The Core Lithium Ltd (ASX: CXO) share price is in the red today despite some promising drilling results.
The ASX lithium explorers shares are currently swapping hands at $1.12, a 2.2% fall. However, in earlier trade, the company's share price plunged almost 11% to $1.02. For perspective, the S&P/ASX 200 Index (ASX: XJO) is falling 2% today.
Meanwhile, Core Lithium is not the only ASX lithium share to descend today. The Lake Resources NL (ASX: LKE) share price is falling 4.8%, while Pilbara Minerals Ltd (ASX: PLS) is down 2.34%.
The S&P/ASX 200 Materials Index (ASX: XMJ) is sliding 2.7% in today's trade, while the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is gravitating 3%.
Let's take a look at what could be impacting Core Lithium today.
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What did Core Lithium announce?
The company has received final results from lithium exploration in 2021 at the Finniss Lithium Project in the Northern Territory.
Core reported "exciting results" from the Penfolds prospect. A highlight for the company was a high-grade intersect of 11m at 1.55% lithium oxide from 131m at drill hole SRC080. This included a zone of 7m at 2.06% lithium oxide.
Drilling also intersected spodumene-bearing pegmatite beyond the current mineral resource estimate at the BP33, Lees and Hang Gong prospects.
Further drilling at the Finniss project will continue in the coming month.
Management commentary
Core Lithium's managing director Stephen Biggins said:
The highly prospective nature of these new lithium drilling results reflect the confidence Core has in delivering further significant resource growth from the Finniss Project that will add to our life of mine and our capacity to materially increase lithium production from northern Australia in the future to keep up with rapidly growing global demand.
Our prime directive is to deliver first production of high-quality lithium concentrate from the Finniss Project this year in the midst of a very high lithium price and high operating margin environment.
Core Lithium share price snapshot
The Core Lithium share price has exploded 375% over the past 12 months, while it has soared 93% in the year to date.
For perspective, the benchmark ASX 200 has lost 2% over the past year.
Core Lithium has a market capitalisation of about $1.89 billion.
