IGO share price in the green on high-grade lithium news

We take a look at the latest lithium exploration results from IGO's JV partner at Mt Alexander, in Western Australia.

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Key points

  • IGO share price edges higher in early trade
  • St George Mining, IGO's joint venture partner at Mt Alexander, reported high-grade lithium rock chip assays
  • Drilling at the project is scheduled to commence in a matter of weeks

The IGO Ltd (ASX: IGO) share price is edging higher on open, up 0.2%.

The S&P/ASX 200 Index (ASX: XJO) lithium miner closed yesterday trading for $15.57 per share. It is currently trading for $15.60 per share.

Here's the latest lithium news ASX investors are mulling over today.

What lithium news was reported?

The IGO share price is in the green following a promising announcement from its joint venture (JV) partner St George Mining Ltd (ASX: SGQ) regarding the Mt Alexander Project, located in Western Australia.

IGO has a 25% interest in the project area and St George holds the remaining 75%.

According to the release, the first assays of visibly mineralised pegmatite rock chip samples confirmed high-grade lithium.

The IGO share price could be getting some support from the miner's assertion that the results indicate the potential for Mt Alexander to host "significant lithium mineralisation". The company said the strong caesium, tantalum and rubidium values returned in the results are often associated with significant lithium deposits at depth.

Commenting on the promising early results, St George Mining's executive chairman, John Prineas, said:

We are delighted that our visual interpretation of lithium-bearing pegmatites has been confirmed as accurate by the first batch of laboratory assays.

The high-grade lithium assays are from pegmatite outcrops spread over a 1.7-kilometre zone at Jailbreak within a 15-kilometre-long interpreted lithium, caesium and tantalum corridor where numerous pegmatites at Mt Alexander have been mapped to date.

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… The fast-emerging lithium potential at Mt Alexander perfectly complements our continued search for more high-grade nickel-copper-PGE sulphide discoveries.

Looking ahead, the miner expects assay results from more rock chip samples and soil samples over the coming weeks.

Drilling is scheduled to kick off later this month or in early November.

IGO share price snapshot

The IGO share price has been a stellar performer over the past 12 months, gaining 76%.

To put that in some context, the ASX 200 is down 9% over the full year.

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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