Calidus Resources (ASX:CAI) share price leaps 5% on 'significant' find

Another bumper find from Calidus has investors piling in today.

| More on:
three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Calidus shares are tracking higher today after a company announcement
  • The company advised its 50%-owned subsidiary has intersected pegmatites that are bearing lithium oxide
  • In the last 12 months, the Calidus share price has soared by more than over 101%

The Calidus Resources Ltd (ASX: CAI) share price is racing higher today, up 5.06% to 83 cents at the time of writing.

Investors are responding well to a company announcement from Calidus today regarding a discovery by its 50%-owned subsidiary, Pirra Lithium.

Pirra Lithium, owned equally by Calidus and Haoma Mining NL, was formed last month to explore potential lithium assets over the Pilbara region of Western Australia. The Calidus share price has taken off since late 2021, as shown below.

TradingView Chart

Why is the Calidus share price tracing higher?

The company entered a trading halt on Monday pending an announcement about its lithium exploration results. Today, it emerged from the trading halt with the news that has sent the Calidus share price soaring.

The company advised the team at Pirra Lithium has identified a "substantial lithium-bearing pegmatite with a mapped strike length of more than 1km" in the Eastern Pilbara.

It collected 34 rock-chip samples and assay results show 0.66%-2.34% lithium oxide (Li2O). Two samples of "metasomatised country rock adjacent to the pegmatite" yielded 2.78% and 2.91% Li2O, respectively.

"Along each traverse, samples were collected 3-12m apart to ensure that all the main components of the pegmatite, including lepidolite- and spodumene-poor zones, were sampled," the company said.

With lithium prices up 600% year-on-year to all-time highs, even a whisper of potential lithium discovery has seen ASX lithium players shoot higher in recent times.

Lithium spot has gained 29% in the past month for instance, and is up 77% this year to date alone.

Following its latest findings, Calidus has planned an initial 2,500-metre reverse circulation (RC) drilling program to further test the pegmatite.

After initial discoveries, the company says it identified another possible separate body north-east of this location. As a result, an additional 40 rock-chip samples were collected and have been sent to the laboratory for priority assay.

Calidus also notes it has made applications for Programs of Work (PoW) and lodged heritage surveys to facilitate drilling, "targeting the June quarter of 2022".

Management commentary

Speaking on the results fuelling the Calidus share price today, managing director Dave Reeves said:

It is already clear that we are in the early stages of an exciting lithium discovery with both scale and strong grades. There is a compelling business case to accelerate exploration now we have confirmed lithium grades for this significant outcropping pegmatite.

Despite the pegmatite being located close to the Hillside – Marble Bar Road, there is no record of geological mapping or sampling in the area and the area has never been drilled. These results highlight the immense prospectivity of the large tenement package and rights owned by Pirra Lithium.

Calidus share price snapshot

The Calidus share price has soared more than 101% over the past 12 months and 32% this year to date.

During the past month, its shares prices have shot north by 26%. As a result, Calidus is front-running the broader indexes this year by a country mile.

Motley Fool contributor Zach Bristow has no position 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.

More on Resources Shares

a tired and sad looking bulldog sits at an office desk with a pen an paper on it and a cup of coffee with his head resting on the desk as he gives a mournful look to the camera.
Resources Shares

After crashing 50%, could this ASX All Ords stock rebound?

Such low starting valuations could help.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Why did the Fortescue share price fall 7% in October?

Let's review what happened with the ASX 200 mining giant in October.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Why did the BHP share price get hammered in October?

ASX 200 investors sent BHP shares sharply lower in October. But why?

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Gina Rinehart's empire raked in another $5.6 billion. Here's how

Resources and mining continue to dominate the Australian market.

Read more »

two men in business suits sit across from each other at a table with a chess board on it. Both hold their hands to their chins and look down in serious contemplation of their next move.
Resources Shares

'Not ruled out': Could BHP still buy Anglo-American?

This mega-deal might not be as dead as it looks.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Miner looking at a tablet.
Resources Shares

Here are the latest share price forecasts for Fortescue

Let’s unearth what analysts think could happen with this iron ore miner.

Read more »

A businesswoman ponders why her boat is sinking in the ocean.
Resources Shares

Lake Resources share price sinks on quarterly cash flow news

Let's take a look at the highlights of the company's Q3 update.

Read more »