Up 62%, what’s pushing MetalsGrove (ASX:MGA) share price today?

Highlights:

• MetalsGrove has shared that surface field mapping program has been completed at Upper Coondina Lithium project.
• The company has identified significant lithium pegmatite potential.
• The maiden drill program is expected to commence in fourth quarter.

Shares of critical materials explorer, MetalsGrove Mining Ltd (ASX:MGA) are marking significant gains on ASX today (27 September 2022). At 11:22 AM AEST, the shares were trading 61.90% higher at AU$0.17 apiece, with a market capitalisation of AU$5.53 million.

With this, the share price of the recently listed ASX materials company has surged by 21.43% since the day of listing (6 July 2022).

Why are MetalsGrove's shares on the rise today?

Via an ASX announcement, MetalsGrove shared that the pre-drilling detailed surface mapping program has been finalised at the Upper Coondina Lithium Project of the company. Initial results indicate multiple outcropping pegmatite dykes taking place in swarms, varying from 3m to 30m.

The completed program was designed to locate potential extensions of existing mineralisation for the approaching drilling program. Also, the program covered only the southern half of the project, and the remaining part is expected to be mapped in the coming months.

MetalsGrove said that 45 dominating pegmatite formations have been located. Reportedly, pegmatite dykes strike around the northeast-southwest within a regional corridor extending 8km.

What's next?

To examine the southern part of the Upper Coondina Lithium project, the company has proposed a program of around 77 RC holes. To prioritise the areas of Upper Coondina, MetalsGrove said that geochemistry helps.

As per ASX announcement, more than 2,500 soil samples were collected from the southern part of the project. The assay results for the LCT-pegmatite field are currently waiting. LCT-pegmatite field is a 3km by 8km zone with multiple mapped pegmatite emplacements.

MetalsGrove informed that the recently completed radiometric and airborne magnetic survey would potentially allow recognition of new drilling targets and help create a strategy for the next drilling programme. Interpretation and data processing of airborne survey data is underway.

Management Commentary

Sean Sivasamy, managing director, MetalsGrove, commented on the development:

About MetalsGrove

MetalsGrove is an exploration and development company with a focus on its portfolio of rare earth, high-quality lithium, manganese, copper-gold and base metal projects in the Northern Territory and Western Australia.

The company claims that it is committed to green development and exploration to meet the demand growth in the renewable energy and battery storage markets in the transition to a de-carbonised world.