The Sayona Mining Ltd (ASX: SYA) share price is tumbling on Thursday despite seemingly good news about one of the company’s Western Australian lithium projects.
Exploration activities at the Mt Edon project have identified potential subsurface lithium targets.
At the time of writing, the Sayona share price is 12 cents, 7.69% lower than its previous close.
In comparison, the All Ordinaries Index (ASX: XAO) is up 0.03%.
Let’s take a closer look at what’s going on with this All Ords lithium share today.
Sayona share price stumbles despite lithium find
The Sayona share price is suffering amid a broader sell-off of ASX lithium shares today. That’s despite seemingly good news from its Mt Edon project.
Exploration at the project, conducted by Morella Corporation Ltd (ASX: 1MC), has mapped 53 pegmatite outcrops within two targets.
A total of 32 samples were taken from the pegmatites, with resulting assays finding the area has the potential for subsurface lithium mineralisation.
While many pegmatites appear narrow and discontinuous, others show apparent thickness and continuity that may evolve into a commercially viable mining opportunity, Morella said.
The two-target project is majority-owned by Sayona. The companies entered into an earn-out agreement last year allowing Morella to earn a 51% stake in the project’s lithium rights. It can do so by spending $1.5 million on exploration at the site over three years.
However, today’s news hasn’t been enough to save the Sayona share price from the broader sell-off among ASX lithium shares.
Other lithium stocks such as Liontown Resources Limited (ASX: LTR), Lake Resources NL (ASX: LKE), and Argosy Minerals Limited (ASX: AGY) are also falling. They are currently down 7.73%, 15.48%, and 3.51% respectively.
The stock is now nearly 14% lower than it was at the start of 2022. Though, it has gained 100% since this time last year.