Why is the Core Lithium share price gaining on Friday?

It's shaping up to be good day for the ASX 200 lithium favourite.

Key points
  • The Core Lithium share price has lifted 1.4% this morning to trade at $1.07 right now
  • Its gain comes amid exploration results from drilling at three prospects within the Finniss Project
  • The company's CEO dubbed the results "encouraging", saying they demonstrate 2022's drilling program was worth its cost

The Core Lithium Ltd (ASX: CXO) share price is back in the green after Thursday's major tumble on positive news of the company's lithium exploration.

Drilling at its flagship Finniss Lithium Project's Hang Gong and Far West prospects has returned encouraging results while shallow mineralisation has been confirmed at its Bilatos prospect.

The Core Lithium share price has recovered from an earlier fall that saw it opening 3.79% lower at $1.015.

Right now, the S&P/ASX 200 Index (ASX: XJO) lithium stock is trading for $1.07. That's 1.42% higher than it was at yesterday's close.

Let's take a closer look at what's going on with the ASX lithium favourite on Friday.

A miner in a hardhat makes a sale on his tablet in the field.

Image source: Getty Images

Core Lithium share price lifts on exploration results

The Core Lithium share price is dusting itself off this morning, recovering some of the 9.4% tumble it experienced on Thursday. Yesterday's fall came amid the results of Pilbara Minerals Ltd (ASX: PLS)'s latest lithium auction, wherein its realised price for the material fell month-on-month.

Today's gain, meanwhile, appears to have been sparked by assay results from a drilling campaign conducted at various Finniss prospects.

The latest results have discovered excellent grades and improved pegmatite continuity at Far West. They've also allowed better definition and the extension of previously announced mineralisation at Hang Gong. Both prospects are nearby the company's Grants DMS processing plant.

Meanwhile, 22 kilometres south at Bilatos, the company has confirmed large pegmatite body with at least 760 metres of strike length. It also has the potential to be suitable for open-pit mining.

Core Lithium CEO Gareth Manderson commented on today's news, saying:

The RC and diamond drilling results are encouraging and demonstrate that the additional investment in the drilling program at Finniss in 2022 is the right approach for the exploration strategy.

Far West, Hang Gong, and Bilatos represent further upside potential for the Finniss Project and we have planned an expanded exploration program for 2023.

Today's gain included, the Core Lithium share price is 70% higher than it was at the start of 2022. It's also 106% higher than it was this time last year.

For comparison, the ASX 200 has fallen 6% year to date and 2% over the last 12 months.

Motley Fool contributor Brooke Cooper 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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