The Arizona Lithium Ltd (ASX: AZL) share price has been a strong performer on Thursday.
In afternoon trade, the lithium explorer's shares are up 4% to 8.8 cents.
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Why is the Arizona Lithium share price storming higher?
Investors have been bidding the Arizona Lithium share price higher on Thursday following the release of a drilling update from the company's Lordsburg Lithium Project in South West New Mexico.
According to the release, passive seismics and titan magnetotelluric electromagnetic surveys have successfully identified a north trending basin containing targets interpreted to represent potential lithium mineralised brines.
Three drill holes totalling 1,850m have now been planned to test these targets. Management will shortly make an application with the Las Cruces Bureau of Land Management (BLM) for drilling approval.
The company believes it has a first mover opportunity to explore a playa lake system for lithium that is similar in geology and geography to Clayton Valley, Nevada. This is the only current lithium producing region in the United States.
'Outstanding opportunity'
Arizona Lithium's Managing Director, Paul Lloyd, was pleased with the results. He commented:
The encouraging results from the recently completed geophysical surveys at the Lordsburg Lithium Brine Project in New Mexico identifying three priority drill hole locations, have provided the Company with an outstanding opportunity to progress another project concurrently with the sustainable development of the Big Sandy Lithium Project in Arizona.
The close proximity to renewable energy sources, direct access to the interstate highway system and sampled lithium mineralisation at surface, have identified this project to have the potential as a timely contributor to growing lithium supply requirements in the USA.
