The Kalamazoo Resources Ltd (ASX: KZR) share price had a positive day of trade on Thursday.
The mineral explorer’s shares jumped a massive 30% to 39 cents.
Why did the Kalamazoo Resources share price jump 30%?
The rise in the Kalamazoo Resources share price was a bit of a mystery. So much so, the company was hit with a speeding ticket from stock exchange operator ASX Ltd (ASX: ASX).
However, the mineral explorer’s management team were at a loss to explain why there was a sudden buying frenzy.
When quizzed about the rise, Kalamazoo confirmed that it was not aware of “any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.”
Nor was the company “aware of any other explanation.”
What else could it be?
It is worth noting that while Kalamazoo Resources has been known as a gold explorer previously, its recent foray into lithium has piqued the interest of some investors.
In July last year, the company reported the identification of significant pegmatite-hosted lithium mineralisation potential at Kalamazoo’s 100% owned gold and base metals DOM’s Hill Project, East Pilbara.
This operation is close to two of the world’s largest pegmatite-hosted lithium mines at Pilgangoora and Wodgina, which are owned by Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN), respectively.
Since then the company has entered into a joint venture with lithium giant Sociedad Química y Minera de Chile (SQM), which will see SQM earn an additional interest in mineral rights based on exploration activities.
Based on the Kalamazoo Resources share price performance, some investors may be optimistic that these activities will uncover something material in the near future.
The post This ASX lithium share just rallied 30% and copped a speeding ticket 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 Bruce Jackson.
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