Drilling reveals 173% extra lithium resource for Allkem

The news: Drilling at Allkem's Canadian James Bay project has revealed increased mineral resources. The company has upgraded its lithium oxide estimate by 173%.

The numbers: An updated resource of 110.2 million tonnes included 54.3 million tonnes indicated and a further 55.9 million tonnes inferred. AKE shares jumped more than 3% from yesterday's close to over $15 in early trading.

The context: Allkem is set to merge with US-based Livent to create the world's third-largest lithium mining company, which will list in New York. Allkem posted record production in July and will release its full-year results on August 18.