Latin Resources share price jumps 7% on tier one lithium project potential

This lithium explorer could be sitting on top of a tier one asset.

| More on:
two men smiling with a laptop in front of them, symbolising a rising share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Latin Resources Ltd (ASX: LRS) share price is catching the eye on Wednesday.

In late morning trade, the lithium explorer's shares are up 7.5% to 28.5 cents.

Why is the Latin Resources share price jumping?

The catalyst for this gain has been the release of a drilling update from the lithium explorer's Salinas Lithium Project in Brazil.

According to the release, step out drilling immediately to the southwest of the Colina deposit has added significant strike extensions to the already considerable mineral resource footprint with the discovery of a new pegmatite cluster.

Management notes that its high grade assay results are to be incorporated into an updated Colina JORC Mineral Resource Estimate (MRE), which is expected to be released the current quarter.

In addition, it highlights that regional soil sampling and mapping at the new Fog's East tenement has revealed more outcropping spodumene rich pegmatites with coincident lithium-in-soil anomalies. Initial drill testing is schedule for this month.

All in all, the company believes that the Salinas Project continues to grow towards a tier one lithium deposit.

Latin Resources' Vice President of Operations in the Americas, Tony Greenaway, commented:

Our ongoing brownfields extension drilling at Colina, and region greenfield exploration drilling continues to discover new pegmatites within the Salinas Lithium Project. Step out drilling immediately to the southwest of Colina has added significant strike extensions to the already considerable mineral resource footprint at Colina, and we expect that these will be incorporated into an updated resource estimate before the end of this year.

Our understanding of the regional potential of the Salinas lithium project grows with every new discovery we make, with now three well defined mineralisation systems and Colina, Colina Southwest and Fog's Block, with potentially a fourth now emerging.

The Latin Resources share price is now up more than 150% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Miner looking at a tablet.
Materials Shares

Fortescue shares drop as $1.1 billion stake hits the market

A major investor is pulling the pin on Fortescue shares, sending the share price lower.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

These beaten down ASX lithium stocks could rise 35% to 85% in 12 months

Big returns could be on offer for brave investors according to analysts.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why is this ASX lithium stock crashing 16% today?

Why is this stock having such a poor start to the week?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Core Lithium share price hits a multi-year low: Will the tide change soon?

Are analysts now seeing value emerge from the lithium miner's shares?

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
Materials Shares

Brickworks share price jumps on big Soul Patts news

Brickworks has just built more stability to its business.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Materials Shares

Meet the speculative ASX stock that could rise 200%

Bell Potter thinks this high risk stock could triple your money.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Guess which ASX 200 mining stock is making a $276m UK acquisition

BHP failed in its UK takeover attempt but this mining stock is having more luck.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Materials Shares

Where could the Pilbara Minerals share price be in 12 months?

Will the market be kind to this lithium giant? Let's see what analysts are expecting.

Read more »