The Lithium Power share price has risen by more than 7% today after the company announced it is recommencing exploration activity.
The post Here’s why the Lithium Power (ASX:LPI) share price is up 7% today appeared first on The Motley Fool Australia. –
The Lithium Power International Ltd (ASX: LPI) share price is rising today as the company announced that it would be recommencing its exploration activities, leading to a gain of 7.55%. As a result, shares are currently trading at 28 cents, which is close to its highest price since the pandemic struck in March.
The company is engaged in the exploration and evaluation of early-stage lithium resources, primarily focusing on the identification and acquisition of lithium assets. With four projects across Chile, Australia, and Argentina, Lithium Power represents a true pure play lithium explorer.
Exploration activity recommences
The Lithium Power share price has risen today after the company announced it is recommencing exploration adjacent to the Greenbushes lithium mine.
The Greenbushes project is located in the south west of Western Australia. It is wholly owned by the lithium explorer and is located adjacent to the world’s highest grade spodumene lithium mine.
Covid-19 placed its exploration efforts on hold for most of 2020. However, with the recent improvements in lithium prices, which are forecast to increase during 2021, it has been deemed worthwhile to resume activity.
Moreover, Greenbushes consists of two tenements covering more than 398km, which both have approved work and environmental plans. The mine is at the centre of a 20km zone with lithium deposits found nearby, outlined in published studies. Other elements that lie in close proximity to the mine include arsenic, tin, boron, and beryllium. Notably, the presence of arsenic in the soil is positive as this is a significant indicator element.
What did management say?
In this morning’s announcement, CEO Cristobal Garcia-Huidobro welcomed the news, commenting:
With the increased market interest in lithium, we feel it is opportune to re-start our WA exploration activities. The recent move by IGO Limited to acquire a portion of the Greenbushes mine adjacent to our project reiterates the significant value of high-grade lithium pegmatites and the Greenbushes project in particular, in a secure global jurisdiction. We look forward to updating shareholders on our exploration activities as they advance to drilling.
The Lithium Power share price has been unchanged since last year, recovering well after its March lows. Nonetheless, shares in the company have been slimly outperformed by the All Ordinaries Index (ASX: XAO), which rose 1% in the same period.
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Motley Fool contributor Daniel Ewing 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.