Red Dirt Metals (ASX:RDT) share price launches 45% on lithium update

Shares in the Aussie resources company are surging on Tuesday

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The Red Dirt Metals Ltd (ASX: RDT) share price has rocketed 45% higher on Tuesday after a lithium update from the Aussie micro-cap company.

Why the Red Dirt Metals share price is up 45% on Tuesday

Red Dirt this morning provided an update on its Mt Ida Project area. The Aussie lithium miner announced multiple high-grade lithium results from historic drilling and surface rock chips.

Thick drill hole intercepts and rock chips with high-grade lithium assays were identified over a 5-kilometre strike extent on the western limb of the Copperfield Granite on the site.

Among the results reported was TIC0151 with 24 metres at 1.84% lithium oxide and 350 parts per million (ppm) tantalum oxide from 160 metres.

The Red Dirt Metals share price has rocketed 45% at the time of writing after reporting significant strike potential adjacent to Copperfield Granite, intrusive on both the western and eastern limbs.

The company reported diamond hole IDDD002 intersected 23.2 metres of spodumene bearing pegmatite from a depth of 252 metres and 50 metres down-dip below TIC0121.

All of this to say that there were promising results for the Mt Ida lithium reserves which have sparked the group’s shares higher on Tuesday.

The latest results are part of the company’s due diligence on the Mt Ida project. While reviewing the data, the company has identified 44 drill holes to date that have either been logged with pegmatite occurrences or have been assayed incidentally for lithium as part of a “multi-element analysis”.

The news has been welcomed by shareholders with the ASX resources share rocketing 45% higher on Tuesday afternoon.

Foolish takeaway

The Red Dirt Metals share price is on the move on Tuesday following its latest lithium update. The Aussie company currently boasts a market capitalisation of $60 million following today’s surge with company shares up 68.5% year to date.

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Motley Fool contributor Ken Hall 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 Bruce Jackson.

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