The share price of S&P/ASX 200 Index (ASX: XJO) lithium producer Allkem Ltd (ASX: AKE) is rising after the company announced it has discovered a new high grade zone.
An additional swarm of spodumene-bearing pegmatite dykes have been uncovered at the James Bay Project, located in Canada.
Right now, Allkem shares are swapping hands for $12.03 apiece – 0.3% higher than the stock's previous close.
Meanwhile, the ASX 200 is currently down 0.74%.
Let's take a closer look at today's news from the ASX 200 lithium share.
ASX 200 lithium share gains on new high grade zone
The Allkem share price is moving upwards on the announcement of what managing director and CEO Martin Perez de Solay called "outstanding" drill results.
The company's winter drilling program uncovered the find, which is located directly northwest of known mineralisation at the project. It includes intercepts including:
- 125 metres at 1.7% lithium oxide from 68 metres in drill hole JBL-23-048
- 72 metres at 1.89% lithium oxide from 11 metres in drill hole JBL-23-024
Such results represent downhole thicknesses. True thicknesses are estimated to be 60% to 80% of downhole thicknesses.
Additionally, drilling in the eastern portion of the deposit confirmed both the continuity and lithium grade of spodumene-bearing pegmatite dykes.
Perez de Solay commented on the news driving the Allkem share price today, saying:
The significant grade and thickness of these drill results is outstanding and the addition of a new zone of mineralisation to the [northwest] of the current resource provides scope for potential additions to resources and reserves as we further drill out this area.
The company's winter drilling program, which concluded last month, saw 130 drill holes completed for a total of 29,164 metres. Around 6,700 assays from the program have been received, with a further 2,400 still to come.
Allkem plans to update James Bay's mineral resource estimate following the receipt of all assays. It's also preparing to undergo further work to better understand the new find.
The company has been busy increasing its tenement holdings in and around the James Bay project over the last six months. It has staked 29 new claims and acquired another 131 claims.
Allkem share price snapshot
The Allkem share price has been outperforming the ASX 200 for some time now.
The stock has risen 9% so far this year. It's also currently 1% higher than it was this time last year.
Meanwhile, the ASX 200 has lifted 4% year to date and has slumped 1% over the last 12 months.
