Up 400% in 2021, why the Hawkstone (ASX:HWK) share price is rocketing 28% higher

The Hawkstone Mining (ASX: HWK) share price is going ballistic, up 28% in intraday trading and 400% in 2021. We take a look at why…

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The Hawkstone Mining Ltd (ASX: HWK) share price is going ballistic. Shares are up 28.2% in early afternoon trading, putting the Hawkstone share price gains so far in 2021 at more than 400%.

To put that in some kind of perspective, the broader All Ordinaries Index (ASX: XAO) is down 2.4% today and down 0.8% for the calendar year.

Today’s leap for the Hawkstone share price follows the company’s latest lithium mining results.

What did Hawkstone Mining report to send its shares flying?

In an ASX announcement this morning, the United States-focused diversified minerals explorer reported that initial results from metallurgical testing at its Big Sandy project in Arizona revealed lithium recoveries of 90%. Hawkstone reported it was able to remove iron, aluminium and magnesium, with minimal losses of recovered lithium values from leach solution produced from the mineralised material.

The company said its current test work is now focussed on removing sodium and calcium from the leach solution. If successful, this will produce a pure and concentrated lithium sulphate, opening the way to final processing and battery grade lithium carbonate.

Hawkstone engaged Hazen Research to complete the test work, using a 50kg sample of mineralised drill core from the 2019 Big Sandy drill campaign. Final results are expected by the end of February.

Commenting on today’s update, Hawkstone Mining managing director, Paul Lloyd said:

The company is pleased to announce the positive steps being made by Hazen Research in the completion of bench scale testing of the Big Sandy lithium mineralisation, with the aim of producing battery grade lithium and in the process developing a preliminary process flow sheet. With drill approval imminent at Big Sandy, the company will rapidly progress development of the project to realise its full economic potential.

Hawkstone share price snapshot

Just 2 weeks ago, on 14 January, you could have picked up shares of Hawkstone Mining for 1.0 cent each. Today, those same shares are trading for 5.0 cents. Or a gain of more than 380%.

Of course, that’s all water under the bridge now. But offering somewhat of an explanation for its recent impressive run higher, Hawkstone notes, “With Joe Biden now inaugurated as President of the USA, the global investment community has awoken to the potential value of ‘battery metals’.”

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Motley Fool contributor Bernd Struben 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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