Up 1,700% in a year, why is the Wildcat Resources share price gaining again today?

The ASX lithium share intends to ramp up its exploration activities.

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The Wildcat Resources Ltd (ASX: WC8) share price has been a top performer over the past 12 months, up an eye-popping 1,700%.

And shares in the ASX lithium explorer are gaining again today.

The Wildcat Resources share price closed yesterday trading for 54 cents. In earlier trade, shares were changing hands for 51.5 cents apiece, down 4.7%. At the time of writing, they've rebounded to 55.0 cents, seeing the stock up 1.9%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.2% at this same time.

Here's what's going on.

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Image source: Getty Images

Wildcat Resources share price gains on positive quarter

The Wildcat Resources share price is back in the green following the release of the company's quarterly update.

The company noted that over the three months through to the end of December it had drilled more than 22,760 metres at its Tabba Tabba Lithium Project, located in Western Australia.

Management said it had "maintained an aggressive drilling program" since the miner began drilling in July. They credited this effort to Wildcat's "major lithium discovery" at Tabba Tabba, announced on 18 September.

Drilling at Tabba Tabba is ongoing. The update cited numerous significant intersections hit during the quarter, including "very thick and high-grade" intercepts. The project is located on granted Mining Leases close to Port Hedland, with Wildcat reiterating it has "potential to host a Tier 1 Lithium deposit".

The company noted that during the Christmas break, site facilities and roads at Tabba Tabba were upgraded. This is intended to enable continued operations "in almost all-weather conditions," paving the way for increased exploration and drilling activities in Q1 2024.

Potentially throwing up some headwinds for the Wildcat Resources share price were the "significant cash outflows" during the quarter. These included $7.8 million for exploration and evaluation activities and $2.5 million for staff, administration, and corporate costs.

On the other side of the ledger, however, Wildcat Resources reported cash inflows from financing activities of $100 million (before costs) from its completed capital raising.

As at 31 December, the company had available cash of approximately $94 million.

Motley Fool contributor Bernd Struben 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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