Guess why this ASX mining stock exploded 200% higher today

This mining stock caught the eye with a huge gain on Thursday. But why?

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Krakatoa Resources Ltd (ASX: KTA) is living up to its name on Thursday.

At one stage today, the ASX mining stock exploded 200% higher to 7.8 cents.

Its shares have simmered down a touch since then but remain up 65% to 4.3 cents in late trade.

Why is this ASX mining stock exploding?

Investors have been scrambling to buy the company's shares today after it released an update on the drilling program testing lithium–caesium–tantalum (LCT) at prospective pegmatites from the ex-tantalum mine, King Tamba in Western Australia.

According to the release, the drilling program is now complete after a total of sixteen holes were drilled across 1806 metres over seven days.

This was a larger-than-planned area. That's because the program was expanded from the initially proposed 1200 metres due to the discovery of a thick pegmatite (up to 39m downhole width) at depth below the target area.

Overall, 13 of the 16 drill holes intersected pegmatites, with consistent intersections of flat-lying pegmatite logged from 70m vertical depth.

Interestingly, several samples fluoresced orange-pink under shortwave UV light. This is potentially a big positive because fluorescence in this colour range is often used to indicate the presence of spodumene within pegmatite samples.

Though, management concedes that it is not an exact method and many other fluorescent minerals are known. The presence or absence of spodumene will only be definitively determined by detailed mineralogical analysis.

The ASX mining stock advised that all pegmatite samples will be assayed, and further work will then be targeted towards mineralised zones.

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.

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