Here’s why this ASX lithium share is rocketing more than 100% today

This ASX lithium share is steaming ahead on the market today.

Arcadia Minerals Ltd (ASX: AM7) shares are trading at 45.5 cents, a 133.33% gain. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is lifting 1.3% today. Core Lithium Ltd (ASX: CXO) shares are lifting 2.85%, while Pilbara Minerals (ASX: PLS) shares are up 2.6%.

So why is this ASX lithium share doing so well today?

Massive resource boost

Arcadia Minerals is exploring mostly battery metals at a range of projects. The company is looking for lithium, tantalum, nickel, copper and gold.

Today, Arcadia advised of a 560% boost to the JORC mineral resource estimate (MRE) at a key lithium project.

Arcadia is exploring the Bitterwasser Lithium-in-Clay Project in Kalkrand, Namibia.

The updated inferred MRE defined over the Eden Pan location is:

• 85.2 million tonnes at 633 parts per million (ppm) for 286,909 tonne (t) Li2Co3 (lithium carbonate equivalent)

Cyclone test work shows the potential to produce concentrate of 59.6 million tonnes at 817 ppm for 259,231t of lithium carbonate at the project.

The company is now planning to conduct large-scale test work. Arcadia is aiming to find out the best recovery process to potentially produce “battery grade lithium carbonate product”. The company will work with the University of Stellenbosch on this process.

Commenting on the news, CEO Philip le Roux said:

We’re encouraged by the significant increase in metal content at the Bitterwasser Lithium-in-Clay project, which is now equivalent to a 1% Li2O hard rock resource of 11.6Mt.

Arcadia Minerals share price snapshot

The Arcadia Minerals share price has soared 140% in the past year. In the year to date, Arcadia shares have surged 116.7%.

In comparison, the ASX 200 Materials Index is nearly flat in the past year.

Arcadia has a market capitalisation of about $21.25 million based on the current share price.

The post Here’s why this ASX lithium share is rocketing more than 100% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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