The Red Dirt Metals Ltd (ASX: RDT) share price soared to a new all-time high today after the company released news from its Mt Ida Project. However, it has since plunged into the red.
At the time of writing, Red Dirt Metals' shares are trading for 82.5 cents, 0.6% lower than they were at the end of yesterday's session.
However, earlier today, the company's share price took off to reach 92.5 cents. That's a new record high for the company's stock and an 11.4% gain on its previous closing price.
So, what news inspired such a dramatic movement from Red Dirt Metals shares on Thursday? Let's take a look.
Spodumene found at Mt Ida Project
The Red Dirt Metals share price hit new heights after the company announced it had struck spodumene at its Mt Ida Project.
Semi-quantitative XRD analysis completed on one of the Western Australia project's drill holes found a pegmatite interval with up to 63% spodumene.
Of four samples taken from drill hole IDDD002, 1 housed 63% spodumene and another housed 52% spodumene. Additional results are still pending.
The company says the results are "an excellent beginning" to its understanding of the project.
Another drilling program is expected to start at the Mt Ida Project next week. Initially, the company is planning for it to be a 25,000-metre program. It will be completed with a mix of reverse cycle and diamond drilling.
Commentary from management
Red Dirt Metals' CEO Matthew Boye commented on the news that drove the company's share price to new heights today, saying:
Having now confirmed what we originally identified visually as spodumene being the dominant lithium bearing mineral from within the sampled interval in hole IDDD002 and that the mineral distribution fits an idealised pegmatitic model we are confident we are exploring a system with huge potential.
Red Dirt Metals share price snapshot
The Red Dirt Metals share price has been performing brilliantly on the ASX lately.
It is currently 203% higher than it was at the start of this year. It has also gained 256% since this time last year.
