The Azure Minerals Ltd (ASX: AZS) share price is getting hammered on Monday.
In morning trade, the lithium explorer's shares are down a disappointing 17% to $2.36.
Why is the Azure Minerals share price sinking?
Investors have been hitting the sell button this morning after the company released further drilling results from the 60%-owned Andover Project in Western Australia.
According to the release, the company has delivered "more outstanding lithium results" from its most recent drilling. However, the market certainly doesn't agree with this view.
The most recent drilling continues to test AP0011 within Target Area 1 and commenced at Target Area 2 which hosts AP0015, AP0016 and AP0017.
And while new assay results continue to expand the extensive lithium mineralisation within the AP011 pegmatite both down-dip and along strike, the results of Target Area 2 have fallen well short of expectations. The results state:
Assay results have been returned from the first two drill holes from Target Area 2, which were drilled into the AP0015 pegmatite. Both holes intersected high-grade lithium mineralisation with ANDD0247 returning 6.0m @ 1.99% Li2O, and ANDD0250 returning 6.4m @ 1.16% Li2O.
As a comparison, in Target Area 1, the company has been intersecting +100 metres of mineralisation.
So, with only a touch over 6 metres of lithium being found in Target Area 2 from a drilling depth of up to 92.8 metres, investors appear to believe this portion of the project could be a bit of a dud. Though, the company is still drilling and that could yet change.
Azure Minerals also revealed that it will shortly commence drilling at Target Area 3, which is on the other side of Target Area 1. This drilling will give the market an idea of what lies south of what has been drilling thus far.