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

The lithium miner’s shares are charging ahead today.

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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.

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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.

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