The Core Lithium Ltd (ASX: CXO) share price has continued its positive run on Wednesday and is charging higher.
In morning trade, the lithium developer's shares are up 9% to 96 cents.
This means the Core Lithium share price is now up over 50% since the start of the year.
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Why is the Core Lithium share price shooting higher?
The catalyst for the rise in the Core Lithium share price on Wednesday has been the release of an update on the company's Finniss Lithium Project near Darwin.
According to the release, Core Lithium now has the results of a series of nine deep diamond drill holes which were completed at the Carlton deposit. These holes were drilled along strike to the south and down dip to test for the continuity of the pegmatite and mineralisation at depth.
The good news for shareholders is that eight of the nine holes intersected spodumene bearing pegmatite mineralisation. Management notes that these intersections support the current interpretation that the grade, consistency, and width of pegmatite intervals of the Carlton lithium mineralisation is improving with depth.
Based on this, it is expecting an increase in the mineral resource estimate for Carlton from the current estimate of 3.02Mt. Further drill assay results are expected in the coming weeks, with a resource update planned during the second quarter of calendar year 2022.
Core Lithium's Managing Director, Stephen Biggins, commented: "We are very pleased to see our targeted diamond drilling at Carlton bearing the positive outcomes that we anticipated. The Carlton deposit is a key component of the under-construction Finniss Project, and we look forward to delivering an updated Mineral Resource estimate in the coming months. This, in combination with the recommencement of exploration and resource drilling, is in line with our stated strategy of further expand the mine life of the Finniss Project."
