The company said the presence of mineralisation at shallower than expected depths was expected to improve the economics of the project, with an optimised DFS due for completion next month.
"Measured and indicated" resources grade 1.66% lithium oxide, with tin and tantalum also present.
AVZ is set to increase its financing efforts following completion of the DFS.
The project has previously been mooted as a circa US$500 million development.
Aside from the deposit, a big benefit in AVZ's favour looks to be the planned use of hydroelectric power that will lower the project's carbon footprint.
Shares in AVZ were unchanged at 15c in early trade, capitalising the company at A$436 million.
The stock is up about 60% on levels in mid-December.
AVZ started the current quarter with about $6 million cash.