Essential Metals (ASX:ESS) share price tumbles 20% on lithium update

Essential Metals is having a bad day on the ASX. Here’s why.
The post Essential Metals (ASX:ESS) share price tumbles 20% on lithium update appeared first on The Motley Fool Australia. –

The Essential Metals Ltd (ASX: ESS) share price is plummeting on news of its recent drilling campaign.

The company has announced its Dome North drill program doesn’t appear to have found any lithium-mineralised pegmatite.

At the time of writing, the Essential Metals share price is 17.5 cents, 20.45% lower than its previous closing price.

Let’s take a closer look at today’s announcement from the exploration and mining company.

Essential Metals’ worrying announcement

The Essential Metals share price is plunging on news of the company’s Pioneer Dome Lithium Project.

The update was filled with optimism about the project’s future development but the market’s sentiment might be lingering on its lack of spodumene.

Essential Metals noted, “geological logging of the drill chips does not indicate the presence of visual spodumene”.

However, the company doesn’t expect to receive assay results from its Dome North drill program until early-to-mid-October.

While the findings have seemingly disappointed the market, the company said they’re important for future targeting of pegmatites in and around the underexplored Dome North Resource.

Further, Essential Metals is planning a new phase of drilling for the final quarter of 2021 in hopes of upgrading the project’s Cade and Davy deposits. Currently, the deposits are ‘inferred’ and the company wants to boost them to ‘indicated’.

Though, the company noted that diamond drill rigs are hard to come by right now. It’s doing what it can to secure the needed drill rigs.

It is also undertaking studies needed to receive regulatory approvals and advance the project’s technical and financial studies.

These include scoping studies, surveys of flora and fauna and groundwater sources, and preparations for a mining lease application.

Essential Metals expects the studies will be finished by December and a mining lease will be granted in 6 to 12 months.

Essential Metals share price snapshot

Despite today’s notable dip, the Essential Metals share price has been performing well on the ASX lately.

It is currently 118% higher than it was at the start of 2021. It has also gained 25% since this time last year.

The post Essential Metals (ASX:ESS) share price tumbles 20% on lithium update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Essential Metals right now?

Before you consider Essential Metals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Essential Metals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Mach7 (ASX:M7T) share price is roaring 6% higher today
Why is the Eastern Iron (ASX:EFE) share price halted?
Tesserent share price slumps 6% following capital raise

Why the Great Boulder (ASX:GBR) share price is plunging 15% today
ASX 200 (ASX:XJO) midday update: Beach shares jump, a2 Milk rises

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!