Why the Lake Resources (ASX:LKE) share price jumped 16% to a 52-week high

The Lake Resources N.L. (ASX:LKE) share price is surging higher on Tuesday. Here's why the lithium miner's shares are at a 52-week high…

| More on:
Chalk-drawn rocket shown blasting off into space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Lake Resources N.L. (ASX: LKE) share price has continued its positive run on Tuesday.

Earlier today the lithium-focused mineral exploration company's shares were up 16% to a 52-week high of 18 cents.

Why is the Lake Resources share price at a 52-week high?

This morning Lake Resources announced that shallow drill testing is underway on-site at its flagship Kachi Lithium Brine Project, Argentina. This is part of the development activities required for the Definitive Feasibility Study (DFS).

According to the release, geophysical studies have assisted the planning of the shallow wells. These will be followed by further geotechnical studies, in addition to recent works conducted on proposed sites for Lilac Solutions' direct lithium extraction demonstration plant and for the future production plant.

Pleasingly, the company advised that it is well financed for the DFS and these activities. Late last year it raised ~$3.4 million through its controlled placement agreement with Acuity Capital. These funds will be used towards the Kachi DFS, further exploration, and working capital.

Novonix update.

In addition to this, the company provided an update on its work with Novonix Ltd (ASX: NVX).

The release explains that Novonix continues its test work on Lake's high purity lithium carbonate.

If all goes to plan, this will be used together with commercial battery cathode precursor materials to form a NMC622 cathode that will then be processed into NMC622 lithium-ion batteries for testing.

Management notes that this will enable Lake and its potential customers to make direct comparisons of Lake's lithium product's performance in familiar battery chemistries. Initial indications are anticipated to be reported next month.

Lake's Managing Director Steve Promnitz commented: "Lake has started 2021 on the front foot by formally launching our Kachi DFS, and ramping up engagement with investors and potential industry partners. Interest in the sector has never been stronger in environmentally responsible, direct lithium extractions."

Investors will no doubt be watching the Lake Resources share price closely in February when the results from the tests are released.

Should you invest $1,000 in Lake Resources N.l. right now?

Before you buy Lake Resources N.l. shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Lake Resources N.l. wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on 52-Week Highs

Five happy friends enjoying a party.
52-Week Highs

5 ASX 200 shares smashing new 52-week highs today

The Trump tariff relief rally has helped send these five ASX 200 shares to new 52-week highs.

Read more »

Arrows pointing upwards with a man pointing his finger at one.
52-Week Highs

3 ASX All Ords shares at new 52-week highs this Friday

These shares are proving to be a safe harbour this Friday.

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak representing two ASX 200 shares reaching multi-year high prices today
52-Week Highs

These 4 ASX 200 shares just clocked new 52-week highs today

These shares are standing out from the crowd today.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
52-Week Highs

8 ASX 300 shares hitting new price highs today

New share price records were set despite the broader market trading in the red.

Read more »

Three people jumping cheerfully in clear sunny weather.
52-Week Highs

5 ASX 200 stocks hitting new 52-week highs today

These stocks are pushing higher today despite the shaky market...

Read more »

Piggy bank rocketing.
52-Week Highs

ASX shares lifting to 52-week highs on Friday

Do you own any of today's winners?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
52-Week Highs

These 9 ASX 200 shares just hit new 52-week highs

Let's check them out.

Read more »

Man on a ladder drawing an increasing line on a chalk board symbolising a rising share price.
52-Week Highs

6 ASX 200 shares hitting new 52-week highs today

These shares are defying today's market sell-off.

Read more »