It's been a big day for this microcap ASX lithium share which stormed ahead more than 70% around lunchtime today before shedding some of its gains.
The Errawarra Resources Ltd (ASX: ERW) share price exploded 73.9% from 11.5 cents to 20 cents today. Now, the company's share price has pulled back to 18 cents, a 52% gain on yesterday's close. In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) is slipping 0.11% at the time of writing.
So what is driving investor excitement in this ASX lithium share today?
Lithium exploration update
Investors are buying up Errawarra shares after the company provided a lithium exploration update.
Errawarra is exploring the Andover West project in the north-western portion of the Pilbara Craton in Western Australia.
Today, the company revealed there was "potential for lithium-bearing pegmatites across the Andover project tenements".
Exploration teams recovered seven pegmatite samples during the first field program in May. These have been dispatched to ALS Global in Perth, with results currently pending.
A second round of work, including sampling of pegmatite targets, is now taking place. The company is also searching for nickel and copper mineralisation.
Management commentary
Commenting on the news, Errawarra chairman Tom Reddicliffe said:
We are encouraged by the presence of further pegmatites on the Andover West project tenement with sampling of targets continuing.
We are also pleased with the results achieved by our neighbour, Azure Minerals Ltd and their continued success in discovering and drilling for lithium, with the latest results being outstanding.
We are very much excited by what the Pilbara region keeps delivering to the market and we look forward to continuing with our exploration activity
Share price snapshot
Today's surge is not enough to reverse the downward swing for Errawarra Resources shares over recent months. The company's share price has dropped almost 24% since the start of 2023.
This ASX lithium share has a market capitalisation of around $10.24 million based on the latest share price.
