Guess which ASX lithium share is rocketing 25% on a new, high-grade discovery

Investors are snapping up shares in this small-cap explorer after the announcement of its latest rock chip sampling results.

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Key points

  • The St George Mining share price is flying higher this morning
  • The miner reported high-grade lithium results from rock chip assays at its JV Mt Alexander Project in WA
  • Drilling at the site is set to commence in the coming weeks

Small-cap ASX lithium share St George Mining Ltd (ASX: SGQ) is setting the bar high today.

Following the announcement of high-grade lithium results, the St George Mining share price is up a whopping 25% in morning trade.

Here's what the ASX lithium share reported.

What's driving investor interest in the ASX lithium share?

The St George Mining share price is rocketing after the miner reported rock chip assays confirming the presence of up to 2.7% Li2O at its joint venture Mt Alexander project, located in Western Australia.

The assays come from the first batch of 10 selective rock chip samples the ASX lithium share submitted for laboratory assay.

St George has a 75% interest in the project area and is the project manager. Mining giant IGO Ltd (ASX: IGO) holds the other 25%.

Atop the confirmation of high-grade lithium at the site, the ASX lithium share looks to be getting a boost from the report that its field mapping has identified a "significant extension" of the outcropping pegmatites that contain visible lithium minerals.

The high levels of caesium, tantalum, and rubidium returned in the results are also often associated with significant lithium deposits at depth.

Commenting on the assays, St George Mining's executive chairman John Prineas said:

The grades and scale we are seeing appears to confirm that we are exploring a highly prospective pegmatite hosted lithium mineral system in its early stage of evaluation.

Our lithium bearing pegmatites are located in the same corridor parallel to the Copperfield Granite where Red Dirt Metals (ASX: RDT) has announced significant lithium discoveries and flagged a pending maiden mineral resource. Zenith Minerals (ASX: ZNC) has also announced on 11 October 2022 the commencement of drilling of prospective pegmatites at its Mt Ida North Lithium Project, north-east of our lithium-bearing pegmatites.

Additional rock chip and soil sampling assays are pending, and St George aims to commence drilling later this month or early November.

St George Mining share price snapshot

Despite today's big lift, the ASX lithium share remains down 30% in 2022. That compares to a year-to-date loss of 14% posted by the All Ordinaries Index (ASX: XAO).

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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