Why did the Sayona Mining share price just leap 5%?

The Sayona Mining share price is smashing the benchmark today. But why?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Sayona Mining Ltd (ASX: SYA) share price is charging higher today.

Shares in the S&P/ASX 300 Index (ASX: XKO) lithium stock closed yesterday at 4.2 cents. In late morning trade on Thursday, shares are swapping hands for 4.4 cents apiece, up 4.8%.

For some context, the ASX 300 is down 1.0% at this same time.

Here's what's spurring investor interest today.

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.

Image source: Getty Images

What's boosting the ASX lithium share?

The Sayona Mining share price is smashing the benchmark today after the miner reported it has kicked off reverse circulation (RC) drilling at its Tabba Tabba Lithium Project, located in Western Australia.

Sayona is exploring a region where air core drilling previously identified high-potential pegmatite systems. RC drilling will enable the miner to drill significantly deeper.

The initial campaign comprises more than 2,000 metres of RC drilling across 14 holes. Sayona plans to conduct additional drilling throughout 2024 as it gains more geological information across the prospective area.

On the funding front, Sayona Mining could be getting a boost after the lithium miner reported it had secured a $180,000 co-funding grant from the WA Government's Exploration Incentive Scheme (EIS).

Sayona said the government grant will help finance innovative exploration drilling in the search for flat lying spodumene pegmatite systems within the Tabba Tabba lease.

According to the ASX lithium stock:

Flat lying pegmatite systems often have limited surface expression and require a systematic exploration approach to best focus drilling into the most prospective target areas.

Sayona is advancing this process, being guided by gravity data, mapping, rock and soil sampling and drill information.

What did management say?

Commenting on the drill campaign sending the Sayona Mining share price sharply higher today, CEO James Brown said:

We are excited to have commenced RC drilling over the highly prospective Tabba Tabba lease which has known lithium mineralisation in close proximity and along strike.

Previous soil sampling and air core drilling identified areas of anomalous geochemistry that have been confirmed to also contain gravity features of significance. We now intend to test these targets with RC and possibly diamond drilling as supported by results.

We are highly committed to our wholly owned Western Australian lithium assets and intend to continue an active exploration program over the 2024 field season.

Sayona Mining share price snapshot

While today's gains will be most welcomed by shareholders, the Sayona Mining share price is still down a precipitous 80% from this time last year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man sitting at his dining table looks at his laptop and ponders the share price.
Materials Shares

ASX lithium shares 'compelling' as top broker adjusts ratings

UBS predicts the global oil shock caused by the war in Iran will drive higher demand for electric vehicles.

Read more »

Three workers jump in the air at a steel factory.
Materials Shares

This ASX steel stock is unlocking hidden value. So why is it falling today?

BlueScope shares fall after an update on surplus land developments.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Guess which ASX mining stock is crashing 24% today

The miner is raising capital for the fourth time in as many years.

Read more »

A man wearing a suit and holding an EV charger gives the thumbs up.
Materials Shares

3 reasons to buy this high flying ASX lithium stock for the long term

World-class assets, strong balance sheet, and smart growth support long-term outlook.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Is this ASX iron ore stock a better buy than Fortescue?

Bell Potter thinks this stock could rise 90%.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Are Liontown shares a buy, hold, or sell?

Ord Minnett has given its verdict on this lithium miner.

Read more »

two business people shake hands through the glass wall of a business office with a board table and laptop computer in view between them.
Materials Shares

A major long-term deal is lifting this ASX stock today

Nufarm shares are edging higher after locking in a long-term biofuels deal.

Read more »

Miner holding a silver nugget.
Materials Shares

Why are these ASX silver stocks racing higher today?

A 4% silver rise sparked double-digit gains in silver shares.

Read more »