Why is ASX lithium share Tyranna rocketing 26% today?

There's been no news from the diversified minerals company today but last month it confirmed lithium oxide was found at its site in Angola.

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Key points

  • The Tyranna share price is surging higher today
  • The company announced promising lithium exploration results at the end of last month
  • Tyranna said its analysis confirms a high concentration of lithium oxide at its Namibe site in Angola, Africa.

The Tyranna Resources Ltd (ASX: TYX) share price is rocketing on Tuesday, shooting out of the blocks from the open this morning.

Shares of the diversified minerals company currently trade for 4.3 cents each, a gain of 26.47% on the day.

It's a much better performance than the S&P/ASX 200 Materials Index (ASX: XMJ) — it's down 0.11% at the time of writing.

In fact, Tyranna shares have been on a hot run since May, reaping a 529% year-to-date return.

Let's see what's going on.

What happened?

There's no news from the company today to make sense of the surge in the Tyranna share price.

However, momentum could be carried forward from 22 August when the company announced "outstanding results" from its Namibe lithium project in Angola, Africa.

The results came from assays (composition and quality analysis) from 50 rock-chip samples collected from the site in July.

Tyranna notes that half the samples contained spodumene. The rock chips contained also contained a high average concentration of lithium oxide at 3.21%.

Overall, the company notes this confirms that significant lithium mineralisation exists at its Namibe site and that it will explore previously untapped deposits.

Tyranna executive director Paul Willams said:

We are very excited by these results which provide further encouragement and confirmation that the Namibe Lithium Project contains substantial high grade spodumene mineralisation and justifies Tyranna's acquisition of what is proving to be a valuable project. We have defined a larger drill-target area at the site known as 21n, and these results in particular provide further confidence in designing our maiden drilling program. We are looking forward to the next phase of exploration to test these areas at depth.

Tyranna Resources share price snapshot

The Tyranna share price is up 57% over the past month. By comparison, the Materials Index is down 2.37% over the same period while the S&P/ASX 200 Index (ASX: XJO) is 2.56% lower.

The company's market capitalisation is around $98 million.

Motley Fool contributor Matthew Farley 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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