Surging again: Why has the Sayona (ASX:SYA) share price rallied 46% in a month?

This lithium share is on form this month…

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Key points
  • Sayona shares have been on fire in recent weeks.
  • The lithium share has risen a whopping 46% since this time last month.
  • This has been driven by the doubling of its mineral resource early this month.

The Sayona Mining Ltd (ASX: SYA) share price has continued its impressive run on Monday.

In afternoon trade, the lithium developer's shares are up 6% to 17.5 cents.

This means the Sayona share price is now up 46% in the space of a month.

A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath.

Image source: Getty Images

Why is the Sayona share price surging higher?

Investors have been bidding the Sayona share price higher this month following a very positive announcement relating to the company's North American Lithium (NAL) and Authier projects.

According to the release, the two projects now have a combined measured, indicated, and inferred mineral resource of 119.1 million tonnes at 1.05% lithium oxide.

This upgrade represents the doubling of its mineral resource from management's previous estimates. In light of this, Sayona can stake the claim as having the largest spodumene resource in Canada.

Management was delighted with the news, particularly given how high lithium prices are right now.

Sayona's Managing Director, Brett Lynch, commented: "This expansion is a major achievement for Sayona as we further enlarge our leading lithium resource base in North America. Since the start of 2020, we have now grown our Québec resource base nearly six times and with further increases expected soon from Moblan."

"With lithium prices surging on the back of an increasing structural supply deficit, our upcoming definitive feasibility study for an integrated NAL‐Authier operation, expected in coming weeks, is set to show significantly enhanced profitability for the benefit of shareholders," he added.

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.

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