Why did this ASX lithium share just rocket 9%?

Does this tiny ASX lithium stock house one of the world's best graphite deposits?

Key points
  • The Lithium Energy share price is taking off today, gaining 9% to trade at 90.5 cents 
  • It comes on news the company's Burke Graphite Project has been found to house one of the highest grade deposits in the world 
  • Assay results show intercepts of more than 20% total graphitic carbon 

The Lithium Energy Ltd (ASX: LEL) share price is ending the week on a high on news of "exceptional" drilling results.

Assays from the company's Burke Graphite Project have confirmed its one of the world's highest-grade deposits.

The Lithium Energy share price has leapt 9.04% to trade at 90.5 cents on the back of the announcement.

Let's take a closer look at the latest from the ASX lithium and graphite developer.

Man pointing at a blue rising share price graph.

Image source: Getty Images

ASX lithium stock soars on graphite find

Lithium Energy is having a great Friday on the ASX, as its share price soars on news of its graphite project – previously found to be capable of producing battery-grade product.

Assay results from seven of 29 holes drilled at the outback Queensland project have now been received, showing intercepts of more than 20% total graphitic carbon. The company's release states:

These grades are exceptionally high when compared with most other known graphite deposits globally.

Lithium Energy is also moving to begin assessing a potential purified spherical graphite anode manufacturing facility in Australia. Such a facility could use Burke graphite as feedstock.

Assays from the remaining 22 holes completed at the project are pending. Meanwhile, the company is gearing up to kick off drilling 150 kilometres away.

Around 2,000 metres of reverse circulation drilling and 200 metres of diamond drilling are planned for its Corella Tenement in the coming months.

Beyond graphite, the company has a 90% interest in Argentina's Solaroz Lithium Project.

It announced it had encountered significant intersections of highly conductive brines in the lithium project's northern section earlier this week.

Lithium Energy share price snapshot

The Lithium Energy share price has had a great start to 2023 on the ASX. It has gained around 26% so far this year. Though, that still leaves it 6% lower than it was this time last year.

The company currently boasts a market capitalisation of around $56 million.

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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