It certainly has been a great time to be a shareholder of Latin Resources Ltd (ASX: LRS).
Since this time last month, the ASX lithium stock has risen by almost 30%.
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Why is this ASX lithium stock on fire?
There are a number of reasons why this ASX lithium stock is on fire at the moment. Some are company specific, whereas others are industry related.
Let's start with what Latin Resources has been doing and saying. Earlier this month, the company released an update on its flagship Salinas Lithium Project in the pro-mining district of Minas Gerais, Brazil.
Management revealed that its fully funded drilling campaign is now operating at full capacity, with eight diamond drilling rigs on site. This includes seven man-portable rigs and one track-mounted rig.
Pleasingly, drill production is at the budgeted rate and the company is well positioned to complete all of the planned in-fill and extension drilling on time. In addition, the intercepts so far have been very positive.
All in all, this means that Latin Resources is on target to release its all-important mineral resource estimate (MRE) update in June.
Latin Resources' vice president of its Americas Operations, Tony Greenaway, commented:
We are very impressed with the consistent thick high-grade intercepts at Colina. These new results bode very well for our resource upgrade in June. We now have our full contingent of eight drilling rigs operating on site at Colina, including are larger track mounted machine.
What else?
Also giving this ASX lithium stock a boost has been recent highly positive industry news.
This includes lithium prices starting to rebound from recent lows and increased merger and acquisitions (M&A) activity.
The latter has seen Allkem Ltd (ASX: AKE) announce a merger with Livent Corp (NYSE: LTHM) and Liontown Resources Ltd (ASX: LTR) reject a takeover approach from Albemarle (NYSE: ALB).
This appears to be sparking hopes that other deals could be made in the near future. Perhaps even one for this ASX lithium stock.
