The Piedmont Lithium Inc (ASX: PLL) share price is on the move on Wednesday.
In morning trade, the lithium developer's shares are up 5% to 99.5 cents.
This means the Piedmont Lithium share price is now up 29% since the start of the year.
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Why is the Piedmont Lithium share price charging higher?
Investors have been bidding the Piedmont Lithium share price higher today following the release of a positive announcement out of the lithium developer.
According to the release, the company's partner, Atlantic Lithium, has announced the completion of a mineral resource estimate update for the Ewoyaa Project in Cape Coast, Ghana.
That update reveals that Atlantic Lithium's new mineral resource estimate is a total of 30.1 million metric tonnes at 1.26% Li2O. This represents a sizeable 42% increase on its previous estimate.
This is good news for Piedmont Lithium, as it has the right to earn-in a 50% interest in Ewoyaa and all Atlantic Lithium's Ghanaian projects. This is on top of the 10% equity interest that the company holds in the lithium explorer.
Management commentary
Piedmont Lithium's chief operating officer Patrick Brindle was very pleased with the news. He said:
We're very pleased with the reported increase in mineral resources for the Ewoyaa Project, notably the increase in mineral resources in the indicated category.
The Ewoyaa Project is one of the best located spodumene projects in Africa, and its development is fundamental to our growth strategy as an important source of spodumene concentrate for our LHP-2 Project. We look forward to Atlantic Lithium's completion of a prefeasibility study for the Ewoyaa Project, which will both increase the level of engineering definition for the Project as well as provide important data needed to advance regulatory approvals for the Project.
