The Core Lithium Ltd (ASX: CXO) share price has shot higher after the lithium business revealed a promising resource upgrade.
Core Lithium is an Australian hard-rock lithium mining company that owns and operates the Finniss Lithium Operation on the Cox Peninsula, south-west and 88km by sealed road from the Darwin Port in the Northern Territory.
Resource upgrade
The lithium company said that drilling has been completed as part of the ongoing Finniss lithium operation exploration program.
Results were recently received from 11 drillholes targeting extensions along “strike and down dip” to the existing BP33 orebody.
That drilling was to find out the continuity of grade and thickness of the minerals.
The company said that the BP33 mineralisation appears “open down plunge and along strike” and has the potential for increases to the BP33 mineral resource in future drilling programs.
The mineral resource estimate has more than doubled from 4.37 million tonnes at 1.53% Li2O1 to 10.1 mt at 1.48% Li2O2, according to the Core Lithium update.
BP33 is the second proposed mine at Finniss currently awaiting development approval.
Core Lithium said these drilling results reinforce the potential for extension of the BP33 mine design.
The ASX lithium share said that plans are in place to continue these exploration efforts in 2023 with a further expansion of the exploration program across the Finniss project area in 2023.
It said its objective is to identify and define additional mineral resources and ore reserves that lead to the development of mining options across the company’s Finniss tenements (areas of land where it’s looking for resources).
Core Lithium said that further significant growth opportunities exist beyond currently modelled resource domains at Carlton, Ah Hoy, Hang Gong and Sandras, and an update to the global mineral resource and ore reserve estimate is underway.
An aggressive drill program is planned at Finniss in the 2023 calendar year.
Final thoughts on the Core Lithium share price
Finding more lithium is a positive step. But, I think generating earnings is the most important step for the company now.
I understand why investors are excited, but I’m not sure what a good price to invest is, considering it’s still not making cash flow and the lithium price could decline. My preference is Pilbara Minerals Ltd (ASX: PLS) shares because that ASX lithium share is capitalising on the strong lithium prices today.
