Here's why the Core Lithium (ASX:CXO) share price is shooting 9% higher today

Core Lithium's shares are on form on Wednesday…

| More on:
A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding

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

  • Core Lithium shares are shooting higher on Wednesday.
  • This follows the release of positive drilling results at the Carlton deposit at its Finniss Lithium Project near Darwin.
  • Management believes these results point to a mineral resources upgrade.

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.

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."

Motley Fool contributor James Mickleboro 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 sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »