Flat was the new up today with the Latin Resources Ltd (ASX: LRS) share price holding its ground for most of the day, despite the sharp market sell-off. That is, until the last two minutes of trade, when Latin Resources shares finally succumbed.
The ASX lithium junior finished down 4.35% at 11 cents at the close of trade after posting encouraging drilling results.
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Latin Resources share price yields to the gloom
The news wasn't enough to shield it from the 1.4% drop in the All Ordinaries (ASX: XAO) on Wednesday. But the Latin Resources share price isn't alone, given that ASX mining shares are among the biggest losers on the market today.
The wooden spoon goes to the Hastings Technology Metals Ltd (ASX: HAS) share price. It collapsed 18.08% to $4.44. The Chalice Mining Ltd (ASX: CHN) share price isn't far behind with its 13.04% plunge.
Latest drill results
Fortunately for the Latin Resources share price, management announced it struck more high-grade lithium at its Colina prospect in Brazil.
The miner's latest drilling results include 26.88m @ 1.40% Li2 O from 94m, 28.80m @ 1.16% Li2 O from 307m and 10.00m @ 1.05% Li2 O from 186m.
Previous work in the area identified a "lithium corridor" that covered a distance of 4km. The Colina prospect is south-east of Latin Resources' flagship Salinas Lithium project.
On track to the next share price catalyst
Latin Resources' exploration manager Tony Greenaway said:
Our latest results continue to show excellent high‐grade lithium intersections and continuity of the pegmatites along strike and down dip. We are well on schedule to deliver our maiden JORC resource in December which is an exciting milestone for the company.
I am also pleased to have our regional teams out mapping at Salinas South where we know we have more outcropping pegmatites. Our plan is to work‐up these areas to drill‐ready status, and then in the near term commence drilling to begin testing these new areas.
Powering up the Latin Resources share price
The miner has completed more than one-third of the planned 100 drill holes. The results to date continue to confirm the continuity of grade and thickness of the Colina pegmatites at depth.
The Salinas Lithium Project in the pro‐mining district of Minas Gerais, Brazil. Latin Resources is also developing the Catamarca Lithium Project in Argentina.
Lithium is the flavour of the month for ASX investors due to surging demand for electric vehicles. The mineral is a key ingredient in batteries and some experts believe there won't be enough supply to meet demand for years to come.
Latin Resources share price snapshot
This explains why the Latin Resources share price has rallied 156% over the past year. In contrast, the All Ordinaries has fallen 11% while the S&P/ASX 300 Metals & Mining (ASX: XMM) dipped 6.8% over the period.
But Latin Resources isn't the only ASX lithium share that is racing ahead. The Allkem Ltd (ASX: AKE) share price has climbed 45% and the Pilbara Minerals Ltd (ASX: PLS) share price advanced 84% in the last 12 months.
