This ASX gold miner just struck lithium, and its shares are rocketing 68%

It's a big day for this ASX small cap miner.

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Key points

  • The Alchemy Resources share price is launching higher on Friday, gaining 68% to trade at 3.2 cents at its intraday high
  • The gain follows news the company has struck lithium at its Karonie Gold Project
  • Let's take a closer look at the find that's sent this ASX mining share sky high on Friday

ASX gold miner – and now potential lithium hopeful – Alchemy Resources Limited (ASX: ALY) has struck 'white gold', and its share price has been electrified in response.

Soil sampling and rock chipping at the company's Karonie Gold Project have discovered a new coherent lithium and pathfinder anomalous corridor.

At the time of writing, the Alchemy Resources share price is 2.7 cents, 42.11% higher than its previous close.

Though, that's a slip from the ASX gold miner's brand new 52-week high of 3.2 cents, reached this morning. That represents a 68% surge.

This ASX gold miner may have uncovered lithium

A potential new lithium asset has been identified east of Kalgoorlie, and this ASX miner's shares are reaping the benefits.

Alchemy Resources' Pecan, Mesquite, Hickory, and Cherry prospects have been found to house soil anomalies consistent with possible hard rock lithium mineralisation.

The prospects cover an area 7km long and 1km wide. They sit along Global Lithium Resources Ltd (ASX: GL1)'s and Breaker Resources NL (ASX: BRB)'s Manna Lithium Deposit's strike.

The ASX mining share recently found additional lithium targets for the Karonie regional areas through a desktop study. The study generated 15 initial targets.

Site visits to the targets will be conducted to ground-truth the target areas. Additionally, Alchemy Resources is planning a large-scale soil sampling campaign at the project.

It notes most of Karonie's tenure sits on a contact zone for a regional granite strike, most of which hasn't been tested for battery minerals.

In addition to the Karonie Project, the ASX miner owns Western Australia's Lake Rebecca gold project.

It also has stakes in other gold, copper-nickel, and base metals projects around Australia.

Today's gains included, the Alchemy Resources share price is 145% higher than its first close of 2022 – 1.1 cents.

Motley Fool contributor Brooke Cooper 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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