The Lithium Energy Ltd (ASX: LEL) share price has returned from its trading halt and stormed higher on Wednesday.
In morning trade, the lithium explorer's shares are up 18% to $1.32.
At one stage, the Lithium Energy share price was up as much as 27% to $1.42.
Why is the Lithium Energy share price storming higher?
The catalyst for the rise in the Lithium Energy share price today has been the release of very positive drilling results.
In fact, the company believes the first hole of the maiden 10-hole drilling programme has confirmed a "major new lithium discovery" at the Solaroz Lithium Brine Project in the Lithium Triangle in Argentina. This project is in close proximity to one operated by lithium giant Allkem Ltd (ASX: AKE).
According to the release, significant levels of lithium brine concentrations in excess of 400 mg/l were hosted in the porous sandstones encountered between ~55 to ~228 metres depth in the first drillhole at the project.
Management advised that it is highly encouraged by these early assay results. It highlights that the significant lithium concentrations and low Mg/Li ratios are positive in relation to future potential processing options.
Drilling is now advancing in the first hole to test this primary target beneath a thick mudstone unit.
Significant resource potential
Lithium Energy's executive chairman, William Johnson, commented:
To confirm the discovery of high concentrations of lithium in the brines in the upper aquifer of our first drill hole at Solaroz is a watershed moment for Lithium Energy. It further confirms the potential for the Solaroz Project to host a significant resource of lithium brines in what is probably the best location globally to have a lithium discovery.
With assay results showing that lithium concentrations in this first hole increase at depth, the Company is now looking forward to assay results from sampling the target lower aquifer, as drilling continues to its target depth of 400 metres.
