The Loyal Lithium Ltd (ASX: LLI) share price has returned from a lengthy suspension with a bang on Thursday.
In morning trade, the lithium explorer's shares were up as much as 50% to 48 cents.
The Loyal Lithium share price has eased back a touch since then but remains up a sizeable 44%.
Why is the Loyal Lithium share price taking off?
Investors have been bidding the company's shares higher today after it announced the initiation of a comprehensive exploration program at the recently acquired Hidden Lake Lithium Project in Canada.
According to the release, a total of 315 untested individual outcrops have been identified via high-resolution satellite imagery. These untested pegmatite targets are in addition to the four main spodumene rich dykes, which have a drill and channel tested cumulative strike length of 2,250m and remain open along strike and depth.
Management highlights that the Hidden Lake Lithium Project is strategically located 45km east of Yellowknife. This is the capital of the Northwest Territories and is located within the emerging Yellowknife Lithium District adjacent to an all-weather highway to the south and east, and Li-FT Power's properties to the North.
Loyal Lithium's managing director, Adam Ritchie, believes the project has a lot of potential. He said:
With the first phase of our exploration program now underway, we can immediately see the potential of this underexplored project. The impressive historical metallurgical results are likely a product of the metasediment geological setting, with simple minerology resulting in large spodumene crystals throughout the pegmatites.
In respect to its suspension, Loyal Lithium returned to trade after completing the ASX recompliance process following the acquisition of four highly prospective North American Lithium Projects, which has formally transitioned the company to a lithium-led battery minerals and technology company.
