The Forrestania Resources Ltd (ASX: FRS) share price is soaring 17.14% into the green during early afternoon trade and is now changing hands at 41 cents.
Forrestania shares are on the move after the company announced a key update regarding its Forrestania project.
Here's what we know.
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Forrestania share price lifts on significant lithium target finds
The company advised that it had identified "significant new lithium target areas" based on testing done at the Forrestania site.
It used a technology known as "Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER)" to identify alteration footprints and target anomalies at the project.
ASTER technology is an instrument onboard NASA's Terra satellite, which produces images of the Earth's surface in 14 alternate wavelengths of the electromagnetic spectrum, per the release.
Forrestania is integrating the technology into its exploration targeting process, in order to rank and define areas of interest.
The release notes that Forrestania stumbled across a major ASTER lithium target anomaly, adjacent to the Wesfarmers/SQM MT Holland Lithium mine – a site labelled 'world class' by the company.
As a result of the testing outcomes, Forrestania proclaims that "outstanding lithium prospectivity (at the project) is supported by a substantial first-pass geochemical database".
The next moves for Forrestania at the site involve "geological reconnaissance and field checking; and geochemical sampling" alongside other groundwork.
The company will release more on the results as they become available, as per the release.
Management appeared impressed by the news, and are optimistic about the new target find. Speaking on the announcement, Forrestania CEO, Melanie Sutterby, said:
The ASTER data presented in this release is a small but significant part of our exploration efforts at the Forrestania Project, which is a unique and prospective portfolio. Geologically, our package holds the potential to discover a range of commodities, including lithium, nickel and other speciality metals.
Sutterby also went on to add:
With its status as a world-class lithium province ascribed within the past decade, explorers have only just scratched the surface at Forrestania, and we plan to play a lead role in the development of the area.
Forrestania Resources share price snapshot
It's been all systems go for the Forrestania Resources share price since listing last month.
In that time, initial investors have gained 115% on their investment, capturing another 30% this week alone.
