Here's why the Charger Metals (ASX:CHR) share price is racing 6% higher

The lithium miner's shares are charging ahead today.

A boy dressed as a knight charges ahead on his toy horse

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Charger Metals NL (ASX: CHR) share price is surging today and is currently trading around 6% higher at 45 cents apiece.

Shares in the lithium and base metals explorer are gaining ground today after the company announced a key update.

Here's what we know out of Charger's camp today.

What was announced?

Charger advised it had obtained positive assay results from 3,034 soil samples taken from its Bynoe Project in the Northern Territory.

For reference, the Bynoe Lithium Project is Charger's 70% owned venture with Lithium Australia NL (ASX: LIT) and "is surrounded" by Core Lithium Ltd (ASX: CXO)'s Finnis Lithium Project.

Located within the Bynoe Pegmatite Field, the project is around 70km long by some 15km wide and is part of the much larger Litchfield Pegmatite Belt.

Pegmatite is a 'intrusive' rock containing hard-rock lithium deposits and other traces such as gemstones.

In today's release, the company advised that of the 637 assays received from sampling at the Bynoe site, it had analysed only 21% of sample results to date.

Yet, the first results already indicated "drill-ready targets at the centrally located Enterprise 1, Enterprise 2 and Bucks lithium trends".

The company also noted that mapping confirmed 9 clusters of pegmatites "forming within three north-easterly trending lithium zones some 4 kilometres wide".

Speaking on the announcement, Charger Metals managing director David Crook said:

Through mapping, Charger's geologists located many outcropping pegmatites, however others will be found, and the pegmatite's fertility indicated, through the use of geochemistry tailored for the discovery of lithium-caesium-tantalum (LCT) systems.

With the price of lithium setting new all-time highs again this week – it's gained $1,977/tonne since 8 October – it appears investors are seeking a piece of the action through mining players such as Charger Metals.

What's next for Charger Metals?

The company has yet to receive the remaining 79% of analysed assay samples to get the full scope of soil geochemistry results.

It has since started an aeromagnetic survey to trace the pegmatites better.

Charger will now prepare its primary targets identified above for drilling in early 2022.

Charger Metals share price snapshot

The Charger Metals share price has fallen 12.5% in the past month, but it still soaring 127% into the green since listing in July this year.

This is well ahead of the benchmark S&P/ASX 200 index (ASX: XJO)'s return over that time.

The author Zach Bristow has no positions 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.

More on Share Gainers

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors regained some confidence on the stock market today.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Baby Bunting, Bellevue Gold, Cettire, and New Hope shares are rising today

These ASX shares are having a good session. But why are investors buying their shares?

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Gainers

Here are the top 10 ASX 200 shares today

It was a shaky, but positive start to the trading week for ASX shares today.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Bannerman Energy, Cettire, TechnologyOne, and Zip shares are charging higher

These ASX shares are having a great start to the week. But why?

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
Share Gainers

If I'd put $5,000 into Zip shares on 9 October, here's what I'd have now!

The stars have been aligning for Zip shares.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an awful end to the trading week for ASX investors this Friday.

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Beach, Clinuvel, Deep Yellow, and EML shares are charging higher today

These ASX shares are ending the week strongly. But why?

Read more »

Man smiling at a laptop because of a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a fairly miserable day on the share market this Thursday.

Read more »