The Essential Metals Ltd (ASX: ESS) share price is plummeting on news of its recent drilling campaign.
The company has announced its Dome North drill program doesn't appear to have found any lithium-mineralised pegmatite.
At the time of writing, the Essential Metals share price is 17.5 cents, 20.45% lower than its previous closing price.
Let's take a closer look at today's announcement from the exploration and mining company.
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Essential Metals' worrying announcement
The Essential Metals share price is plunging on news of the company's Pioneer Dome Lithium Project.
The update was filled with optimism about the project's future development but the market's sentiment might be lingering on its lack of spodumene.
Essential Metals noted, "geological logging of the drill chips does not indicate the presence of visual spodumene".
However, the company doesn't expect to receive assay results from its Dome North drill program until early-to-mid-October.
While the findings have seemingly disappointed the market, the company said they're important for future targeting of pegmatites in and around the underexplored Dome North Resource.
Further, Essential Metals is planning a new phase of drilling for the final quarter of 2021 in hopes of upgrading the project's Cade and Davy deposits. Currently, the deposits are 'inferred' and the company wants to boost them to 'indicated'.
Though, the company noted that diamond drill rigs are hard to come by right now. It's doing what it can to secure the needed drill rigs.
It is also undertaking studies needed to receive regulatory approvals and advance the project's technical and financial studies.
These include scoping studies, surveys of flora and fauna and groundwater sources, and preparations for a mining lease application.
Essential Metals expects the studies will be finished by December and a mining lease will be granted in 6 to 12 months.
Essential Metals share price snapshot
Despite today's notable dip, the Essential Metals share price has been performing well on the ASX lately.
It is currently 118% higher than it was at the start of 2021. It has also gained 25% since this time last year.
