The S&P/ASX 200 Materials Index (ASX: XMJ) is rising 1.29% today, but this ASX mining stock is charging far higher.

The Caspin Resources Ltd (ASX: CPN) share price gained 61% to hit an intraday high of 47.5 cents. It’s currently settled at 37.5 cents a share, up 27.1%.

Let’s take a look at what this ASX mining stock has discovered.

What’s going on?

Caspin advised the market today it has made a “ground breaking” rare earths discovery at the Mount Squires Project in Western Australia.

The company observed significant rare earth element mineralisation at the project, located in the West Musgrave region of the state.

Assay results showed:

• 46m at 0.71% TREO (total rare earth oxides) from 32m including 1.25% TREO from 48 metres at hole MSAC0141
• 19m at 0.41% TREO from surface including 4m at 0.80% TREO from 8m at drill hole MSAC0224
• 7m at 0.32% TREO from surface including 2m at 0.57% TREO from 5m to EOH at drill hole MSAC0130
• 10m at 0.14% TREO from 36m at drill hole MSAC0139

The company noted a high proportion of heavy (dysprosium and terbium) and light rare earth elements (neodymium and praseodymium).

This may be the first discovery of “significant rare earth element” mineralisation in the West Musgrave region, according to Caspin.

Commenting on the news, CEO Greg Miles said:

This is a sensational discovery given the tiny scale of the assay program. The Company has long recognised the conceptual potential for rare earth mineralisation at the Mount Squires Project, but given the more obvious prospectivity for nickel, copper and gold this potential had not been investigated until now.

We’ve now made a significant rare earth discovery, of a relatively unique style in Australia, in a province with no previous systematic exploration for rare earths

The company has so far assayed 37 samples from four holes and there are further results pending. The next drill program will test extensions and enable the company to gather samples for metallurgical test work.

Share price snapshot

Today’s news is a welcome boost. The Caspin Resources share price has shed 49% in the last year.

This ASX mining stock has a market capitalisation of about $34.9 million based on the latest share price.

The post Guess which ASX mining stock is rocketing 27% on a ‘ground breaking rare earth 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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