The Vulcan Energy Resources Ltd (ASX: VUL) share price rocketed up to a record high earlier today based on an update on its Taro lithium asset. After jumping 19.28% to its peak of $1.98 this morning, the Vulcan share price has since retreated significantly. It's now trading up 2.11% at $1.69 at the time of writing.
What did Vulcan announce?
Vulcan released an updated and reclassified resource estimate for its Taro asset. The new estimate indicated that the Taro asset includes .83 million tonnes of lithium carbonate equivalent (LCE) at a grade of 181 milligrams per litre of lithium. This was based on the acquisition and interpretation of seismic and well data.
The company also announced:
- Taro inferred resource estimate revised upward to 1.44 million tonnes of contained LCE at a grade of 181 milligrams per litre of lithium
- Upper Rhine Valley project now estimated to contain 16.19 million tonnes LCE indicated and inferred with a grade of 181 milligrams per litre of lithium
The company will also include the higher resource estimates into its pre-feasibility study for the Upper Rhine Valley project. Vulcan aims to produce lithium hydroxide for electric cars with the lowest carbon dioxide equivalent footprint in the world from this "zero carbon lithium" project.
About the Vulcan share price
Vulcan Energy Resources is a lithium development company with assets in Germany. Vulcan has been listed on the ASX since 2018.
In the quarter to 30 September 2020, Vulcan Energy Resources spent $2.23 million on exploration and evaluation. The company had cash of $5.11 million at the end of the September quarter.
In September, former Tesla Inc (NADAQ: TSLA) director Jochen Rudat joined Vulcan as a sales and marketing consultant. Mr Rudat previously reported directly to Tesla CEO Elon Musk.
The Vulcan share price is up 1316.67% since its 52-week low of 12 cents, and 962.50% higher than the beginning of the year. The company's shares are up 1207.69% since this time last year.
