‘Thrilled’: Why this ASX critical minerals share surged 30% on Monday

One ASX critical minerals share is outperforming the S&P/ASX 200 Materials Index (ASX: XMJ) Index today.  

The Sarytogan Graphite Ltd (ASX: SGA) share price soared 30% today before retreating. Since midday, the share price has lost some of its earlier gains and is now trading at 46.5 cents, up 7%. For perspective, the ASX 200 Materials Index is 0.91% higher at the time of writing.

So what did this newly listed explorer announce today?

Why is this ASX critical minerals share rising?

Investors are buying up Sarytogan shares after the company delivered drilling results beyond expectations.

Sarytogan Graphite listed on the ASX in July. The company is exploring the Sarytogan graphite deposit in central Kazakstan.

Drilling intercepted with thick high-grade graphite at the first seven diamond drill holes. Graphite is on Australia’s critical minerals list.

In the future, Sarytogan will undertake metallurgical test work, update the mineral resource, and continue diamond drilling.

Commenting on the results, managing director Sean Gregory said:

Sarytogan is thrilled with this first round of drilling results that have exceeded expectations with broad intercepts of high-grade mineralisation in the Central Graphite Zone.

These outstanding results have the potential to significantly expand the already giant mineral resource.

The company has drilled 13 holes so far with six awaiting assay results. The updated mineral resource is forecast to be reported in quarter one, 2023.

Share price snapshot

The Sarytogan share price has exploded 145% since listing on the ASX and nearly 50% in the past week.

This ASX critical minerals share has a market capitalisation of about $30 million based on the current share price.

The post ‘Thrilled’: Why this ASX critical minerals share surged 30% on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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