The Leo Lithium Ltd (ASX: LLL) share price has defied weakness in the lithium industry today and is charging higher.
At the time of writing, the lithium developer's shares are up 6% to 59 cents.
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Why is this ASX All Ords lithium share racing higher?
Investors have been buying this lithium share on Tuesday morning following the release of a positive update.
According to the release, the company has substantially upgraded the mineral resource estimate (MRE) for the Goulamina Lithium Project in Mali.
A resource definition drilling campaign was undertaken during the second half of 2022 on pegmatite dykes in the Danaya Domain at the south-west of the project. Pleasingly, the recently completed assessment of drilling results and the updated MRE for Danaya has increased the Danaya MRE by 152%, from 22.3 Mt to 56.1 Mt.
As a result, the total Goulamina resource base has increased by 31% from 108.5 Mt at 1.45 % Li2O to 142.3 Mt @ 1.38% Li2O.
'Outstanding scale'
Leo Lithium's managing director, Simon Hay, was pleased with the results and notes the project's "outstanding scale." He commented:
We are pleased to report a considerable resource upgrade which confirms the outstanding scale, high-grade nature, and further growth potential of the Goulamina Project. An increase in Danaya of 33.8 Mt from a moderate drilling campaign of approximately 12,700 metres, is a fantastic outcome. These results continue to reveal high-grade, thick intercepts and confirm our expectations of multiple, wide mineralised pegmatite zones.
Also, the deposit remains open at depth and along strike, creating new drilling targets for the team. This significant upgrade also supports the possible extension of the 23-year mine life of the Goulamina Project. Resource definition drilling continues on the Northeast Domain with drilling results to be announced shortly, and a Mineral Resource estimate subsequently set to be restated in the current half year. These results are also encouraging ahead of first spodumene concentrate product in Q2 2024 and the early revenue opportunity from the targeted export of direct shipped ore in H2 2023.
