Guess which ASX mining share is rocketing 16% on a new rare earths discovery

A woman is excited as she reads the latest rumour on her phone.A woman is excited as she reads the latest rumour on her phone.

The S&P/ASX 200 Materials Index (ASX: XMJ) is rising 1.47% today, but one ASX mining share is storming much higher.

The Dreadnought Resources Ltd (ASX: DRE) share price is soaring 15.79% at the time of writing and is currently trading at 6.6 cents.

So what are the details of this company’s new discovery?

ASX mining share makes high-grade rare earth discovery

Dreadnought today released assay results from the first drill line at the Yin rare earth ironstone, located at the company’s Mangaroon project in Western Australia.

Laboratory assays confirmed thick, high-grade rare earth mineralisation at the project.

Results show up to 16% total rare earth oxides (TREO) with an average NdPr (neodymium and praseodymium) ratio of 30%. Dreadnought said this is nearly double the global average.

Infill drilling at the site is taking place now and an initial JORC Resource will be released in the December quarter.

Commenting on the results fuelling this ASX mining share today, managing director Dean Tuck said:

Drilling at Yin continues to exceed expectations. With a second rig mobilising to site this month, we are confident that Yin will produce a substantial initial JORC Resource by the end of 2022.

Tuck said once drilling is complete, the rigs will proceed to the Y3 ironstone and C1-C5 carbonatites. He added: “We are seeing genuine scale here with runs already on the board and 66 further anomalies to be assessed by September 2022.”

Dreadnought share price recap

The Dreadnought share price has soared 61% in the year to date and 65% in the past month.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen nearly 9% year to date and 4% in the last month.

This ASX mining share has a market capitalisation of nearly $185 million based on the current share price.

The post Guess which ASX mining share is rocketing 16% on a new rare earths discovery appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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