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'Very much excited': Guess which ASX lithium share just soared 70%

We take a look at one explorer that is charging ahead today.

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Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
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Key points
  • The shares of this Western Australian explorer have rocketed more than 70% today
  • This mining company is exploring the Andover West Project in Western Australia 
  • In contrast, the ASX 200 Materials Index is sliding 0.04% today 

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?

Three satisfied miners with their arms crossed looking at the camera proudly.

Image source: Getty Images

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.

Motley Fool contributor Monica O'Shea 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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