Lithium party: Riversgold (ASX:RGL) share price surges another 41%

The outlook for lithium demand remains strong amid a global push towards electrification.

| More on:
A cool older woman wearing sunglasses celebrates at her party with a gold balloon.

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

The Riversgold Ltd (ASX: RGL) share price closed up 22.2% yesterday.

Riversgold shares finished the day at 4.4 cents.

At the time of writing today, shares are trading for 6.2 cents. That’s another 40.9% intraday gain for Riversgold shares.

So, what’s driving ASX investor interest in the junior resource explorer?

Why are ASX investors hitting the buy button?

With no fresh news out today, the Riversgold share price looks to be leaping higher based on yesterday’s market announcement (covered here) reporting exceptionally strong assay results.

Not for gold, mind you.

But rather for lithium.

The ASX resource explorer acquired four lithium-prospective exploration tenements covering Western Australia’s Pilbara region earlier this year.

Yesterday Riversgold reported that rock chip samples from lithium-bearing pegmatite dykes along a 200-metre strike zone returned exceptional values between 1.5% Li2O (lithium oxide) and 2% Li2O.

Riversgold shares are heading higher again today, with investors potentially focused on the fact that the strike zone is part of a much longer 26 kilometre mineralised corridor, which has yet to be evaluated.

The explorer said crews will begin follow up reconnaissance work along the corridor and other priority targets next week.

Stay tuned.

Riversgold share price snapshot

With today’s big leap factored in, the Riversgold share price is now up a whopping 265% since the opening bell on 4 January.

By comparison, the All Ordinaries Index (ASX: XAO) is down 3.47% year to date.

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 Share Gainers

Rocket powering up and symbolising a rising share price.
Share Gainers

Why is the Piedmont Lithium share price rocketing 15% on Monday?

What's going on with Piedmont shares today?

Read more »

A smiling woman with a cute dog flings her arm out of the window of a car
Share Gainers

Carsales share price launches 5% as profit lifts to $161m

The automotive classified company's financial year 2022 earnings appear to have impressed the market.

Read more »

a happy group of workers around a table raise their arms in the air as though celebrating a work achievement. One woman is on her feet with her arm raised in the air in a fist pumping action.
Share Gainers

Why 5E Advanced Materials, IAG, Magnis, and Woodside shares are pushing higher

These ASX shares are ending the week strongly...

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Here’s why the 5E Advanced Materials share price just rocketed 20%

Why is this materials share lifting today?

Read more »

A woman is excited as she reads the latest rumour on her phone.
Resources Shares

Obscure ASX mining share surges 29% following OZ Minerals copper deal update

Shareholders are set to vote on the proposal later this month.

Read more »

A man holding cup of coffee puts his thumb up and smiles while at laptop.
Share Gainers

IAG share price lifts despite mixed FY22 earnings results

The ASX financial share has caught a bid in morning trading.

Read more »

Happy miner with his arms folded.
Share Gainers

Up 52% since June, can the Pilbara Minerals share price extend gains?

Things are looking up for Pilbara Minerals shares right now

Read more »

jump in asx share price represented by man leaping up from one wooden pillar to the next
Share Gainers

Why has the De Grey share price leapt 36% in a month?

Investors have been sizing in since July.

Read more »