The Calidus Resources Ltd (ASX: CAI) share price is racing higher today, up 5.06% to 83 cents at the time of writing.
Investors are responding well to a company announcement from Calidus today regarding a discovery by its 50%-owned subsidiary, Pirra Lithium.
Pirra Lithium, owned equally by Calidus and Haoma Mining NL, was formed last month to explore potential lithium assets over the Pilbara region of Western Australia. The Calidus share price has taken off since late 2021, as shown below.
Why is the Calidus share price tracing higher?
The company entered a trading halt on Monday pending an announcement about its lithium exploration results. Today, it emerged from the trading halt with the news that has sent the Calidus share price soaring.
The company advised the team at Pirra Lithium has identified a “substantial lithium-bearing pegmatite with a mapped strike length of more than 1km” in the Eastern Pilbara.
It collected 34 rock-chip samples and assay results show 0.66%-2.34% lithium oxide (Li2O). Two samples of “metasomatised country rock adjacent to the pegmatite” yielded 2.78% and 2.91% Li2O, respectively.
“Along each traverse, samples were collected 3-12m apart to ensure that all the main components of the pegmatite, including lepidolite- and spodumene-poor zones, were sampled,” the company said.
With lithium prices up 600% year-on-year to all-time highs, even a whisper of potential lithium discovery has seen ASX lithium players shoot higher in recent times.
Lithium spot has gained 29% in the past month for instance, and is up 77% this year to date alone.
Following its latest findings, Calidus has planned an initial 2,500-metre reverse circulation (RC) drilling program to further test the pegmatite.
After initial discoveries, the company says it identified another possible separate body north-east of this location. As a result, an additional 40 rock-chip samples were collected and have been sent to the laboratory for priority assay.
Calidus also notes it has made applications for Programs of Work (PoW) and lodged heritage surveys to facilitate drilling, “targeting the June quarter of 2022”.
Management commentary
Speaking on the results fuelling the Calidus share price today, managing director Dave Reeves said:
It is already clear that we are in the early stages of an exciting lithium discovery with both scale and strong grades. There is a compelling business case to accelerate exploration now we have confirmed lithium grades for this significant outcropping pegmatite.
Despite the pegmatite being located close to the Hillside – Marble Bar Road, there is no record of geological mapping or sampling in the area and the area has never been drilled. These results highlight the immense prospectivity of the large tenement package and rights owned by Pirra Lithium.
Calidus share price snapshot
The Calidus share price has soared more than 101% over the past 12 months and 32% this year to date.
During the past month, its shares prices have shot north by 26%. As a result, Calidus is front-running the broader indexes this year by a country mile.
The post Calidus Resources (ASX:CAI) share price leaps 5% on ‘significant’ find appeared first on The Motley Fool Australia.
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