The Pilbara Minerals Ltd (ASX: PLS) share price is starting the week strongly.
In early trade, the lithium miner's shares are up 3% to $5.14.
Why is the Pilbara Minerals share price charging higher?
Investors have been bidding the Pilbara Minerals share price higher today following the release of a positive update from the lithium giant.
According to the release, the company's FY 2023 drill program has underpinned a substantial increase in the mineral resource of the Pilgangoora Operation in Western Australia.
Management notes that the total measured, indicated and inferred resource has increased by 36% to 413.8 million tonnes (Mt) with a grading of 1.15% lithium oxide (Li2O), 112ppm tantalum pentoxide (Ta2O5), and 0.53% iron oxide (Fe2O3). This means it contains 4.75Mt of lithium oxide and 101.8 million pounds of Ta2O5.
There has also been an even more significant increase in its measured and indicated resource. This has increased 64% to 337.3Mt with a grading of 1.17% Li2O, 103ppm Ta2O5, and 0.53% Fe2O3.
All in all, this has enhanced the overall resource confidence with 82% of the mineral resource now classified as measured and indicated.
The company highlights that this reinforces the 100%-owned operation as one of the largest lithium deposits globally.
But management isn't settling for that. It has identified further extension targets, including the prospective East Extension proximate to the East Pit and Central Extension proximate to the Central Pit. These will be tested during the planned FY 2024 drilling campaign.
'An outstanding result'
Pilbara Minerals' managing director and CEO, Dale Henderson, said:
This significant Resource upgrade reinforces our 100% owned Pilgangoora Operation as one of the largest hard rock lithium deposits globally. The upgraded Mineral Resource is consistent with our strategy to grow our operating base and therefore maximise value by achieving the full potential from our world class operation. We have added 109Mt of additional Mineral Resource at a direct exploration cost of only 13 cents per tonne of additional resource – an outstanding result.
The Pilbara Minerals share price is up 70% over the last 12 months.
