Core Lithium shares jump 9% on 'exceptional' exploration results

This lithium miner's shares are having a positive finish to the week.

| More on:
Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue 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

Core Lithium Ltd (ASX: CXO) shares are catching the eye on Friday.

In morning trade, the struggling lithium miner's shares are up a sizeable 9% to 18 cents.

Why are Core Lithium shares jumping?

Investors have been buying the company's shares today in response to the release of announcement relating to the exploration programs completed during the 2023 field season.

According to the release, final assays have been received from the drilling and geochemical programs with encouraging results. Management believes these demonstrate the prospectivity of the entire Finniss project area.

It highlights that wide zones of spodumene mineralisation were intersected in drilling at the high priority Ah Hoy and Seadog prospects. These results suggest the potential for these two adjacent prospects to form part of a larger cluster of mineralised pegmatites.

As things stand, Core Lithium is still interpreting the results and updated resource models are expected to be announced next month.

What's next?

The exploration continues at Finniss in 2024. Its focus will be on testing large scale pegmatite targets which can potentially sustain lower cost production. This could be very important in the current environment of low lithium prices.

Outside Finniss, exploration will also focus on unlocking value in Core Lithium's regional lithium, uranium, and gold targets in the Northern Territory and South Australia. Details on the company's new exploration strategy and budget will be provided during the next quarter.

'Exceptional results'

Core Lithium's interim CEO, Doug Warden, was very pleased with the drilling results. He said:

The exceptional results from Ah Hoy and Seadog have successfully increased our confidence in the existence of a cluster of mineralised pegmatites. The close proximity of these prospects and others yet to be tested, could benefit any future development study outcomes. We are excited about the implications of these new results, together with earlier results, for our resource update to be released next month.

Warden was also feeling pleased about the potential for the company to lower its production costs and unlock value in other projects. He adds:

It is pleasing to see that our exploration strategy of finding larger pegmatite targets to drive future low cost production at Finniss is gaining momentum. I am very excited by the exploration potential that exists, not only within our main project at Finniss, but also at our other projects within the Northern Territory, where we will be looking to unlock the value in future exploration programs.

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

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Materials Shares

Guess which ASX lithium stock is rocketing 15% on big news

Why are investors buying this lithium share on Wednesday?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Mineral Resources share price tumbles amid ongoing lithium price weakness

ASX 200 investors are bidding down the Mineral Resources share price on Wednesday.

Read more »

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.
Materials Shares

Fortescue share price tumbles on Q3 disappoinment

How did this iron ore giant perform during the third quarter?

Read more »

Australian notes and coins symbolising dividends.
Materials Shares

BHP is paying $2.30 per share in dividends. Time to buy the stock?

Do analysts think the Big Australian is a buy?

Read more »

Man on a laptop thinking.
Materials Shares

Are Core Lithium shares dirt cheap or overvalued?

This lithium miner's shares have lost 84% of their value over the last 12 months.

Read more »

Miner looking at a tablet.
Materials Shares

3 key takeaways for ASX lithium share investors from Pilbara Minerals report

What can ASX lithium share investors learn from Pilbara Minerals' latest sales and production results?

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Materials Shares

Here's what brokers are saying about Pilbara Minerals shares

Is this lithium miner a buy following last week's update?

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Materials Shares

1 ASX All Ords stock that turned $10,000 into $720,000 in less than 5 years

Mouth-watering returns have been delivered by this stock. But why?

Read more »