The Industrial Minerals Ltd (ASX: IND) share price is having a stunning finish to the week.
In afternoon trade, the ASX lithium share is up more than 100% to 92 cents.
Why is this ASX lithium share rocketing?
Investors have been scrambling to buy the company's shares today after it announced a shift in focus from silica to lithium.
According to the release, Industrial Minerals has secured an exclusive option with North West Quarries to acquire an 80% interest in the non-construction material mineral rights (including lithium and high purity quartz (HPQ)) to the operating Pippingarra Quarry near Port Hedland.
Industrial Minerals will pay North West Quarries $50,000 in cash on execution of the option agreement. It must also spend a minimum of $100,000 per annum on exploration during the two-year option period.
Management highlights that the project is located within the world-class Pilbara lithium province of Western Australia and near some of the world's largest hard rock lithium mines.
For example, it is 19km north-east of the Wildcat Resources (ASX: WC8) owned Tabba-Tabba Lithium Project, 55km north-west of the Pilbara Minerals Ltd (ASX: PLS) owned Pilgangoora Lithium Operations, and 69km north of the Mineral Resources Ltd (ASX: MIN) owned Wodgina Lithium Operation.
In addition, it points out that the company holds a number of tenements in the region that are prospective for lithium, making the addition of this project a logical expansion of its activities in the Pilbara region. The company also recently applied for further tenure proximal to the Pippingarra Project.
The ASX lithium share's managing director, Jeff Sweet, commented:
IND is pleased to have secured a highly prospective project amongst meaningful lithium discoveries in the Pilbara region. The deal we have secured with North West Quarries gives IND exposure to assess the lithium and HPQ potential of the pegmatite units in the project while allowing North West to continue with their quarrying activities within their existing granite pit, south of the prospective pegmatite units.
While the project has seen limited exploration for lithium, the historical diamond drill intercept of 6m at 3.73% Li20 is very promising. In addition, having a 3D geological model defined from previous exploration drilling used in the quarrying and mica/feldspar mining activities, allows the company to rapidly define lithium and HPQ targets, and commence drill testing.