Guess which ASX lithium stock is exploding 135% on a new discovery

On the back of a fresh discovery, this ASX lithium stock has more than doubled in value today.

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ASX lithium stock Krakatoa Resources Ltd (ASX: KTA) is shooting the lights out today.

The ASX lithium share closed yesterday trading for 2.3 cents. In earlier trade shares were changing hands for 5.4 cents apiece, up a whopping 135%.

After some likely profit-taking, the Krakatoa share price is currently up 100%, trading for 4.6 cents per share.

Here's what's driving investor interest in the ASX lithium stock.

What did Krakatoa Resources report?

The Krakatoa Resources share price is surging after the miner reported on promising assay results from a recent geochemical sampling program at its King Tamba project, located in Western Australia.

The sampling program collected 61 rock chips and 251 soil samples. Krakatoa has now received the results for all those samples and reported they highlight the lithium potential of King Tamba.

Investors look to be bidding up the ASX lithium stock on reports that multiple rock chip samples returned results greater than 2% Li2O. Krakatoa noted peak assays of 4.3% Li2O, 1.7% Rb2O, and 0.5% Cs2O.

The company is planning to commence reverse circulation (RC) at the newly identified Wilsons prospect in short order.

Commenting on the results sending the Krakatoa share price soaring today, CEO Mark Major said:

The results are very encouraging, with a high-tenor multi-element soil anomaly present across multiple sample lines and even more impressive it is supported with a series of six samples from an outcropping pegmatite target area returning Li2O values in excess of 1%, with a peak result of 4.3% Li2O from sample KS04381 at the newly defined Wilsons prospect.

Major noted that other areas have also been investigated.

He added, "We look forward to uncovering more lithium dominated zones to target with drilling."

How has this ASX lithium stock been performing?

Krakatoa Resources is thinly traded and subject to some significant daily price moves.

With today's big gains factored in, the ASX lithium stock is up 15% since the opening bell on 3 January.

Motley Fool contributor Bernd Struben 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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