ASX mining stock OD6 Metals Ltd (ASX: OD6) is storming ahead again today.
The rare earth explorer’s share price has risen 176% from 23 cents at market close on 9 November to the current share price of 63.5 cents.
So why is this ASX mining stock having such a good day?
Rare earth discovery
This ASX mining stock has been surging since it released “outstanding assay results” at the Splinter Rock Project in Western Australia.
OD6 Metals discovered widespread, thick, clay hosted rare earth element (REE) mineralisation at the project.
This includes grades of up to 6,729 parts per million (ppm) Total Rare Earth Oxides (TREO). Assay results have been returned for 65 drill holes out of a total program of 179 holes.
Today, the company updated the ASX with a corporate presentation. OD6 Metals said it has a “massive landholding” bigger than the ACT.
Describing the potential of its projects, OD6 Metals said:
Excellent concentrations of neodymium (Nd) and praseodymium (Pr), which are essential elements needed for the green economy.
OD6 Metals again highlighted the drilling results reported yesterday. OD6 Metals said the results showed: “outstanding TREO grades, over extensive thicknesses, close to surface, with excellent concentrations of magnetic rare earths”.
The company also noted there is currently an explosion in demand for critical rare earth minerals.
OD6 Metals joined the ASX in June 2022.
OD6 share price snapshot
This ASX mining stock has risen 218.5% in the year to date, while it has soared 243% in the last month.
For perspective, the ASX 200 has shed 4% in the past year.
OD6 Metals has a market capitalisation of more than $31 million based on the current share price.
The post Why has ASX mining stock OD6 Metals rocketed 176% in 2 days? 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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