Guess which small cap ASX mining stock is rocketing 16% on ‘outstanding’ discovery

The Winsome Resources Ltd (ASX: WR1) share price has been among the best performers on the Australian share market on Thursday.

In afternoon trade, the small cap ASX mining stock is up 16% to $1.46.

Why is this small cap ASX mining stock rocketing?

Investors have been fighting to get hold of the lithium explorer’s shares today following the release of exploration drilling results. These are from the 100%-owned Adina Lithium Project in the Eeyou Istchee James Bay region of Quebec, Canada.

According to the release, recent exploration drilling has discovered a new high grade lithium zone 200m southwest of the current Adina Lithium Resource.

The company revealed that results from AD-24-170, drilled to the south-west of Adina Main, have returned an “outstanding” result of 61.5m at 1.62% Li2O. This include 24.0m at 2.82% Li2O.

Further drilling is now underway around AD-24-170 to explore the scale and orientation of this new pegmatite zone at Adina.

In addition, resource delineation drilling is continuing to provide excellent results in the central portion of the Adina Deposit at the project.

Work is also progressing on an update to the mineral resource estimate (MRE) for Adina, which currently sits at 59Mt at 1.12% Li2O, classified in the inferred category. Its next update is expected to include material in the higher confidence indicated category due to the closer spacing of drill data now available.

Furthermore, the small cap ASX mining stock advised that the updated MRE will be used in initial project studies for Adina, which will now consider operating scenarios both with and without the repurposing of the Renard Project and associated infrastructure for lithium concentrate production.

‘Globally significant’

Winsome’s managing director, Chris Evans, was pleased with the discovery. He said:

The discovery of a new zone of high-grade mineralisation 200m outside the current 59Mt Resource at Adina continues to open up the potential scale of Winsome’s globally significant lithium deposit in Quebec. In addition, we are also progressing work on an update to the Mineral Resource at Adina this Quarter which will feed directly into our project studies for Adina, including the evaluation of the new Renard processing and infrastructure opportunity. Furthermore, results from infill resource delineation drilling continue to confirm and verify previous drilling results at Adina Main including the presence of thick, high grade, near surface lithium mineralisation.

This small cap ASX mining stock is now up almost 60% since this time last month.

The post Guess which small cap ASX mining stock is rocketing 16% on ‘outstanding’ discovery appeared first on The Motley Fool Australia.

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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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