MetalsGrove joins morning gainers as geotechs unveil lithium pegmatites found on-site

MetalsGrove (ASX:MGA) shareholders and investors alike are keen to see lithium drilling kick off at Upper Coondina in the next three months as the company’s share price soars over 45% this morning. 

The news driving today's spike?

The discovery of lithium pegmatite outcrops identified in fieldwork activities on-site. 

The company’s Pilbara-based project is located in a busy lithium mining area and is now confirmed to host pegmatite dykes up to 30m in width at select areas on-site. Global Lithium (ASX:GL1) operates its Archer lithium project to the northeast. 

Furthermore, those dykes occur in a corridor like formation some 8km in length, meaning MetalsGrove has no shortage of target areas to sniff out with the drill rigs. 

That figure may explain why the price has jumped the way it has, even against the backdrop of a depressed global equities market (where commodities in particular are being hard hit.) 

Findings a delight: management

“We are delighted with these outcomes from our surface mapping program at Upper Coondina,” MetalsGrove MD Sean Sivasamy said. 

“Data obtained from the mapping program and other pre-drill works are being used to develop priority drill targets ahead of maiden drilling in fourth quarter.” 

“Exploration is continuing apace…given this project has never been systematically explored for lithium, we continue to be highly encouraged by these early stage findings.” 

Busy since listing in July

In August this year, the company’s price jumped 30% on early stage results from a soil sampling program providing evidence of lithium mineralisation on-site.

That soil data is now further supported by the discovery of pegmatite outcrops. While makeup of the rock bodies remains to be announced, spodumene often occurs in pegmatite rock. 

MetalsGrove first listed on the ASX in July after its IPO raised $6.4m at 20c; the company listed at 14.5c.

Despite forecasts lithium prices may come down off bullish highs in the near future from players such as Goldman Sachs, the Australian bourse continues to demonstrate its enthusiasm for lithium stocks. 

MetalsGrove's three month charts

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. MetalsGrove was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.