The Global Lithium Resources Ltd (ASX: GL1) share price is exploding this year.
The company's shares closed at $1.50 today, a 0.67% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 0.13% today.
Let's take a look at what has caused the company's share price to surge.
Image source: Getty Images
Why is Global Lithium having such a good month?
The Global Lithium share price has rocketed 57.89% since the market close on 31 December 2021. As my Motley Fool colleague Bernd reported last week, ASX lithium shares have benefited from skyrocketing prices and supply shortages of battery metal.
Global Lithium Resources is a lithium miner exploring the Marble Bar Lithium Project (MBLP) in the Pilbara region of Western Australia. The company also acquired an 80% stake in the Manna Lithium Project in Kalgoorlie at the end of the December quarter.
Today, the company revealed drilling has started at its flagship WA lithium project. This is the largest drilling program conducted by the company to date and will involve drilling 380 holes. While the Global Lithium share price did not move substantially today, it may be that investors have already priced in the company's drilling program at the mine.
What did management say?
Commenting on the announcement, Global Lithium chair Warrick Hazeldine said:
The lithium sector in the Pilbara has the potential to become this generation's mining success story in
Western Australia and deliver parallels to the growth achieved in recent decades by the region's iron ore
industry.Global Lithium has a significant opportunity to play a major role in this expansion at MBLP. Not only are we advancing an exciting project in a well-established mining region, but we have also secured a cornerstone strategic investor, Yibin Tianyi, to help drive development of this asset.
January 2022 updates
In late January, the company released its quarterly activities report. However, shares fell 11% on that day. The company reported a cash balance of $11.1 million and no debt. Exploration and evaluation expenses totalled nearly $1.3 million.
Global Lithium also stated it plans to undertake significant exploring activities at its Manna Project in 2022.
On 13 January, the company's shares elevated 15% on news of new appointments on its board. Ronald Mitchell was appointed executive director of markets and growth, while Greg Lilleyman took on the role of non-executive director.
Lilleyman has 30 years of international experience in the mining sector, while Mitchell has 25 years of industry experience including 10 years in the lithium and battery industry.
Share price snap shot
The Global Lithium share price has exploded by around 650% in the past 12 months. In the past month, it has soared 39%, while it has fallen 3% in the past week.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 4% over the past year.
The company has a market capitalisation of roughly $204 million based on its current share price.
