The Global Lithium Resources Ltd (ASX: GL1) share price is continuing to decline today. This comes amid the company announcing positive lithium assay results.
At the time of writing, the lithium explorer’s shares are swapping hands for 60 cents apiece, down 6.98%. This means that over the last two days, its shares have fallen by around 13%, almost erasing the 15% gains made on Tuesday.
Global Lithium points to significant extension opportunity
The Global Lithium share price is sinking today after accelerating in value by more than 40% in the past month alone.
In this morning’s release, Global Lithium announced it has received significant lithium assay results from its ongoing CY4Q Exploration Program at the Marble Bar Lithium Project (MBLP).
The site is located around 150 kilometres southeast of Port Hedland in the Pilbara Region of Western Australia. MBLP is situated close to major roads, with direct links into Port Hedland for shipping bulk commodities, including spodumene concentrate.
Global Lithium has a 100% controlling interest in MBLP.
The first 14 reverse circulation (RC) holes, totalling 1,770 metres of drilling, returned strong spodumene lithium results. This highlights multiple lithium intersections lay within MBLP and validates potentially developing the area and extending the Archer deposit.
The assay results included the following:
- 14 metres at 1.14% of lithium oxide (Li2O) and 44 parts per million (ppm) of tantalum pentoxide (Ta2O5) from 11 metres in drillhole MBRC0181;
- 8 metres at 0.97% Li2O and 53 ppm Ta2O5 from 51 metres in drillhole MBRC0182;
- 12 metres at 0.64% Li2O and 50ppm Ta2O5 from 54 metres in drillhole MBRC0177; and
- 4 metres at 1.55% Li2O and 70ppm Ta2O5 from 37 metres in drillhole MBRC0174.
The company noted the CY4Q RC drilling program has completed 74 holes for 7,995 metres to 23 November. The majority of samples that have been sent to the laboratory are yet to be assayed.
RC drilling is planned to run until early December, with the remaining assays expected in the first quarter of 2022.
What did management say?
Global Lithium managing director Jamie Wright commented:
Our drilling earlier in 2021 and our subsequent targeting all suggested that the Marble Bar Road reserve offered significant exploration potential. We have been excited by what we have been seeing in this area and these initial assays clearly demonstrate the growth potential of the MBLP.
Whilst only a small portion of assays have been received to date, the results we are seeing are very encouraging. The initial assay results, combined with the discovery of a new pegmatite zone within the road reserve so close to Archer, certainly highlights the underexplored nature of the MBLP.
Global Lithium share price summary
Despite falling the last two days, Global Lithium shares have surged around 200% since listing on the ASX in May.
Its shares reached an all-time high of 81 cents earlier this month, before treading lower in the last few weeks.
Global Lithium presides a market capitalisation of roughly $64.16 million and has more than 108.75 million shares on its books.