The Auroch Minerals Ltd (ASX: AOU) share price is having a sensational day.
In morning trade, the lithium exploration company's shares are up 31% to 6.8 cents.
Image source: Getty Images
Why is this lithium share racing higher?
Investors have been scrambling to buy this lithium share today after the company released an update on recent drilling activities.
According to the release, Auroch has discovered high grade lithium mineralisation in reverse circulation (RC) drill-hole samples at the Nepean Nickel Project in Western Australia. Auroch owns 80% of this project, with Lodestar Minerals Ltd (ASX: LSR) owning the balance.
What happened?
The release notes that drilling at the Nepean North Prospect was completed in the third quarter and consisted of two reverse RC holes for 539m to test an IP anomaly for nickel sulphide mineralisation.
All geologically logged pegmatites intercepted by the two RC holes were submitted for re-assay for lithium, caesium and tantalum (LCT) mineralisation as part of the company's ongoing investigation into the project's lithium potential.
Pleasingly, high grade lithium results in one hole, combined with re-logging of the 6m pegmatite interval, confirmed the presence of the lithium pyroxene mineral spodumene (the principal lithium ore mineral).
Significantly, the two holes were drilled approximately 150m apart, approximately 420m north of the previously reported lithium result. Management believes this suggests potential LCT-enriched pegmatites over a significant strike length at the Nepean North Prospect.
Auroch will immediately commence a high priority exploration programme to potentially delineate further high grade spodumene mineralisation.
Auroch's executive chairman, Mike Edwards, commented:
The discovery of high grade lithium within spodumene at Nepean is a great addition to our strategy as a battery metals focussed resource company. This nicely compliments our efforts at the Nevada Lithium Project and it will be extremely exciting to see these new lithium exploration programmes running in parallel at our WA and US projects early in the new year!
