Why did this ASX lithium share soar 18% today?

It's been a bright start to the day for one ASX minerals explorer.

| More on:
a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.

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

Key points

  • This ASX lithium share shot up 18% in early trading on Wednesday
  • The Latin Resources share price has gained 520% in 2022 so far
  • The company has secured a new 50-hectare lithium tenement in Brazil 

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.

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.

Should you invest $1,000 in Latin Resources right now?

Before you buy Latin Resources 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 Latin Resources 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

The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Resources Shares

Miner looking at a tablet.
Resources Shares

Up 73% since April, why Mineral Resources shares could keep charging higher

A leading expert says that Mineral Resources shares remain ‘heavily undervalued’. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

Miner looking at a tablet.
Resources Shares

What's the latest broker ratings on BHP shares?

There's an air of caution floating about BHP shares even with bullish ratings.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

BHP shares last traded at $50 in 2023. When will they get back there?

Let’s dig into the potential for BHP shares to rise.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 21% on 'exceptional' results

Investors are sending the ASX All Ords stock flying higher on Wednesday. But why?

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Resources Shares

Guess which prominent Super fund just offloaded its remaining Mineral Resources shares?

This super fund has had enough.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Broker names 10 ASX mining stocks set to outperform following Macquarie Conference

Twenty-two ASX mining companies presented at the annual Macquarie Conference last week.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »