The Pilbara Minerals Ltd (ASX: PLS) share price is up around 5% after providing a mineral resources update for Pilgangoora.
Pilbara Minerals is one of the largest lithium miners in the world.
Pilbara Minerals share price rises on Pilgangoora update
The ASX lithium share announced a substantial increase in the mineral resource of its Pilgangoora operations in Western Australia’s Pilbara region, which reinforces its position as one of the world’s largest hard-rock lithium operations.
The update led to a 10% increase in total mineral resources tonnage and a 23% increase in contained lithium oxide compared to the 30 June 2024 mineral resource. It now contains 5.7mt of lithium oxide at an increased grade of 1.28% Li2O.
This incorporates all of the results from the 2024 financial year and FY25 drilling campaign, comprising 364 holes targeting down-dip extensions over a continuous strike length of over 7km.
Pilbara Minerals said that significant exploration potential remains at its Pilgangoora operation, with mineralisation remaining open “along strike” including at the Bridge Zone” between the Central Area and North Area that remains untested below 200m depth.
However, Pilgangoora operation exploration activities moderated from the end of March 2025 as part of the ASX lithium share’s wider cost reduction initiatives.
Management comments
Pilbara Minerals’ Managing Director and CEO, Dale Henderson, said:
The significant uplift in the Mineral Resource reaffirms our 100% owned Pilgangoora Operation as one of the world’s largest and highest-quality hard rock lithium assets. This outcome is aligned with our strategy to optimise the operating base and unlock the full potential of this world-class asset, driving long-term value for our shareholders.
The upgrade further consolidates PLS’ position as a leading global lithium supplier. It reflects the fundamental strengths of our business – large-scale, high-quality assets, disciplined operations, a diversified supply chain, and a strong balance sheet. These strengths provide the resilience to navigate current market conditions, while preserving the flexibility to scale as the lithium market transitions to its next phase.
Final thoughts on the Pilbara Minerals share price
The ASX lithium share has clearly excited investors by revealing there’s more lithium within its deposit.
The company’s share price is still lower than where it was a month ago, so I wouldn’t call it a wonderful buy. But, if the lithium price does improve, then it could be a contrarian buy today. Time will tell what happens next.
But, there are other ASX growth shares that could deliver strong performance, in my opinion.
