The Piedmont Lithium Inc (ASX: PLL) share price is reaching for the skies today after providing a resource estimate update.
At the time of writing, the lithium producer's shares are up 5.3% to 79 cents. However, optimism among investors was higher earlier in the session — hitting an intraday high of 85 cents apiece.
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Why is the Piedmont Lithium share price lifting?
The United States-based lithium company informed the market that its Quebec lithium resource estimates had doubled. Though, the increased lithium prospects are not directly a consequence of Piedmont's operations.
On Friday, Piedmont shareholders were reminded that the company made a strategic investment in fellow ASX-listed lithium explorer, Sayona Mining Ltd (ASX: SYA). The deal carried out in January last year means Piedmont owns a 25% interest in Sayona's North American Lithium (NAL) and Authier projects in Quebec.
As we covered earlier in the week, Sayona believes its lithium resource is now double its previous estimates. The revised estimate takes the mineral explorer to a 119.1 million tonne resource base at 1.05% lithium oxide. This evidently bodes well for the Piedmont Lithium share price.
Commenting on the development, Piedmont chief operating officer, Patrick Brindle said:
We are happy and excited for our partners. Sayona Quebec is one of the largest and best-located spodumene businesses in Canada and, as a past producer with the bulk of plant and equipment in place, we believe is also the most advanced at this time.
We look forward to Sayona's upcoming release of a new technical studies for both Authier and North American Lithium as we advance our plans to jointly restart spodumene concentrate production at North American Lithium in 2023 as the world's demand for electric vehicles and lithium hydroxide continues to accelerate.
The Sayona share price closed 11.1% higher on Tuesday following the news.
Despite the recent resurgence, the Piedmont Lithium share price is down 12.4% over the past 12 months.
