Here's why the Core Lithium share price is soaring 10% on Monday

The lithium developer has started the week off with a bang.

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Key points

  • The Core Lithium share price has surged 10% this morning to trade at $1.615 
  • Its gains come on the back of an exploration update detailing lithium at the company's Anningie-Barrow Creek Project and gold at the Finniss Lithium Project 
  • The company has also been named as a recipient of two $100,000 grants 

The Core Lithium Ltd (ASX: CXO) share price is taking off on Monday after the lithium developer released an update on exploration activities.

The update outlines two grants, notable lithium results, and an update on gold exploration.

Right now, Core Lithium shares are trading for $1.615 apiece, 9.86% higher than their previous closing price.

Let's take a closer look at today's news from the S&P/ASX 200 Index (ASX: XJO) lithium favourite.

Core Lithium share price surges on exploration update

The Core Lithium share price is surging higher on the back of an update on activities at the company's Finniss Lithium Project and Anningie-Barrow Creek Project.

Finniss Lithium Project strikes gold

A more than 40,000 metre reverse circulation (RC) drill program has kicked off at the Finniss Project. It's following up on prospects with excellent prior exploration results.

Drilling is also underway at the project's BP33 resource, focusing on exploring the depth and strike extensions of the main pegmatite intrusions.

On top of that, the company has been exploring gold mineralisation at the project. Drilling has targeted five of 40 identified anomalies, finding gold at shallow depths.

The company said its explorations so far suggest gold at Finniss is comparable with that seen at Pine Creek Orogen, a gold district with reserves in excess of 18 million ounces.

Good news regarding the ABC Project

Core Lithium also reported findings at the Anningie-Barrow Creek (ABC) Project – described as a "lookalike to the company's high-grade discoveries at the Finniss Lithium Project".

Though, unlike the Finniss Project, spodumene at the ABC Project occurs at surface level.

The company has assayed 13 rock samples from the project's Bismark Prospect, with six returning greater than 1% lithium oxide and a maximum of 4.78% lithium oxide.

Successful grant applications

Finally, it has successfully applied for two separate co-funding grants from the Northern Territory Geophysics and Drilling Collaborations program.

A $100,000 grant will go towards an ambient noise tomography survey at the Shoobridge Lithium Project.

Another $100,000 grant has been offered for a single deep diamond drill hole targeting the down plunge extension to the Sandras Lithium Deposit's mineral resource.

Core Lithium share price snapshot

Today's gain sees the Core Lithium share price nearing its all-time high of $1.68, reached in April.

The stock is currently trading 150% higher than it was at the start of the year and 366% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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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