Pilbara Minerals Ltd (ASX: PLS) shares are jumping on Wednesday morning.
At the time of writing, the lithium miner's shares are up 10% to $1.49.
Image source: Getty Images
Why are Pilbara Minerals shares jumping?
Investors have been buying the company's shares this morning after it revealed a significant upgrade to the mineral resource at its 100%-owned Pilgangoora Operation in Western Australia.
This is Pilbara Minerals' flagship asset and already ranks among the largest hard-rock lithium projects globally.
According to the release, the company's latest drilling efforts have delivered a substantial 23% increase in contained lithium across its Measured, Indicated and Inferred resources.
As it stands, the total resource now weighs in at 446Mt at 1.28% lithium oxide (Li₂O), 122 ppm tantalum pentoxide, and 0.59% iron oxide. That equates to a whopping 5.7Mt of contained lithium oxide — enough to reinforce Pilgangoora's place among the top-tier global lithium.
Pilbara Minerals' managing director and CEO, Dale Henderson, was understandably very pleased with the update. He commented:
The significant uplift in the Mineral Resource reaffirms our 100% owned Pilgangoora Operation as one of the world's largest and highest-quality hard rock lithium assets. This outcome is aligned with our strategy to optimise the operating base and unlock the full potential of this world-class asset, driving long-term value for our shareholders.
What drove the increase?
The company credits the upgrade to an extensive 104,672-metre drill campaign conducted during FY 2024 and FY 2025, targeting down-dip extensions across more than 7 kilometres of strike length.
The drilling revealed not just more lithium, but higher grades than previously recorded. The average grade across the resource lifted from 1.15% Li₂O to 1.28% Li₂O. This is a 12% improvement. Much of this boost came from newly identified high-grade zones in the Central Extension.
It is also worth noting that mineralisation remains open along strike, with areas like the Bridge Zone still untested below 200 metres. This means that there is potential for further increases once market conditions support additional exploration.
What's next?
While Pilbara has moderated exploration activities recently as part of broader cost-saving initiatives, this latest update demonstrates the company's capacity to grow its resource base even amid softer lithium prices. Henderson added:
The upgrade further consolidates PLS' position as a leading global lithium supplier. It reflects the fundamental strengths of our business – large-scale, high-quality assets, disciplined operations, a diversified supply chain, and a strong balance sheet. These strengths provide the resilience to navigate current market conditions, while preserving the flexibility to scale as the lithium market transitions to its next phase.
Pilbara Minerals shares remain down over 50% during the past 12 months despite this rebound.
