The Core Lithium Ltd [ASX:CXO] share price is trading slightly down today despite lithium exploration drilling recommencing.
At the time of writing, Core Lithium’s shares were down 1%.
Zooming out further, CXO shares have dipped 13% this month. However, the lithium explorer is up a mammoth 450% over the last 12 months, reflecting the strong interest in the ASX lithium sector.Source: Tradingview.com
CXO’s lithium exploration drilling recommences
Core Lithium today notified the market that drilling has restarted at its 100% owned Finniss project in Darwin.
Managing Director Stephen Biggins described the recommenced work as the ‘most extensive exploration and drilling campaign we have ever conducted at our flagship asset.’
Diamond core drilling started this week and will be followed by an RC rig and RAB rig later in May.
The resource expansion drilling aims to convert ‘a high proportion’ of newly acquired prospective ground at Finniss.
CXO also reported that it resumed gold exploration at its Bynoe Gold project.
Biggins was excited by fieldwork restarting at Finniss:
‘We are confident that, through this program, we will be able to significantly upscale the lithium resources and mine life at Finniss, making Australia’s next lithium mine an even more attractive investment opportunity.’
CXO Share Price ASX outlook
The resumed lithium exploration program at Finniss is expected to bring ‘lithium rich pegmatites into spodumene resources in coming months.’
The vague nature of the timeline could partly explain the market’s muted reaction to today’s update.
Additionally, the recommencement of lithium exploration may have already been anticipated by the market following CXO’s 20 May update.
Last month, Core Lithium established a new lithium exploration target at Finniss of 9.8 to 16.2 million tonnes at a grade of between 0.8 to 1.4% lithium oxide.
That ASX update flagged that resource expansion drilling would start ‘in the coming weeks.’
So today’s news may have represented nothing investors didn’t already expect, explaining why CXO shares are trading sideways today.
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