ASX lithium share Winsome Resources Ltd (ASX: WR1) is down 3.1% during lunchtime trading, having earlier posted losses of almost 5%.
The ASX lithium explorer closed yesterday trading for $1.45 per share. Shares are currently trading for $1.405 apiece.
The stock is taking a tumble despite the company reporting positive lithium exploration results.
That looks to be partly due to a broader market sell-down today, following the latest overnight interest rate increase from the US Fed.
ASX lithium shares are widely underperforming today, possibly on news of fast-falling lithium prices in China, the worldâs top EV producer.
What did the ASX lithium share report?
The Winsome Resources share price isnât getting a boost despite the company announcing it had intersected further high-grade lithium zones at its 100%-owned Adina project in Quebec, Canada.
The assays included several intersections in excess of 50 metres and above grades of 1% Li2O.
The ASX lithium share reported that one exceptionally high-grade zone returned 2.40% Li2O over 9.0 metres from 49.0 metres, while another returned 2.82% Li2O over 6.0 metres from 84.0 metres.
Commenting on the results, Winsome Resources managing director Chris Evans said:
Results from drilling are demonstrating that Adina is a robust lithium project well placed for development to supply future North American demand. We have intersected mineralisation on every drill section over a 700-metre strike length. More importantly the consistency of grade and width through the core of the deposit is very encouraging.
Assays have now been received from 21 out of the 38 drill holes completed to date.
Winsome is deploying a third drill rig to Adina in the coming weeks.
Winsome Resources share price snapshot
The past month has been a rough one for Winsome Resources, with the company’s shares down 30%.
Still, as you can see on the chart below, the ASX lithium share has been a winner for longer-term shareholders, up 204% over the past 12 months.
The post ASX lithium share Winsome Resources drops despite high grade results. Hereâs why appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Bernd Struben 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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