Here's why this ASX lithium share is soaring 10% today

ASX lithium share Sayona Mining (ASX:SYA) is rocketing today, up 10% in early afternoon trading. We take a look at the company's latest news.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published March 11, 2021 12:36 pm AEDT

ASX lithium share Sayona Mining Ltd (ASX: SYA) is rocketing higher today. After posting gains of 20% in earlier trading, Sayona shares are currently sitting at 32 cents, up more than 10% for the day so far.

Below, we take a look at the emerging ASX lithium miner's latest announcement regarding its Tansim Lithium Project.

asx share price rise represented by man holding bunch of balloons soaring through the air — Image source: Getty Images

What's driving this ASX lithium share higher?

The Sayona share price is surging after the company reported it has acquired 90 new claims around its emerging Tansim Lithium Project in Quebec, Canada.

Lithium is a core element in modern batteries, like lithium-ion batteries. And Sayona noted that demand for lithium is accelerating alongside the growth in global battery demand.

With the new claims, Sayona now has 275 claims at its Tansim Lithium Project, covering more than 15,900 hectares. That's an increase of 44% from its previous holding.

The company plans to start a drilling program encompassing 26 holes, with the aim of expanding the lithium mineralisation. Sayona reported the results of its earlier diamond core drilling program on 27 January.

The ASX lithium miner also revealed the appointment of Yves Desrosiers as director of its Authier Lithium Project. Desrosiers previously held the role of vice president of mining operations for BlackRock Metals and served as COO and general manager at North American Lithium (NAL). The company noted that NAL is "currently subject to a bid from Sayona".

Sayona Quebec's CEO Guy Laliberte said, "We are now in an excellent position to advance from exploration to development and ultimately downstream processing."

Sayona Mining share price snapshot

Having not moved much for months, the Sayona share price really blasted off in early January. With today's intraday gains factored in, Sayona shares are up by more than 200% over the past six months. That compares to a gain of 14% on the All Ordinaries Index (ASX: XAO) over the same period.

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