The S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 1.90% today, but one ASX lithium share is soaring far higher.
The Koba Resources Ltd (ASX: KOB) share price is exploding 136% today to 26 cents.
Let's take a look at why this ASX lithium share is doing so well today.
Image source: Getty Images
What's going on?
Koba Resources advised the market it has staked mining claims covering 145km2 at the company's new Whitlock Lithium Project. This means Koba has the right to extract lithium from this area of land.
The site, located in southern Manitoba Canada, is a "high quality lithium pegmatite project", Koba said.
The project is located immediately on strike from the Tanco mine, which has lithium reserves of 7.3 Mt at 2.76% lithium oxide. Also nearby, are lithium resources including 10.2 Mt at 1.4% Li2O2, 3.6Mt at 1.28% Li2O3 and 1.1Mt at 1.51% Li2O4.
Koba said extensive pegmatites have been mapped at the Whitlock project. Field work will start at the project in future days.
Commenting on the news, managing director and CEO Ben Vallerine said:
We are excited to have staked the Whitlock Lithium Project adjacent to the world-class Tanco Lithium-Caesium-Tantalum pegmatite mine – Canada's only operating lithium mine.
The addition of a lithium project to our portfolio of high-grade cobalt assets is a logical progression as we continue to focus on battery metals to support the EV revolution and the electrification of the global economy.
Koba is also exploring cobalt in the United States.
Koba share price snapshot
The Koba share price has lifted 30% year to date, while it has soared 100% in the past month.
Koba listed on the ASX in May.
Koba has a market capitalisation of about $16.9 million based on the current share price.
