Critical Resources share price leaps 12% on latest lithium project news

Shares in the emerging base metals company are up and away today.

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Key points
  • Critical Resources shares advance 12.33% to 8.2 cents on Tuesday
  • The company encountered visual spodumene from its most recent four drill holes at the Mavis Lake lithium project
  • Work has commenced to the extend drilling campaign from its inaugural 5,000 metres to 10,000 metres

The Critical Resources Ltd (ASX: CRR) share price is soaring higher on Tuesday following the company's latest drilling results.

At the time of writing, the base metals and lithium exploration company's shares are up 12.33% to 8.2 cents.

a miner holds his thumb up as he holds a device in his other hand.

Image source: Getty Images

Critical Resources encounters visual spodumene

Investors are keen to get a hold of Critical Resources shares after the company revealed high-grade visual estimates.

According to this morning's company announcement, Critical Resources advised it has again encountered visual spodumene at the Mavis Lake lithium project.

Four holes were drilled, targeting fine to large spodumene laths hosted from the Pegmatite 6 Prospect.

As such, the most prominent result, Hole MF22-72 (Hole 13) represented the thickest and most mineralised zone.

The key highlight included 23.1 metres of visually high, up to 60%, white-silvery green, fine to medium spodumene laths. This hosted approximately 32% spodumene mineralisation throughout the drill hole.

Critical Resources noted that this intersection continues to illustrate the significance of the down-dip potential within the pegmatite 6 zone.

The other three drill holes intersected up to 27% of spodumene laths within a larger interval of the spodumene-bearing pegmatite.

Due to the success of the company's inaugural 5,000m drill program, exploration works on 28 new targets have been identified.

Work has commenced extending drilling to a roughly 10,000-metre program.

Samples and core from the above completed drill holes have been sent for analysis and are expected in due course.

Critical Resources managing director Alex Biggs commented:

Hole 13 represents the widest intersection we have seen so far in our drill campaign. The fact that this intersection is at depth, further along strike and importantly a step out hole is significant for the Project and very exciting.

The high-grade visual estimates are particularly intriguing and we're seeing the fundamentals of Mavis Lake improving all the time. Working towards a JORC compliant Resource remains the key focus of the Company. We look forward to updating the market on further results as we receive them.

About the Critical Resources share price

Since this time last year, the Critical Resources share price has accelerated by more than 480%.

The company's shares hit a 52-week high of 14 cents in January, before losing ground in the months after.

Based on today's price, Critical Resources commands a market capitalisation of roughly $119 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Scott Phillips.

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