If the standard principles of technical analysis are anything to go by, Trading Central has a bullish signal on Global Lithium Resources (ASX: GL1) which indicates the stock price may rise from a close of $0.64 to a range of $0.85 to $0.91 over the next 31 days.
Shareholders in Global Lithium (marketcap $69m) have experienced a wild ride since the company listed on the ASX in May, with the share price recently hitting an all-time high of $0.81.
While the stock has since bounced lower it was up 2.36% in early morning trade and is up over 200% in the last seven months.
The last share price rally, late November, followed Global Lithium’s the release of significant lithium assay results from its ongoing CY4Q Exploration Program at the Marble Bar Lithium Project (MBLP).
Global Lithium has a 100% controlling interest in MBLP which is 150km southeast of Port Hedland in the Pilbara Region of WA.
Strong spodumene lithium results
Returning strong spodumene lithium results, the first 14 reverse circulation (RC) holes - totalling 1,770 metres of drilling - highlights multiple lithium intersections within MBLP.
These findings validate potentially developing the area and extending the Archer deposit.
Global Lithium managing director Jamie Wright noted that while only a small portion of assays have been received to date, the results are very encouraging.
“The initial assay results, combined with the discovery of a new pegmatite zone within the road reserve so close to Archer, certainly highlights the underexplored nature of the MBLP,” Wright said.
Drilling was expected to continue through December with the last assays expected in the first quarter of next year.
Global Lithium plans to incorporate the results into an updated mineral resource next year.
There is no consensus rating on this stock.
Based on Morningstar’s fair value of $0.78 the stock appears undervalued.
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