Core Lithium share price storming higher on 'excellent' exploration results

ASX investors are sending Core Lithium shares flying higher today.

| More on:
Miner standing in front of trucks and smiling, symbolising a rising share price.

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 11 cents. In morning trade on Wednesday, shares are swapping hands for 11.8 cents apiece, up 6.8%.

For some context, the All Ords is up 0.6% at this same time.

This outperformance comes after the miner released a promising update on its lithium exploration drilling campaign.

Here are the highlights.

Core Lithium share price lifts off on drill results

ASX investors are bidding up the Core Lithium share price after the miner reported "excellent new lithium drilling results" at its flagship Finniss Lithium Project, located in the Northern Territory.

Core said that initial assays from RC (reverse circulation) drilling at its Blackbeard prospect with Finniss intersected wide zones of spodumene mineralisation.

Top results included 63 metres at 1.67% Li2O from 166 metres, including 20 metres at 2.09% Li2O from 208 metres.

Likely offering a boost to the Core Lithium share price today, management noted that the latest batch of results, together with those previously reported for its nearby Centurion prospect, demonstrate mineralised pegmatites exist along a clearly defined 600 metre strike length within the Core Lithium's mining lease.

The miner has been focusing its exploration campaign on testing large-scale pegmatite targets, which can potentially lower production costs. With those lower costs in mind, the recent drill results come from prospective targets that are all within 20 kilometres of the Grants Processing Facility.

What did management say?

Commenting on the drill results helping boost the Core Lithium share price, CEO Paul Brown said:

The results from Blackbeard are highly encouraging and indicate we have discovered a large, highly mineralised pegmatite within a short distance of our processing infrastructure, consistent with the key objective of our 2024 field season.

Blackbeard is up to 45 metres wide and open at depth. Further drilling will be completed to determine the ultimate scale of the system. This will support a future Mineral Resource Estimate and have potential to be incorporated into our ongoing restart studies.

As you're likely aware, Core Lithium suspended mining operations at Finniss at the start of 2024 as the company awaits a material recovery in depressed global lithium prices.

But the All Ords lithium stock remains on track with its restart studies.

In the company's September quarterly update, Core reported that those restart studies are set for completion in the second half of FY 2025, with Finniss being maintained in a state of operational readiness.

Core's recently appointed Chief Operating Officer, James Bruce, is overseeing the restart work.

With today's intraday gains factored in, the Core Lithium share price remains down 68% 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 guys in shirts and ties give the thumbs down.
Materials Shares

Here's why the South32 share price is being smashed today

Let's see why investors are hitting the sell button on Wednesday.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Materials Shares

Why this broker just upgraded Pilbara Minerals shares to a buy rating

Bell Potter has just turned bullish on the lithium miner. But why?

Read more »

ASX share price rise represented by investor riding atop leaping lion
Materials Shares

Up 8%: What's going on with the Liontown share price today?

Lithium stocks are some of the biggest winners so far this Tuesday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Materials Shares

Why is the Pilbara Minerals share price jumping 10% today?

Let's find out what is putting a rocket under this stock today.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery
Materials Shares

Guess which ASX copper stock could be the best to buy now

Ord Minnett is very bullish on this copper miner. But why?

Read more »

a small child carrying a brief case tries to reach an elevator button outside closed elevator doors.
Materials Shares

Why are short sellers fleeing from Pilbara Minerals shares?

Are the shorters finally calling a bottom for Pilbara?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Materials Shares

Why is this ASX 200 mining stock crashing 9% today?

Let's find out why this mining stock is being sold off by investors on Friday.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Will 2025 be a good year for the BHP share price?

Let's see what analysts are predicting for the Big Australian next year.

Read more »