MetalsGrove jumps 30% on soil program start at flagship WA lithium project

MetalsGrove (ASX:MGA) has officially kicked off its Upper Coondina lithium project in the Pilbara, WA, with a 2,500 sample surface sample program. 

Surface samples are to precede an airborne magnetic survey to progress once samples are logged and collected, which in turn will be followed by the first drill rig to sink a hole on-site before 2023. 

Shareholders are likely enjoying the news, with MetalsGrove’s shares jumping up to 13c on the news; an increase of 30% staying strong in the last hour of trade. 

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

A rise back to 13c based on nothing more than the commencement of a soil program demonstrates the health of market interest in the battery metals explorer. 

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. 

Surface samples to investigate untested magnetic target 

The 2,500 samples collected over the coming weeks will be largely taken from earth on top of a large untested magnetic anomaly identified in earlier airborne studies. 

That anomaly is located in the western segment of the company’s permit boundaries, northwest of the Coondina NW target (which straddles the southern border of the acreage.) 

Across the entire Upper Coondina play, no serious lithium exploration has been carried out in the area. Prior surface sampling has returned a number of highly anomalous lithium assays. 

Those assays were broken down into parts per million (ppm) reads, which likely on their own would not cause too much interest. But the consistent evidence of lithium mineralisation on site at surface suggests shallow deposits of thick mineralisation may occur in the area.

MetalsGrove is 1.5c off being where it was when it first listed a month ago as the first exploration run at Upper Coondina since trading kicked off

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.