The Core Lithium Ltd (ASX: CXO) share price is catching the eye on Monday morning.
The lithium miner's shares burst out of the gates and stormed almost 10% higher to 11.5 cents.
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Why is the Core Lithium share price roaring higher?
Investors have been buying the company's shares this morning after responding positively to a golden announcement relating to its 100%-owned Shoobridge Project in the Northern Territory.
The company notes that the Mount Shoobridge gold prospect lies just 7km west of Agnico Eagle Mines' Cosmo Deeps gold mine, approximately 10km from the Stuart Highway, and approximately 60km from the idle processing facility at Union Reefs near the Pine Creek township.
The surrounding region hosts a number of multi-million ounce deposits, and with gold prices now at all-time highs, it believes that Shoobridge presents a strategic opportunity for Core Lithium beyond the Finniss lithium project.
According to today's announcement, Core Lithium's recent drill program focused on a 1km section of a 4.5km long trend of gold anomalism between an area north of Mount Shoobridge and the Old Company prospect.
Pleasingly, additional high-grade gold assay results were received from drilling at the Shoobridge Project. Management believes the results continue to support the deposit model of high-grade gold zones existing within a broad envelope of low-grade mineralisation. It notes that this is up to 60m wide and dipping steeply to the east.
It also highlights that historical drilling and its own rock chip sampling have demonstrated that the mineralisation occurs from surface. It feels that this presents a good opportunity for further exploration to define shallow mineralisation amenable to potentially low-cost mining and processing.
'Delivered strong results'
Core Lithium's CEO, Paul Brown, appeared to be very pleased with drilling activities at Shoobridge. He said:
Our exploration program at Shoobridge has delivered strong results, confirming the presence of shallow, high grade gold mineralisation that remains open along strike. These early successes enhance the project's prospectivity and provide a clear pathway for continued exploration.
Brown believes that if everything goes to plan, Shoobridge will great value for Core Lithium shareholders. He adds:
We have commenced a follow-up drill campaign targeting both depth extensions and new gold zones within the broader 4.5km mineralised trend. If results continue to be positive, along with the additional work underway at Shoobridge, we are on track to further expand and unlock the potential of the Mount Shoobridge asset, creating more value for Core Lithium shareholders.
Despite today's strong gain, the Core Lithium share price remains down a disappointing 65% over the past 12 months.
