The Talga Group Ltd (ASX: TLG) share price is rising on Thursday following the company's drilling results.
During afternoon trade, the battery anode company's shares are swapping hands for $1.54, up 11.59%.
What did Talga announce?
Investors are sending the Talga share price higher after the company reported further drilling results from its wholly-owned Vittangi Graphite Project in Sweden.
In its announcement, Talga revealed spectacular graphite results from six new drill holes of the 56-hole program completed earlier this year. As such, the latest downhole intercepts include:
- 90 metres at 30.8% graphite (Cg) from 155 metres (drill hole NUS21008);
- 43 metres at 30.9% Cg from 154 metres (drill hole NUS21007);
- 36 metres at 25.3% Cg from 80 metres (drill hole NUS21013); and
- 26 metres at 37.6% Cg from 159 metres (drill hole NUS21012).
The company noted that all holes have now been successfully intersected, targeting graphite units at the Nunasvaara South deposit. The program strategically identified growth targets across Europe's largest and the world's highest grade JORC graphite resource.
Recently, the European Union defined natural graphite as a 'critical mineral' for downstream refining into greener Li-ion battery anodes for electric vehicles. This undoubtedly will benefit Talga's integrated lithium-ion battery anode production facility which is under development in Sweden.
The company expects the remaining assay results from the drilling program to be received between December 2021 and early 2022.
Talga managing director, Mark Thompson commented:
The high grade and large scale of our 100% owned Vittangi graphite deposits are truly world class and provide a unique opportunity to make massive amounts of anode for batteries from minimal volumes of ore.
Across the length of the Nunasvaara South deposit, just 1 metre depth of extracted ore can feed 1 year of planned 19,500tpa anode production. This makes Vittangi a strategically important resource for global battery manufacturing and decarbonisation efforts.
Talga share price recap
In the back end of 2020, Talga shares accelerated to reach an all-time high of $2.15 following positive investor sentiment. However, since then, its shares have traversed mostly sideways, registering a loss of 13% in the last 12 months.
Based on today's price, Talga has a market capitalisation of $469.24 million, with 304.70 million shares on issue.
