The Patriot Battery Metals Inc. CDI (ASX: PMT) share price soared 11.25% higher on Thursday after the company released new lithium drilling results.
The ASX lithium stock rose to an intraday high of 89 cents before settling back to 87 cents, up 8.7%, at the time of writing.
Today's rise means Patriot Battery Metals has more than recovered its share price losses from yesterday.
The miner's shares fell 5.39% on Wednesday following news that a nine-month memorandum of understanding (MOU) with Albemarle Corp (NYSE: ALB) had concluded and would not be extended.
Let's take a look at those drilling results.
Image source: Getty Images
Patriot Battery Metals share price rises on drilling results
Patriot Battery Metals has released a new batch of core assay results for drill holes completed this year at the CV5 spodumene pegmatite at its Corvette Lithium Project in Quebec.
The results show "continued strong lithium mineralization over wide intervals" from infill drilling.
Here are some details:
- 122.5 m at 1.42% Li2O, including 35.8 m at 2.15% Li2O (CV24-405)
- 71.4 m at 1.57% Li2O, including 14.2 m at 3.15% Li2O (CV24-435)
- 68.7 m at 1.56% Li2O and 22.5 m at 1.04% Li2O (CV24-414)
- 74.9 m at 1.28% Li2O, including 28.1 m at 2.28% Li2O (CV24-423A)
- 53.0 m at 1.22% Li2O, including 25.0 m at 1.65% Li2O (CV24-450).
The CV5 spodumene pegmatite has a maiden mineral resource estimate (MRE) of 109.2 Mt at 1.42% Li2O inferred. Patriot Battery Metals is hoping for results that will support an upgrade from an inferred to an indicated MRE. The company is now awaiting results from 67 more drill holes in the C5 zone.
The company is also waiting for results from 44 drill holes in the newly discovered high-grade C13 zone. Patriot is targeting a maiden C13 resource estimate in the third quarter of this year.
What did management say?
Darren L. Smith, Vice President of Exploration, commented:
Another round of CV5 core assays from our infill program and it continues to deliver to expectations.
Coupled with the new highgrade discovery at CV13, the 2024 winter program's results continue to demonstrate the quality and scale on show at Corvette.
What's next for the Corvette Lithium Project?
As we covered yesterday, Patriot Battery Metals and Albemarle had been assessing partnership opportunities to study the viability of a downstream lithium hydroxide plant in Canada or the United States for the Corvette Project.
Albermarle is Patriot's biggest shareholder with a 6.4% stake.
With the MoU concluded, Patriot now intends to talk to other downstream companies in the lithium supply chain.
Management said interest from other potential partners had risen as the scale and quality of the Corvette Project had become increasingly clear.
Patriot Battery Metals president and CEO Ken Brinsden said they were "excited by the intense market interest in the Corvette project".
Brinsden said:
As we move forward, Patriot is eager to expand its operations and explore new partnerships that support the growing demand for lithium raw materials and chemicals in North America and Europe.
We also look forward to continuing our productive relationship with Albemarle in a flexible, non-exclusive format.
