The Latin Resources Ltd (ASX: LRS) share price exploded today following a lithium project update.
At one stage, this ASX lithium share surged 18% to 19.5 cents. The company's shares have since retreated and are trading at 18.75 cents, a 13.64% gain, at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.76% so far today.
Let's take a look at why this ASX lithium share is surging.
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Why is this ASX lithium share rising?
Latin Resources has secured a new 50-hectare lithium tenement at the company's Salinas Lithium Project in Brazil.
Under the exclusive agreement, Latin has acquired a 100% interest in the tenement to the east of the company's existing Bananal Valley project.
The company's geology team has already identified outcropping pegmatites containing high-grade lithium at the site.
Latin now has access to more than 5,350 hectares of land in the newly-defined Salinas lithium corridor.
Latin Resources executive director Chris Gale said the company is very confident the tenement contains additional drill-ready, high-grade lithium pegmatites. He added:
Our reconnaissance mapping and outcrop sampling of this area has shown that the grades of surface samples from these pegmatites are as high as those from our early sampling to the west where we are currently drilling.
Latin will be mobilising drilling rigs to the new Monte Alto tenement area to commence drilling. Gale added:
This new area now puts us well and truly in the driver's seat to produce more compelling drilling results to achieve our objective of a JORC resource. We are also looking forward to receiving the assay results on holes three and four over the next week.
Latin Resources share price snapshot
The Latin Resources share price has soared 253% in the past year while rocketing 520% year to date.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 8% in the past year.
Latin Resources has a market capitalisation of about $290 million based on its current share price.
