Why is the Anson Resources share price nosediving 8% on Friday?

The Anson Resources Ltd (ASX: ASN) share price has run out of steam on Friday.

In late morning trade, the lithium explorer’s shares are down almost 8% to 30 cents.

Why is the Anson Resources share price sinking?

Investors have been selling down the Anson Resources share price despite there being no news out of the company today.

However, it is worth noting that the company’s shares rocketed higher on Thursday. This could mean that profit taking is weighing on them today. Particularly given how the lithium industry is underperforming on Friday, with most lithium shares trading notably lower.

For example, the Lake Resources N.L. (ASX: LKE) share price is down 3.5% and the Pilbara Minerals Ltd (ASX: PLS) share price is down 2.5%.

What got investors excited yesterday?

The Anson Resources share price surged higher yesterday after the company revealed that it has discovered multiple new lithium-rich zones.

This follows recent resource definition drilling at the Cane Creek 32-1 well at the Paradox Lithium Project in Utah, USA.

Management advised that drilling at Cane Creek intersected lithium-rich brines in the additional Clastic Zones 45, 47, 49 and 51. This is on top of the recently reported lithium-rich brines in Clastic Zone.

The release notes that assay results from Clastic Zones 43, 45, 47 and 49 average 100ppm Li, which is ~17% higher than the average grade of Clastic Zones 17, 19, 29 and 33 included in the recent resource upgrade.

Another positive is that the supersaturated brines are chemically similar to those of the previously sampled Clastic Zones in other wells which already have indicated and inferred JORC Resources.

The post Why is the Anson Resources share price nosediving 8% on Friday? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX lithium shares having a stellar run on Thursday
• 3 ASX lithium shares that dropped by 12% or more on Monday
• Which ASX lithium shares are performing best in 2022?
• Anson Resources share price dives 8% after $50m capital raise
• Why is ASX lithium share Anson Resources on ice today?

Motley Fool contributor James Mickleboro 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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