Charger Metals: two potential lithium zones in the making

Charger Metals (ASX: CHR) is deserving of an electrifying pun after recent exploration activities suggest two large lithium pegmatite zones at its Bynoe Lithium Project in the Northern Territory. 

Charger shares opened 15.5% higher as the market opened, before reaching intraday highs of 35.3% within the first few minutes of trade.

The results have caught the attention of investors and traders alike, with volumes sitting at 3.0m at 2:00 pm, compared to a 20-day average of around 407,000.

A large lithium system is brewing 

“Charger’s 2021 geochemistry program has very successfully outlined two large pegmatite emplacement zones …” said CEO David Crook.  

“The interpretation of all geochemistry results suggest a large lithium-mineralised system and provides Charger with an exploration roadmap, enabling prioritisation of the most significant drill-ready targets while identifying areas that need further infill soil sampling and mapping,” he added. 

Charger is targeting a maiden drill program for Bynoe at the end of NT's wet season, which typically spans from November to April.

A nearology play? 

The Bynoe project is located approximately 10km away from Core Lithium’s (ASX: CXO) flagship Finniss Lithium Project.

Core Lithium is shaping up to be Australia's newest lithium producer, forecast to come online in the second half of 2022.

The company's stock is already up 43% year-to-date, boasting a market cap of $1.5bn.

Charger has not shied away from the potential nearology narrative, with the announcement pointing to Core Lithium's recent drilling activities that have intersected high grade spodumene mineralisation and lithium-fertile pegmatites.

While Core Lithium has ballooned itself to a billion dollar company and on the verge of production, Charger is in its early days with a market cap of just $18.6m.