Here’s why this obscure ASX mining share is exploding 87% on Monday

Little-known ASX mining share Odessa Minerals Ltd (ASX: ODE) is shooting the lights out today.

Odessa Minerals shares closed yesterday trading for 1.5 cents and are trading for 2.8 cents at the time of writing, up 86.8%.

Here’s what’s piquing investor interest in this tiny ASX mining share today.

Why is the Odessa Minerals share price on fire today?

The Odessa Minerals share price is shooting higher after the ASX mining share announced it has been granted two out of the three exploration licence applications at its Lyndon Project, located in Western Australia.

The Lyndon Project covers 606 square kilometres of the highly prospective Gascoyne Complex.

Odessa expects ministerial consent to transfer the two granted tenements from CRC Minerals Ltd under the Mining Act in the near future. The miner expects it will be granted the third exploration license inside the next month.

Commenting on the “excellent news,” Odessa executive director David Lenigas said:

Recently acquired historical lithium data includes an assay of 314 ppm lithium oxide. This highly significant result comes from a drainage sample collected immediately downstream of a cluster of outcropping pegmatites, and this area will be our initial focus for exploration over the coming months.

We are also highly encouraged by the recent rare earth element (REE) drilling results that Dreadnought Resources are getting from their Yin Prospect, which is located to the east of Lyndon.

The ASX mining share plans to kick off exploration at Lyndon for lithium, rare earth elements and copper-nickel.

The deal remains subject to shareholder approval.

How has this little-known ASX mining share been performing?

Odessa Minerals is a microcap stock and, as such, shares tend to be thinly traded. Though not today.

With today’s intraday lift factored in, the ASX mining share is up 45% over the past month. That compares to a 1% one-month loss posted by the All Ordinaries Index (ASX: XAO).

The post Here’s why this obscure ASX mining share is exploding 87% on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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