Latin Resources shares surge in advance of imminent drilling results
Latin Resources (ASX:LRS) has indicated there may be near-term share price catalysts as the company progresses 3000 metres of drilling over the next three weeks at its Ancasti lithium project in Catamarca, Argentina.
First assay results are expected to be released this month. The group is targeting four of the nine prospects that it controls in the Catamarca region as it tests the depth continuity and lithium content of the pegmatites that are exposed at surface both within old open pits and along strike extensions from the pit exposures.
Management highlighted that 29 rock chip samples had been collected from seven prospects and that these confirmed economic grades of lithium are contained within the drill target prospects with 19 of the 29 samples being 1% lithium dioxide or higher with the average grade of all samples being 1.42% lithium dioxide.
The fact that the pegmatites contained anomalous values of tantalum and niobium could enhance project economics.
Shares in LRS traded as high as 1.8 cents after news was released that potentially market moving drill results were imminent. This spike occurred under relatively strong volumes and represented an increase of 12.5% compared with the previous day’s closing price.
Of course share trading patterns should not be used as the basis for an investment as they may not be replicated. Those considering this early stage stock should seek independent financial advice.