Guess which ASX mining share leapt 60% this morning on a new lithium discovery?

This share is exploding on lithium news out today.

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Key points

  • This ASX mining share surged nearly 62% at one point today 
  • Lithium mineralisation was confirmed in 12 drill holes 
  • The company is exploring the Chulitna Project in Alaska, USA 

The S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 1.23% today, but one ASX mining share is storming much further ahead.

The Discovery Alaska Ltd (ASX: DAF) share price is soaring 44.6% to 9.4 cents at the time of writing. In earlier trade, the company’s share price surged nearly 62% to 10.5 cents.

So what is causing this ASX mining share to explode today?

Lithium discovery

Discovery Alaska shares are surging after the company confirmed lithium minerals at the Coal Creek prospect within the company’s Chulitna Project.

Analyser readings showed lithium mineralisation at twelve historical drill holes at the site. The company used a SciAps Z-901 LIBS handheld analyser to reveal lithium across broad zones within the drill holes.

This follows initial news on 29 May that lithium was identified at the site. The company has 100% ownership of the project, located in the US state of Alaska.

Discovery Alaska will now conduct laboratory analysis testing of the drill core with the aim of outlining a JORC lithium resource.

Commenting on the news, Discovery director Jerko Zuvela said:

The company is excited to progress lithium exploration works at our Coal Creek prospect with positive scanning results indicating broad zones of lithium in all drill holes tested thus far.

We look forward to realising the lithium potential at our Coal Creek prospect and
advancing works toward delineating a maiden JORC resource.

Share price snapshot

The Discovery Alaska share price has soared 102% in the past year, while the micro-cap is exploding 206% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 2% in the past year.

Discovery Alaska has a market capitalisation of about $21 million based on today’s share price.

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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