The Vulcan Energy Resources Ltd (ASX: VUL) share price has been a strong performer on Tuesday.
In morning trade, the lithium developer's shares are up 6% to $7.55.
Why is the Vulcan share price charging higher?
The Vulcan share price has been a strong performer today thanks to the release of an announcement relating to the company's Zero Carbon Lithium Project.
According to the release, Vulcan has received approval to carry out a 3D seismic survey from eight local councils across its license area in the German state of Rhineland-Palatinate.
The 3D seismic survey work is planned to commence in September and will assist with future development drill planning in Vulcan's Phase One areas.
In addition, the company has been granted a new exploration license, increasing its license area in the Upper Rhine Valley Brine Field by a sizeable 277km2 to a total of 1,440km2.
Management commentary
Vulcan's managing director, Dr Francis Wedin, was very pleased with the development. He said:
We welcome the decision of the eight councils in the German state of Rhineland-Palatinate for Vulcan to commence 3D seismic work, as we continue to experience increasing positive momentum at a local level for the Zero Carbon Lithium Project.
Dr Wedlin believes the response from local councils thus far bodes well for the future. He added:
So far, all local votes for Vulcan's work plan applications in our Phase 1 area have been positive, which is a strong endorsement for our Project, as well as for the reputation and professionalism for the Vulcan team; many of whom have worked in the geothermal industry and the local area for many years.
The managing director also spoke positively about the new exploration licence, noting that it makes the largest lithium resource in Europe even larger. Dr Wedlin said:
Our new exploration license, Ried, increases our license exploration area by 24%, for what is already the largest JORC compliant lithium resource in Europe. A strength of the Upper Rhine Valley region is the extensive exploration and development historically conducted by oil and gas companies, and Vulcan continues to leverage the work performed by the hydrocarbons industry to accelerate the Zero Carbon Lithium Project by reducing the amount of time required to gather data.
The grant of the Ried exploration license allows us to realise this data acquisition strategy, first executed last year. We are now well positioned to progress work in this area more efficiently and cost effectively, at a time of unprecedented demand for lithium for electric vehicles, and for renewable energy in Europe.
