The Core Lithium Ltd (ASX: CXO) share price is having a solid start to the week.
In early trade, the lithium minerâs shares were up as much as 11% to $1.07.
Core Lithium’s shares have pulled back a touch since then but remain up 6% to $1.02.
Why is the Core Lithium share price shooting higher?
Investors have been scrambling to buy the companyâs shares on Monday after it released an update on the Finniss Lithium Operation mineral resource.
According to the release, drilling completed as part of the ongoing Finniss Lithium Operation exploration program has led to its mineral resource estimate more than doubling from 4.37Mt at 1.53% lithium oxide to 10.1Mt @ 1.48% lithium oxide.
But it may not stop there. The company notes that further significant growth opportunities exist beyond currently modelled resource domains at Carlton, Ah Hoy, Hang Gong, and Sandras. In light of this, plans are now in place to continue its exploration efforts in 2023 and another update to the global mineral resource and ore reserve estimate for Finniss is underway.
Core Lithiumâs CEO, Gareth Manderson, was pleased with the news and remains very optimistic on the future. He said:
This upgrade is a credit to our exploration and technical teams, who are systematically exploring the Finniss tenements while the business moves into production. These results provide further confirmation of the prospectivity of Core Lithiumâs ground holding.
Importantly, BP33 remains open at depth. Exploration to extend mine life at Finniss and identify growth opportunities is a priority for the business, with an expanded drilling program for CY23.
As you can see on the chart below, it has been a volatile but successful 12 months for the Core Lithium share price. It is now up over 12% since this time last year.
The post Why is the Core Lithium share price soaring 11% today? appeared first on The Motley Fool Australia.
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More reading
- Here are the 10 most shorted ASX shares this week
- What’s happening with ASX 200 lithium stocks this week?
- Investing in ASX 200 lithium stocks? Hereâs why this 6% decline in China matters
- Why ASX 200 lithium shares are eyeing this surprising new Chinese move
- The Core Lithium share price has crashed 20% in February. What now?
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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