The Everest Metals Corporation Limited (ASX: EMC) share price is having another strong day.
In morning trade, the ASX mining share was up as much as 38% to a 52-week high of 34.5 cents.
When its shares hit that level, it meant they were up 64% in the space of three days.
Why is this ASX mining share rocketing higher?
Investors have been buying the company's shares this week following the release of two promising announcements.
The first announcement reveals that Rio Tinto Ltd (ASX: RIO) has mobilised to Everest Metals' North Rover tenement for a planned seven-hole reverse circulation (RC) drilling program looking for lithium.
Rio Tinto has an agreement with the company for an 80% interest in the non-gold mineral rights of this tenement. This means that if a significant lithium resource is found there, the company could benefit without having to lift a finger.
Everest Metals retains all gold mineral rights at the location.
The ASX mining share's chief operating officer, Simon Phillips, commented:
EMC is pleased Rio Tinto Exploration has decided to progress to the next stage of the North Rover earn-in with commencement of this drilling program. It's exciting to have a major earn-in partner in exploring this relatively underexplored part of the EMC portfolio.
What else was announced?
This morning, Everest Metals announced that diamond drilling has identified a DeGrussa style mineralised system under the Revere gold project in Western Australia.
This project sits proximal and along strike of the DeGrussa and Monty Copper-Gold mines, just 55km to the southwest, which are owned by Sandfire Resources Ltd (ASX: SFR).
Phillips adds:
To drill into such a large mineralised system on our first pass drilling is significant and highlights the potential of the target area. The first three diamond drill holes were designed to test electromagnetic conductors identified as having the potential for Volcanic Hosted Massive Sulphides at depth. The similarities in geological sequences when compared to the Sandfire DeGrussa VHMS deposit is geologically very significant.
