Mineral Resources share price lifts on positive lithium project update

Many analysts are predicting a lithium supply crunch amid fast growing global battery demand.

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Key points

  • Mineral Resources share price jumps higher on open
  • The ASX 200 miner has completed an 8,000 metre initial drill campaign at its Norseman Lithium JV
  • The current program is the first to test for lithium potential in the Norseman tenement

The Mineral Resources Ltd (ASX: MIN) share price is in the green, up 2.3%.

Mineral Resources shares closed on Friday trading for $71.51 and are currently trading for $73.12 apiece.

Here's what the S&P/ASX 200 Index (ASX: XJO) lithium and mining services share reported this morning.

What lithium results were reported?

The Mineral Resources share price is marching higher following a market update on the results from the initial phase one drilling program at the Buldania Lithium Project, located in Western Australia.

The Buldania Lithium Project is the initial focus area of the joint venture between Mineral Resources, Pantoro Ltd (ASX: PNR) and Tulla Resources Group Pty Ltd (ASX: TUL) – known as the Norseman Lithium JV.

Additionally, the drilling was conducted by Mineral Resources as part of its initial earn-in under the JV.

The phase one, 8,000 metre drilling campaign focused on a 1.6 kilometre strike where earlier rock chip sampling undertaken by Pantoro had returned elevated lithium values. The current program is the first to test for lithium potential in the Norseman tenement.

Pantoro reported that Mineral Resource's drill holes confirmed the presence of lithium-bearing pegmatites.

Some significant results included:

  • 9m @ 1.26% Li₂O and 151ppm Ta₂O₅ from 30m
  • 8m @ 1.10% Li₂O and 118 ppm Ta₂O₅ from 53m
  • 6m @ 1.02% Li₂O and 103 ppm Ta₂O₅ from 64m

Commenting on the results that are sending Mineral Resources shares into the green today, Pantoro managing director Paul Cmrlec said:

The first pass drilling results by MinRes are a great start to the Norseman Lithium JV. MinRes's rapid advancement of the Buldania project provides great potential for Pantoro stakeholders.

MinRes is responsible for all costs associated with the Norseman Lithium JV until a saleable concentrate is produced from a purpose built processing plant and mining operation.

Further drilling, soil sampling, aerial surveys and flora and fauna surveys are in progress.

Mineral Resources share price snapshot

The Mineral Resources share price has been a strong performer in 2022, up 25%.

That compares to a year-to-date loss of 9% posted by the ASX 200.

Motley Fool contributor Bernd Struben 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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