Why is the Global Lithium share price powering ahead by 8% today?

asx share price increase represented by golden dollar sign rocketing out from white domes of lithiumasx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The Global Lithium Resources Ltd (ASX: GL1) share price is rocketing on Thursday following a drilling announcement from the company.

At the time of writing, the lithium explorer’s shares are up 7.95% to $1.29 apiece.

Global Lithium targets deeper depths at Manna

In its release, Global Lithium announced that drilling contractor, Mt Magnet has mobilised to the Manna Lithium Project to commence work.

Mt Magnet will use its diamond drilling rig to target pegmatites at depths below the reverse circulation (RC) drilling program.

The 4,000-metre program will be Global Lithium’s first diamond drilling campaign at Manna since its acquisition in December 2021.

Just last month, an initial 20,000-metre RC drilling program kicked off at the project by contractor Profile Drilling Services.

Global Lithium has expanded the mobile camp at the site to house the geology team and both drilling contractors.

The results from each of the drilling campaigns will be incorporated into the updated Mineral Resource later this year. Additional metallurgical test work is being planned for Q4 2022.

If the program delivers on its potential, the Global Lithium share price could receive a much-welcomed boost.

The Manna Lithium Project is located 100 kilometres east of Kalgoorlie in the Goldfields, Western Australia. Global Lithium retains an 80% interest in the project.

What did management say?

Global Lithium head of geology, Stuart Peterson commented:

The addition of the Mt Magnet diamond drilling crew to the Manna Lithium Project will enable the Pegmatites to be targeted to a depth that has never been reached before at this project.

The drilling information we gain from this program will enable the Company to look to expand the current lithium resource for the project and provide material for further metallurgical test work.

Mt Magnet is a highly experienced drilling contractor that I have worked with before in large-scale resource drilling programs and I am confident they will deliver this program on budget and schedule.

Global Lithium share price snapshot

Despite today’s gains, the Global Lithium share price has fallen 18% in a week. This comes off the back of 7 consecutive market days of losses followed by a sell-off across the lithium sector.

However, when looking at the past 12 months, its shares are up almost 400%.

Based on today’s price, Global Lithium presides a market capitalisation of roughly $224.56 million.

The post Why is the Global Lithium share price powering ahead by 8% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position 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 Scott Phillips.

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