The Core Lithium Ltd (ASX: CXO) share price is having a strong session on Wednesday.
In morning trade, the lithium miner's shares are up 10% to 10.5 cents.
Image source: Getty Images
Why is the Core Lithium share price roaring higher?
Investors have been scrambling to buy the miner's shares today after it released drilling results from the 100%-owned Shoobridge Project in the Northern Territory. It is located ~160km by road south of the Finniss lithium processing plant.
According to the release, a total of 28 reverse circulation (RC) drill holes covering 3,535 metres were completed at Shoobridge during July and August. This drilling program was targeting gold and lithium across five prospect areas at the project.
Assay results from 21 holes have now been returned and investors are liking what they have seen.
Management notes that shallow gold mineralisation was intersected, including a standout intercept of 2m @ 12.9g/t Au from 54 metres. In addition, the company notes that lithium mineralisation of up to 1.41% Li2O at Barretts and tin mineralisation of up to 3.52% SnO2 at China Hill further underscore the project's multi-commodity potential.
The remaining drill results are expected to be received later this month, with approvals in place for additional drilling and further ground-based targeting work ongoing.
Speaking of which, an expanded drilling program is planned, along with a review of historical drill data, targeting a maiden gold JORC (2012) Mineral Resource Estimate. The good news is that management believes that the best gold targets are still yet to be drilled.
'Very encouraging'
Core Lithium's CEO, Paul Brown, was pleased with the drilling results and the potential for a multi-commodity asset. He said:
Shoobridge is a prime example of the multi-commodity potential that exists across our Northern Territory exploration projects. In addition to pegmatite fields known to be prospective for lithium Shoobridge also contains, high-grade quartz-hosted gold. Returning drill hits with grades up to 12.9 g/t gold in a new area is very encouraging and builds a strong case for follow-up activities targeting gold.
Our exploration program will remain weighted towards lithium targets within trucking distance of our Finniss infrastructure. However, demonstrating the potential to find a high-grade gold deposit provides us with optionality in this strong gold price environment. Shoobridge is one of several areas that will be advanced in the current field season, with gold and lithium targets currently being tested closer to Finniss. We look forward to keeping shareholders updated on our progress in the weeks and months ahead.
The Core Lithium share price remains down by approximately 60% since the start of the year.
