The Kingsland Minerals Ltd (ASX: KNG) share price has caught the eye of small-cap investors this month.
Since the start of September, the ASX graphite stock has risen 42% to 27 cents.
Why is this ASX graphite stock rocketing?
The catalyst for this strong gain has been the release of a couple of promising announcements this month.
The first revealed significant intersections of total graphitic carbon at its Leliyn Graphite Project in the Northern Territory.
The release highlights that holes LEDD_04 and LEDD_05 were drilled at the north-western extremity of the current drilling area and show that massive widths and grades are open along the strike to the north.
Management believes the latest intersections provide more strong evidence that the Leliyn Graphite Project is emerging as a large, high grade, globally significant project. It feels this positions the project as a leading supplier to the lithium battery industry.
A second announcement from last week also boosted the ASX graphite stock. That announcement reveals that the company achieved strong results from its initial petrographic analysis.
The results indicate graphite flake size of up to 150 microns, which is highly favourable for battery anode material.
Management believes the initial results are a major milestone in de-risking the Leliyn Graphite Project's pathway to development.
Kingsland Minerals' managing director, Richard Maddocks, said:
This first batch of thin section petrography shows the graphite flake size at Leliyn is highly suitable for making battery anode material for lithium batteries. These outstanding initial testwork results are a major milestone in de-risking the Project's pathway to development.
Leliyn is rapidly emerging as a globally significant high-grade, massive scale graphite deposit with favourable characteristics located in the tier-one jurisdiction of the Northern Territory.