Guess which ASX lithium share is rocketing 39% on project news

This lithium share is on fire on Tuesday. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Ragusa's shares are rocketing higher on Tuesday morning
  • This follows the release of an update by the lithium explorer
  • That update reveals that its drilling program is close to starting and more lithium pegmatite occurrences have been identified

The Ragusa Minerals Ltd (ASX: RAS) share price is having a day to remember.

In morning trade, the lithium explorer's shares are up 39% to a record high of 44.5 cents.

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

Image source: Getty Images

Why is the Ragusa Minerals share price on fire today?

Investors have been scrambling to buy this lithium share on Tuesday following the release of an update on the NT Lithium Project.

According to the release, the company has made progress towards the commencement of the maiden drilling program at the project. This follows the completion of site preparation earthworks, including access track and drill pad clearing.

Also getting investors excited was some commentary on a recent site visit.

Management advised that during the visit, additional reconnaissance and sampling was undertaken. This led to new pegmatite occurrences being identified, in addition to the known mapped pegmatite outcrops.

A newly identified pegmatite of ~150m outcrop width was found along the eastern edge of the project area, to the north of the White Rocks prospect. Positively, a sample collected from the exposure returned a strongly anomalous lithium grade consistent with what would be expected from a depleted lithium-bearing pegmatite outcrop.

However, it is not known if the intersection represents the true width of the pegmatite.

'Massive upside value potential'

Ragusa's chair, Jerko Zuvela, revealed that the company was very excited with the news and the potential of the NT Lithium Project. Zuvela said:

The Company is very excited as we prepare to commence our maiden drilling program at our strategic and highly prospective NT Lithium Project. This puts Ragusa in a strong position to rapidly accelerate the development of our project within a proven high-quality lithium district.

We have a significant opportunity to utilise our exploration and development experience to rapidly progress our NT Lithium Project and realise the massive upside value potential in a Tier 1 jurisdiction close to major infrastructure at a time of record lithium prices.

Motley Fool contributor James Mickleboro 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.

More on Materials Shares

Man looking happy and excited as he looks at his mobile phone.
Materials Shares

BHP shares charge higher following third-quarter update

Let's see how the Big Australian performed during the quarter.

Read more »

A man wearing a hard hat stands in front of heavy mining machinery with a serious look on his face.
Materials Shares

Boom or bust: What's next for Lynas shares?

Can the miner push its rally beyond the 133% annual gain?

Read more »

Two men laughing while bouncing on bouncy balls.
Materials Shares

James Hardie shares jump 17%: Is this the beginning of a recovery we've been waiting for?

The shares have now rebounded from a four-month low in late March.

Read more »

Man on a ladder drawing an increasing line on a chalk board, symbolising a rising share price.
Materials Shares

This ASX stock is up 74% in a month. Here's why it's ripping 9% higher today

Sunrise shares are capping a rapid monthly rally.

Read more »

A small child in a sandpit holds a handful of sand above his head and lets it trickle through his fingers.
Materials Shares

Lynas shares slip after update: here's what's turning heads

Lynas shares dip after releasing its March quarterly update.

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

Rio Tinto shares close in on record high following strong Q1 update

Australia's second-largest miner has handed in its report card on Tuesday.

Read more »

a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.
Materials Shares

This ASX lithium stock just exploded 12%. Here's what sparked it

European Lithium shares rocket 12% as investors react to latest announcement.

Read more »

Sell buy and hold on a digital screen with a man pointing at the sell square.
Broker Notes

Up 130% in a year, are Lynas Rare Earths shares still a good buy today?

Lynas Rare Earths shares have more than doubled ASX investors’ money in a year. Is there still time to buy?

Read more »