The Latin Resources Ltd (ASX: LRS) share price is soaring on Monday morning on the back of more promising drilling results.
The lithium company's shares surged 10.53% to 21 cents in early trade before retreating to 20.5 cents at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.58% so far today.
Let's take a look at why this ASX lithium share is in the green.
Why is the Latin Resources share price rising?
Latin Resources reported "outstanding" results from two diamond drill holes at the Salinas Lithium Project in Brazil.
The company said the results show more high-grade lithium in pegmatites including a peak of two metres at 3.07% lithium oxide in drill hole SADD004. At the SADD003 site, drilling intersected a peak of 1.9m at 2.13% lithium oxide.
These results give the company confidence to scale up the drilling team to fast track mineral resource definition drilling.
Latin Resources also intersected more spodumene at drill hole SADD011 to the north of previous drilling at the site.
Commenting on the results, Latin Resources managing director Chris Gale said:
These new assay results from the latest two holes drilled in the South Target Area of the Salinas Lithium Project, are once again extremely pleasing.
We have now confirmed our initial observations that the logged lithium bearing pegmatites are increasing in thickness as we move south, while maintaining the very high-grades seen in the first two holes.
We have now confirmed spodumene bearing pegmatites over a continuous strike length approaching one kilometre.
The company expects to report more results within the next few weeks.
Latin Resources share price snapshot
The Latin Resources share price has soared 294% in the past year while rocketing 607% year to date.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 7.5% in the past year.
Latin Resources has a market capitalisation of about $332 million based on its current share price.
