ASX lithium share Kairos Minerals Ltd (ASX: KAI) is having a smashing week.
Despite falling 8.5% in intraday trading today, the Kairos Minerals share price is up a whopping 43% since the closing bell last Friday.
At the current price of 4.3 cents per share, that gives the ASX small-cap lithium share a market cap just north of $84 million.
So, why the big share price leap?
Whatâs piquing ASX investor interest?
Kairos isnât strictly an ASX lithium share. The company also explores for gold.
However, itâs worth noting that the company’s announcement on 30 August that its Mt York gold resource in Western Australia had increased by 26% failed to lift the share price.
As for the 43% share price gain over the past week, we suspect thatâs related to its lithium project, the Lucky Sump spodumene prospect, located in WAâs Pilbara.
In what was labelled a non-price sensitive announcement last Thursday, the miner reported itâs set to commence drilling at the prospect, where pegmatite samples containing up to 1.91% lithium oxide were uncovered during earthmoving activities.
On Wednesday this week, the ASX lithium share responded to the ASX price and volume query it had received following the huge run higher.
Kairos said it was not aware of any unannounced information which, if known by some in the market, would explain the big leap in its share price.
Citing its previous ASX releases, Kairos stated:
The company is currently actively exploring at its Mt York Project, Pilbara WA, where high-grade lithium assays have confirmed the significance of spodumene-bearing pegmatite at the companyâs Lucky Sump prospect.
Drilling is set to start at the Lucky Sump spodumene prospect aimed at following up the high-grade pegmatite samples discovered just 4km from Pilbara Mineralsâ Pilgangoora lithium-tantalum mine.
The ASX lithium and gold share also mentioned the 26% increase in its gold resource at Mt York, âdemonstrating that Mt York is a top-shelf WA gold project with genuine scale and ongoing growth potentialâ.
How has this ASX lithium share performed longer-term?
The Kairos share price is up 53% in 2022, compared to a 12% loss posted by the All Ordinaries Index (ASX: XAO).
The post Why is this small-cap ASX lithium share rocketing 43% in a week? 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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