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Summary
- Vulcan Energy Resources (ASX:VUL) opens gap up on ASX, continuing the upside momentum as investors lap up the shares, pushing it to an all-time high of $2.00.
- On 12 November 2020, the Company had disclosed its updated JORC classified resources for the Taro project.
- Taro resource upgrade and recent business events unfold.
Vulcan Energy Resources (ASX:VUL), the ASX-listed emerging zero-carbon lithium producer, opened gap up at the opening session on 16 November 2020, reaching a fresh all-time high.
VUL shares were up ~ 5.09 per cent against its previous close on ASX ahead of the trading halt, maintaining its strong upside momentum and trend while hitting an all-time high of $2.00 (as on 16 November 2020 1:33 PM AEDT).
Taro Resources grows stronger
Post acquiring and analysing the seismic and well data, VUL updated and reclassified its Indicated JORC Resource Estimation for the Taro project of 0.83 million tonnes of contained lithium carbonate equivalent at an average grade of 181 mg/l Li.
The Company upgraded the previously estimated Inferred Resource by ~ 73.49 per cent to 1.44 million tonnes of contained lithium carbonate equivalent at an average grade of 181 mg/l Li.
- Furthermore, VUL upgraded its Upper Rhine Valley Project (URVP) Li-brine resource as well, which as per the revised estimates collectively contains 16.19 million tonnes of lithium carbonate equivalent at an average grade of 181 mg/l Li.
- The updated resources at URVP is mainly classified by the Company into Indicated and Inferred Category, in which, ~ 90 per cent is estimated to belong to the Inferred Category, representing the largest JORC classified lithium resource in Europe.
A large resource at URVP gives the Company the potential to become a major supplier of lithium chemicals into the European market while further strengthening its aim to use the project to produce the lowest CO2-eq. footprint, lithium hydroxide for electric vehicles in the world.
Furthermore, VUL has now integrated the Indicated Resource portion of Taro in the Pre-Feasibility Study (PFS) of the project.
The Price Behaviour
The market seems to be baking in the positive news on the updated resource estimates. Also, the recent development on the business front is keeping the stock hot on ASX.
Recently, VUL appointed Ex-Tesla director Jochen Rudat to the Business Development team.
To Know More, Do read: Vulcan Energy Gains Momentum on ASX With the Appointment of Ex-Tesla Senior Management
VUL Daily Chart (Source: EODHD/Others Eikon Thomson Reuters)
From the daily chart, it could be seen that the stock has been in a continued uptrend for quite some time, and now, has given a volatility breakout with the price breaching the +2 Standard Deviation of the 20-day simple Bollinger Band®.
The stock is currently trading above the 200-day and 50-day exponential moving averages, reflecting the prevailing bullish sentiment. Furthermore, the On Balance Volume (OBV) is currently moving in tandem with the price, reflecting that the price gain is well supported by large participation.
VUL Hourly Chart (Source: EODHD/Others Eikon Thomson Reuters)
Ahead of the trading halt on ASX, the stock continued its momentum, testing the +2 Standard Deviation of the 20-period Bollinger Band®. The future price action would be closely watched by the traders as it could define the strength of the trend going forward.
