Forrestania (ASX:FRS) share price rockets 17% on lithium and gold update

A drawing of a white rocket streaking up, indicating a surging share pirce movement

The Forrestania Resources Ltd (ASX: FRS) share price is soaring 17.14% into the green during early afternoon trade and is now changing hands at 41 cents.

Forrestania shares are on the move after the company announced a key update regarding its Forrestania project.

Here’s what we know.

Forrestania share price lifts on significant lithium target finds

The company advised that it had identified “significant new lithium target areas” based on testing done at the Forrestania site.

It used a technology known as “Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER)” to identify alteration footprints and target anomalies at the project.

ASTER technology is an instrument onboard NASA’s Terra satellite, which produces images of the Earth’s surface in 14 alternate wavelengths of the electromagnetic spectrum, per the release.

Forrestania is integrating the technology into its exploration targeting process, in order to rank and define areas of interest.

The release notes that Forrestania stumbled across a major ASTER lithium target anomaly, adjacent to the Wesfarmers/SQM MT Holland Lithium mine – a site labelled ‘world class’ by the company.

As a result of the testing outcomes, Forrestania proclaims that “outstanding lithium prospectivity (at the project) is supported by a substantial first-pass geochemical database”.

The next moves for Forrestania at the site involve “geological reconnaissance and field checking; and geochemical sampling” alongside other groundwork.

The company will release more on the results as they become available, as per the release.

Management appeared impressed by the news, and are optimistic about the new target find. Speaking on the announcement, Forrestania CEO, Melanie Sutterby, said:

The ASTER data presented in this release is a small but significant part of our exploration efforts at the Forrestania Project, which is a unique and prospective portfolio. Geologically, our package holds the potential to discover a range of commodities, including lithium, nickel and other speciality metals.

Sutterby also went on to add:

With its status as a world-class lithium province ascribed within the past decade, explorers have only just scratched the surface at Forrestania, and we plan to play a lead role in the development of the area.

Forrestania Resources share price snapshot

It’s been all systems go for the Forrestania Resources share price since listing last month.

In that time, initial investors have gained 115% on their investment, capturing another 30% this week alone.

The post Forrestania (ASX:FRS) share price rockets 17% on lithium and gold update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Forrestania Resources right now?

Before you consider Forrestania Resources, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Forrestania Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

from The Motley Fool Australia https://ift.tt/2YEfj9A

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s