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

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sour end to the trading week this Friday.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why 4DMedical, Clinuvel, Life360, and Silex shares are pushing higher today

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

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Healthcare Shares

Up 2,075% in a year, why is the 4DMedical share price rocketing again on Friday?

Investors just sent 4DMedical shares surging another 20% on Friday. But why?

Read more »

A girl sits on her bed in her room while using laptop and listening to headphones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for the markets this Thursday.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Catapult, DroneShield, Infratil, and Qoria shares are charging higher today

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

Read more »

A group of happy young people watching sport on a laptop celebrate.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an exceptional session for investors today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today

These shares are having a better day than most on hump day.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today

These shares are having a solid session on Tuesday. But why?

Read more »