Wildcat Resources Ltd (ASX: WC8) shares are having another positive session.
In morning trade, the ASX lithium stock was up as much as 11% to 35 cents.
This meant that Wildcat's shares were up a remarkable 75% since this time last month.
And while the lithium explorer's shares have pulled back a touch since the open, they remain up 5% to 33 cents at the time of writing.
Why is this ASX lithium stock surging today?
Today's gain has been driven by the release of drilling results from the Tabba Tabba Lithium Project.
According to the release, the lithium explorer has delivered further high-grade lithium results from multiple pegmatites. It believes this highlights the growing potential of the project, which is near Port Hedland in the Pilbara region of Western Australia.
Management notes that recent drilling at Tabba Tabba focused on extending the Luke Pegmatite to the south, delineating extensions to high-grade zones in Leia, and identifying additional near-surface mineralisation in adjacent pegmatites (The Hutt and Chewy). Notice a theme here?
Results from drilling continue to demonstrate thick, high grades at the Leia Pegmatite and have extended the Luke Pegmatite in the south. Furthermore, drilling on the surrounding pegmatites continues to identify shallow zones of mineralisation in the Chewy and The Hutt pegmatites, which overlie Leia.
In respect to Leia, the drilling data resulted in increased confidence and continuity of high-grade zones. It notes that an example of this is hole TADD042, which targeted the interpreted position of Leia adjacent to a Proterozoic dyke.
The hole intercepted 50.3m @ 1.2% Li2O from 237m including 28m @ 1.6% Li2O from 259m, which indicates that the dyke is less extensive than originally modelled. This has resulted in increased pegmatite volumes in this area.
What else is driving its shares higher?
Also giving this ASX lithium stock a boost in recent weeks has been improving sentiment in the lithium industry.
While lithium prices continue to remain low, investors appear optimistic that improvements are on the way.
And with Rio Tinto Ltd (ASX: RIO) in takeover talks with Arcadium Lithium (ASX: LTM), this has given longer term sentiment a boost. Clearly, Rio Tinto thinks there's money to be made in lithium.
In addition, given how the Tabba Tabba Lithium Project is in close proximity to some of the world's largest hard-rock lithium mines, investors may believe that Wildcat Resources could be an attractive takeover option if industry consolidations continues.
