What world-leading news is driving shares in this junior ASX mining company higher today?

Aldoro Resources Ltd (ASX: ARN) has confirmed its Kameelburg project as the world’s largest strontium resource, sending its shares higher on Monday.

Resource grows even larger

The company said in a statement to the ASX that it had a “globally significant” rare earth element resource of 597.07 million tonnes at a grade of 2.49%, which was a 15% increase in tonnage from its previous resource update in September last year.

The new resource was based on 29 new diamond drill holes at the project.

Aldoro said there were four distinct revenue streams from the project, located in Namibia, namely rare earth oxides, niobium pentoxide, strontium carbonate, and potentially magnetite-hosted iron by-product.

Aldoro Chair Quinn Li said regarding the new resource:

This updated Resource represents another transformational step-change for the Kameelburg Project and further confirms the emergence of one of the world’s most significant multi-critical minerals systems. Not only has the total resource tonnage continued to grow at consistent grade, but the high-grade core has more than doubled in scale. Importantly, we have now formally declared a maiden strontium resource and by-product credit, positioning Kameelburg as the largest known strontium resource globally. This is a major milestone for Aldoro and further highlights the unique strategic value of the project.

Ms Li said there had been “outstanding” metallurgical leach recoveries for strontium and rare earths, and, “together with the magnetite-rich domains currently being assessed as a potential iron by-product stream, Kameelburg is rapidly evolving into a genuinely world-class, multi-product critical minerals project with the potential to become a long-life global supplier of strategic minerals”.

Aldoro said Namibia was widely recognised as one of the most mining-friendly jurisdictions in Africa, with a well-established development framework.

The company added:

The country hosts a portfolio of globally significant operating mines (including Rössing, Husab, Langer Heinrich and Skorpion) and is home to substantial investment from major international mining groups. The Namibian mining sector contributed N$7.8 billion in corporate tax in the most recent fiscal year, underscoring the sector’s importance to the national economy and the corresponding strength of government support for mining investment.

Infrastructure in place

Aldoro said the Kameelburg project was well-situated, needing no greenfields rail, road, port, or power grid investment to bring it into production.

The project has bitumen highway access, and a heavy haul rail freight line is just 2km from the proposed mine site.

A major power line is also just 7km distant.

Aldoro shares were 7.9% higher on the news on Monday at 47.5 cents.

The company is valued at $103.8 million.

The post What world-leading news is driving shares in this junior ASX mining company higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.