Rare earth minerals explorer and mine developer Pensana Metals Ltd's (ASX: PM8) share price gained 1.6% today to close at $1.55 per share. This comes following the company's update this morning on exploration activities at its new Coola Project in Angola.
Today's 1.6% gains are roughly double the performance of the All Ordinaries Index (ASX: XAO), which closed up 0.8% for the day. But the Pensana Metal's share price has done far more than return double the index's gains in 2020.
Year-to-date the company's share price is up a staggering 761%. And those gains come despite shares falling by 48% from 24 February through to 24 March during the COVID-inspired market selloff.
In case you're wondering, if you'd picked up some shares on 24 February, today you'd be sitting on gains of 1,192%.
Image source: Getty Images
What did Pensana announce to keep its share price moving higher?
This morning Pensana announced that it had commenced initial field tests at its new Coola Project – 16 kilometres north of its advanced stage Longonjo Project.
The company is testing defined prospective targets for a range of heavy rare earths, light rare earths, scandium, niobium, tantalum, hafnium and fluorspar. (Don't worry, I had to look a few of those up myself!)
The European Commission has listed these commodities as critical. And Pensana believes Coola will complement the future production of magnet metal raw materials from Longonjo.
The first assay results from early reconnaissance work confirm rare earth mineralisation in rocks and soils top 2.99% rare earth oxides.
The company also reported locating outcropping fluorspar mineralisation, stating this is of direct interest as well as being a positive sign for the presence of additional technology metals.
What Pensana's Chief Operating Officer said
Commenting on the updated results, Dave Hammond, Pensana's Chief Operating Officer said:
The early reconnaissance sampling results are a great start in already confirming the Coola complex as a fertile mineralised system… Systematic sampling of the 6 kilometre by 2.5 kilometre complex has now been completed and samples despatched for assay.
Exploration programs are currently in progress over 2 other prospective alkaline-carbonatite geological systems together with stream sediment sampling and geological reconnaissance of key geophysical anomalies.
We look forward to reporting further results from this exciting new exploration region on Longonjo's doorstep.
With 2020's share price gains of 761% in mind, Hammond surely isn't the only one looking forward to the next set of results.
