Essential Metals’ (ASX:ESS) share price is up 5.8% in early afternoon trades as company geos flag high grade lithium assay results.
Based on this success, management is planning to expand the mineral resource attached to the Pioneer Dome project in the near future.
A new mining lease application covering extended mineralisation beyond current permit boundaries will be submitted in late August and is expected to be received by November.
What’s all this about high grades?
Essential metals has extracted a number of cores from two key targets on-site, the Cade Deposit and Davy Deposit.
Investor advisory firm Next Investors notes projects with lithium concentrations in cores over 1% total density are considered high-grade.
Essential Metals has posted five substantial cores with concentrations above 1%, making them high grade—and the cores are also from relatively shallow depths.
Broken down, those results are:
19.2m @ 1.44% lithium from 15m depth
23.7m @ 1.26% lithium from 3.6m depth
18.9m @ 1.25% lithium from 21.1m depth
31.95m @ 1.24% lithium from 45.4m depth
18.7m @ 1.05% lithium from 17m depth
Extensional drilling in August
In boosting its mineral resource, Essential Metals will commence RC extension drilling at the Davy Deposit next month, to test just how much more lithium is sitting out there.
Likewise, drilling at Cade will test just how deep lithium goes underground.
If successful on both counts (lithium found further out at Davy, and deeper down at Cade,) the company will be well placed to upgrade its 2012 JORC mineral resource estimate.
The bottom line? Higher prospects of bankability, and a higher chance of a successful investment decision.
Essential Metals having a very good 2022
Compared to mid-July 2021, Essential’s share price is up a whopping 160%.
On that same twelve month basis, the company’s share price is outperforming the ASX200 by 170.3%.
Year to date (YTD) performance since January 1 2022 sees the price up 87%, though, it has lost -15% on a one month basis.
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