In morning trade, the Core Lithium Ltd (ASX: CXO) share price is shooting higher.
At the time of writing, the Northern Territory-based lithium developer’s shares are up 8% to 27.5 cents.
Why is the Core Lithium share price shooting higher?
Investors have been buying Core Lithium’s shares this morning following the release of a very positive announcement.
According to the release, new geophysical surveys have successfully shown a strong correlation with lithium pegmatite distribution within its wholly owned Finniss Lithium Project.
The company notes that gravity geophysics is now considered an important tool for mapping lithium rich pegmatites within the Finnis pegmatite field.
The Finniss Gravity survey, which was co-funded by the Northern Territory Government, has identified a major NNE-trending gravity high and potential lithium-pegmatite corridor.
Management believes there is no reason to believe that these known lithium pegmatite groups are unique clusters. Rather, it believes it is far more likely that the currently defined distribution of pegmatites identified to date in this belt are due to large tracts of prospective ground which are covered by laterite or soil cover that have not been effectively explored yet.
Core Lithium will now commence with follow-up detailed gravity surveys during the current quarter over key target areas. The company notes that these areas have the potential to directly identify pegmatite drill targets and focus its upcoming exploration and drilling campaigns.
Core Lithium’s Managing Director, Stephen Biggins, said: “This new gravity survey, cooperatively co-funded with the NT Government, has shown to be a real gamechanger for lithium exploration in the NT. The Finniss Gravity Survey has identified new key target areas and we planning follow-up gravity surveys alongside our huge lithium exploration and resource drilling push starting in May.”
“In parallel with anticipated resource growth from the Project, Core is finalising key commercial and financial Project milestones to enable the Company to reach FID [final investment decision] next Quarter,” he concluded.