Up 20% in a week, why is the Core Lithium share price racing higher again today?

Investors are bidding up the Core Lithium share price again today. But why?

| More on:
Female miner smiling at a mine site.

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

The Core Lithium Ltd (ASX: CXO) share price is surging higher today.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 9.7 cents. In late morning trade on Thursday, shares are changing hands for 10.2 cents apiece, up 5.2%.

For some context, the All Ords is up 0.9% at this same time.

In a welcome turnaround, today's gains see the embattled Core Lithium stock up 20% since last Wednesday's close.

Here's what's spurring ASX investor interest today.

What's boosting the Core Lithium share price?

Investors are bidding up the Core Lithium share price after the miner announced it had commenced reverse circulation (RC) drilling at its 100% owned Shoobridge Project, located in the Northern Territory.

The Shoobridge drilling campaign is part of Core's FY 2025 exploration program.

Today's announcement comes on the heels of the miner's preliminary FY 2024 results, released yesterday.

Commenting on Core's exploration plans following on those results, CEO Paul Brown said:

Our strategic focus will be on making Finniss a more robust operation in the future, and exploration is a key enabler of this.

In FY 2025, we will be drill testing priority targets around Finniss, potentially adding meaningful life to future lithium mining operations. We will also be advancing earlier stage, low multi-commodity exploration activities.

Today, the All Ords lithium stock announced that it is the first company to explore and drill the "prospective, potentially spodumene-rich, pegmatite systems" at Shoobridge for lithium.

Core also considers the area prospective for gold, with a known gold anomalism extending over a strike length of 4.5 kilometres. Uranium and base metals have also been found in the area.

Commenting on the commencement of the drill program that's lifting the Core Lithium share price today, Brown said, "We are thrilled to start the first ever lithium drilling program at Shoobridge. This marks the start of an exciting FY25 exploration program for Core, and we look forward to delivering results that capture the value inherent in our tenement portfolio."

Brown added:

We will be disciplined in our approach to exploration and pursue opportunities for meaningful mineral discoveries or with the potential for a high return on investment.

While we are firmly focussed on positioning the Finniss Lithium Project for a future restart, we are excited by projects such as Shoobridge that both support this objective and provide complementary growth opportunities.

The company highlighted that "a significant portion" of its FY 2025 exploration budget will go towards advancing and testing lithium targets with the goal of identifying substantial deposits within trucking distance of its Finniss lithium processing plant.

Despite the past week's strong run, the Core Lithium share price remains down 89% over 12 months.

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.

More on Materials Shares

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

Fortescue share price falls after cost-cutting decision

The mining giant is cutting down its workforce materially to save money.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Materials Shares

Could BHP shares provide an 18% return for investors?

Let's see what Goldman Sachs is saying about this mining giant following its update.

Read more »

Two young risk-taking men pose for the camera as they jump off a cliff into the sea.
Materials Shares

How risky is buying ASX lithium shares right now?

Despite recent losses, this fund manager is holding onto these top ASX lithium stocks. Here’s why.

Read more »

A person wears a roaring lion mask.
Materials Shares

Who is buying 55,000 Liontown shares this week?

Lithium prices remain at multi-year lows, but this insider is putting $53,350 into the industry.

Read more »

Miner looking at a tablet.
Materials Shares

Core Lithium share price rockets 14% amid 'positive achievements'

Investors are sending the Core Lithium share price surging today. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

BHP share price on watch after record-breaking FY24 iron ore production

BHP's iron ore operations were on form during the fourth quarter and full year.

Read more »

Miner looking at his notes.
Materials Shares

Should you buy Rio Tinto shares after the miner's update?

Let's see what analysts at Goldman Sachs are saying about the mining giant.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Materials Shares

Own Pilbara Minerals shares? Here's what to expect from next week's Q4 update

Here's what the market is expecting from the lithium miner.

Read more »