The Latin Resources Ltd (ASX: LRS) share price is on fire on Wednesday.
At the time of writing, the lithium explorer's shares are up 9% to 18.5 cents.
This means that this ASX lithium share is now up over 125% since this time last year.
Why is this ASX lithium share racing higher?
Investors have been buying the company's shares today following the release of an update on drilling activities at the Colina Lithium Deposit in Brazil.
According to the release, the major resource definition drilling program at the deposit is now complete with all assay results received from the laboratory.
Independent consultants SGS Geological Services in Canada have commenced the mineral resource update, on schedule for a June release.
The good news is that Latin Resources' vice president of Operations, Americas, Tony Greenaway, is very optimistic that SGS could report back with a significant resource upgrade for the deposit. He said:
With all the planned drilling for our MRE upgrade now complete and assay results received, SGS has commenced the resource estimation process and this is on track to be released in June. We are all eagerly awaiting the outcome of this process, as we believe that we will see a significant expansion in the JORC resource for Colina, given the exceptional results we have been seeing in our drilling this year.
But this ASX lithium share isn't settling for that. It is looking to expand the deposit to the south-west, where drilling results have been favourable. He adds:
Our drilling rigs are still turning on site, with all eight rigs operational. This next phase of drilling will focus on the continued expansion of the Colina deposit to the south-west, where our high-grade mineralisation remains open, infill drilling to increase the JORC classification of the defined resources, and testing of new areas along strike, where our regional teams have identified multiple new target areas through mapping and geochemical sampling.
