZ) share price continued its strong run today and rose 15% to reach a new all-time high of 19 cents.
At the time of writing the lithium-focused mineral exploration company's shares have given back some of their early gains but still sit 10% higher at 18.2 cents.
Why are its shares at an all-time high?
This morning Avz Minerals released the results of its initial mineral characterisation investigations at its Roche Dure Pegmatite.
According to the release, the initial results support the potential for high value ore and the mean concentration of lithium carbonate is high and accompanied by a significant presence of tin. Management believes this confirms the potential for lower cost production.
Furthermore, the distribution of lithium grades follows a normal distribution, which confirms that the Roche Dure Pegmatite is essentially homogenous.
Positively, this means that it may permit a wider spacing of drill-holes to define a mineral resource, potentially reducing the lead-time from drilling to resource estimation.
Should you invest?
I've been very bullish on Avz Minerals this year and I feel these results go some way to justifying this.
However, with its shares at an all-time high and its market valuation approaching $320 million, I'm no longer a buyer of its shares.
While I think Avz Minerals could follow in the footsteps of Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS), I plan to hold back until the full extent of what lies beneath is measurable and offtake agreements are in place.
