The Sayona Mining Ltd (ASX: SYA) share price is rebounding on Thursday.
In morning trade, the lithium miner's shares are up 1.5% to 7.3 cents.
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Why is the Sayona Mining share price rising?
Investors have been buying the company's shares today after responding positively to a drilling update.
According to the release, Sayona Mining has identified multiple, high-grade lithium intercepts from recent drilling at its 75% owned North American Lithium (NAL) operation in Quebec, Canada.
Importantly, this includes new mineralised zones outside the current definitive feasibility study (DFS) pit shell.
Management believes the results from the 57 new drillholes totalling 14,350 metres have significantly increased the potential for a resource upgrade at the current single largest source of hard rock lithium production in North America.
But it won't be stopping there. There are still assay results pending for an additional 152 holes covering 43,500 metres.
'Hugely significant'
Sayona's Interim CEO, James Brown, was very pleased with the results. He commented:
These results are hugely significant for NAL, showing the potential for a resource upgrade at North America's single largest source of hard rock lithium production. Notably, some of the intercepts from this recent drilling program are thicker and higher grade than any previously encountered, increasing confidence in NAL's mine life.
We look forward to seeing the results from the remaining assays as we work to expand the NAL resource, further highlighting the importance of this operation for not only the joint venture partners but for the Abitibi-Témiscamingue region as a key source of high-grade lithium for the battery and EV revolution.
