Core Lithium share price gives up early gains to close 5% lower

Why did the Core Lithium share price turn sour on Tuesday?

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Key points

  • The Core Lithium share price handed back its 3% gain this morning to close 4.53% lower
  • The lithium developer's tumble followed news an underground mine at the company's Finniss Lithium Project has been given a green light
  • However, the company wasn't the only ASX lithium share to end Tuesday's session in the red

The Core Lithium Ltd (ASX: CXO) share price dumped its early gains on Tuesday before plunging into the red.

The lithium developer released seemingly good news of its Finniss Project this morning, sending its share price up to 3% higher in early trade.

However, come Tuesday’s close, the Core Lithium share price finished at $1.265, 4.53% lower than its previous close.

Today was also a rough day for the broader market.

The S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) both slipped lower. They fell 0.42% and 0.47% respectively as the cash rate was increased for the first time in years.

Let’s take a closer look at today’s news from Core Lithium.

What went wrong for the Core Lithium share price?

The Core Lithium share price’s initial gains turned sour on Tuesday. The stock’s rollercoaster performance followed the release of good news about the Finniss Lithium Project.

The Northern Territory’s Minister of Environment, Eva Lawler, has given the thumbs up to an underground mine at the project.

Now, the company will work to submit a mine management plan to the Department of Industry, Tourism, and Trade.

Core Lithium expects the first ore from the project to be on board ships at the end of 2022.

However, Core Lithium wasn’t the only ASX lithium share to trade in the red today.

It was joined by the likes of Argosy Minerals Limited (ASX: AGY), Mineral Resources Ltd (ASX: MIN), and Liontown Resources Ltd (ASX: LTR).

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 Scott Phillips.

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