The Liontown Resources Limited (ASX: LTR) share price shot up more than 5% to an intraday high this afternoon. It has since retreated slightly to 45 cents a share, up 4.6% at the time of writing.
Today’s gain follows yesterday’s share price bump off the back of news detailing Tony Ottaviano’s appointment as CEO.
Liontown Resources is a battery metals exploration and development company with lithium discoveries at two projects. The company’s 100%-owned lithium assets at Kathleen Valley and Buldania are both located in Western Australia mining districts. The miner has a market capitalisation of $741.3 million and 1.8 billion shares outstanding.
Liontown share price soars after gold and copper results
According to Liontown’s latest announcement, the company’s Moora Project in Western Australia has returned multiple, highly anomalous gold and copper results.
The recent assays have defined at least three mineralised areas.
Highlights include achieving 12m @ 1.37 g/t gold from surface including 4m @ 2.92 g/t gold from 4m. Additionally, drilling discovered 37m @ 0.25g/t gold from surface and 13m @ 0.22% copper from 24m.
The Moora Project is located 150km from Perth in the same geological terrain as Chalice Mines Limited’s world-class Julimar PGE-nickel-copper-gold discovery.
Liontown managing director David Richards said that the results of the company’s Moora drilling campaign demonstrated potential for a large-scare discovery:
With a growing volume of drilling data from the project in the weeks ahead, we anticipate being able to move relatively quickly to further RC and, potentially, diamond drilling. If there is a big discovery to be made, we will leave no stone unturned to make sure we uncover it.
Drilling will recommence mid-February this year.
A snapshot of the Liontown share price
The Liontown share price has exploded more than 330% over the previous 12-month period.
One year earnings per share (EPS) growth currently weighs in at 25.5%.
According to the company’s Q420 activities and cash flow report, Liontown’s cash balance was $16.4 million as of 31 December 2020.
So, if you held a position for the past five years, the Liontown share price would have returned $3,350% on your investment.
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Motley Fool contributor Gretchen Kennedy 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 Bruce Jackson.
The post Here’s why the Liontown (ASX:LTR) share price hopped 5% today appeared first on The Motley Fool Australia.
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