Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects

Ragusa Minerals hopes to create a ‘supergroup’ project area in the NT similar to neighbouring Core Lithium.

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asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

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Key points

  • ASX lithium shares have outperformed amid record prices for the conductive metal 
  • Ragusa Minerals isn't giving up on gold but doubling down on lithium 
  • Shares in the microcap explorer leapt on news of its farm-in agreement with May Drilling 

ASX lithium shares have been some of the best performers on the exchange this year.

With lithium demand booming amid a surge in global electric vehicle production, many resource explorers are branching out from their traditional metals and turning their attention to uncovering the light-weight, highly-conductive metal.

And that’s seeing this small ASX gold share transforming into an ASX lithium share.

A nascent ASX lithium share

You may not be familiar with Ragusa Minerals Ltd (ASX: RAS). The microcap resource explorer that’s been primarily focused on gold has a market cap of just $12 million. But it has big ambitions.

At time of writing the Ragusa share price is up 23% to 9.8 cents per share after earlier posting gains of 30%.

The aspiring ASX lithium share entered a trading halt on Friday pending an announcement released before market open today.

According to the release, Ragusa has entered into a tenement farm-in agreement with May Drilling for the exclusive right to earn an initial 90% interest in a tract of lithium prospective tenements. Ragusa maintains the option to increase its interest to 100%.

The tenements are located in the Litchfield Pegmatite Belt, located in the Northern Territory. Covering some 570 square kilometres, the area is in close proximity to Core Lithium Ltd‘s (ASX: CXO) Finnis Project.

What did management say?

Commenting on the agreement that could see the company transform into an ASX lithium share, Ragusa chair, Jerko Zuvela said:

The company has secured extremely strategic and highly sought-after lithium prospective tenements in the centre of a well-renowned lithium district. This is a significant opportunity to combine Ragusa’s existing NT lithium projects to create a combined ‘supergroup’ project area comparable to neighbours Core Lithium and Lithium Plus, and utilise our exploration and development experience to rapidly progress our NT Lithium Project in a Tier 1 jurisdiction close to major infrastructure.

With four currently granted tenements and considerable historic works to reference, Ragusa is in a strong position to rapidly accelerate the development of our project at a time of record lithium prices and within a proven high-quality lithium district.

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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