The Pensana (ASX:PM8) share price shot up 14% higher today. Here’s why

The Pensana share price is rocketing higher in morning trade. Here’s why investors are buying shares in the rare earths explorer today.

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The Pensana Rare Earths PLC (ASX: PM8) share price is soaring this morning, up 11.2% at $1.34 after shooting up 14% in early trade.

This follows the company reporting positive results from its rare earths Coola Project in Angola.

What’s sending the Pensana share price flying?

In today’s ASX announcement, Pensana reported that soils from its first sampling programs at its Coola Project contained high grade rare earths. The 7,500sq km project is located just 16km north of the company’s flagship Longonjo Project.

Pensana’s assay results from soil sampling over the Coola carbonatite identified a high tenor soil anomaly up to 4.7% rare earth elements (REO), which extend over a 1.3km by 1.4km area.

Further assay results from additional soil sampling are expected shortly. The company intends to drill test the defined targets in 2021.

Commenting on the results, Pensana COO Dave Hammond said:

These high grade rare earth assays are a great start, from what is only the first of several exploration targets for critical technology metals identified within the new Coola Project.

Results confirm a rare earth mineralised carbonatite at Coola that is now sufficiently well-defined for drill testings. Drilling will also determine if rare earth mineralised carbonatite lies beneath the soil cover in the central part of the 1-kilometre diameter volcanic pipe.

Pensana also revealed that it has appointed economic geologist Grant Haywood as the exploration manager.

“It is great to have Grant join us and lead the team going forward with his extensive experience in the evaluation of rare earth deposits and a whole range of other commodities,” Hammond said.

Addressing the company’s flagship project, he added, “The drilling program at Longonjo was efficiently and successfully executed under Grant’s supervision and 100 tonnes of the mineralisation is now on its way to Perth.”

Pensana share price and company snapshot

Pensana Rare Earths is an active Angolan-focused mineral exploration and development company. Its projects include the Longonjo and Coola sites.

2020 has proven a stellar year for Pensana shareholders. At least those that held their nerve earlier this year, when the Pensana share price crashed 68% from 5 March through to 23 March.

Despite that crash, share are up 661% year-to-date, compared to 2% gain on the broader All Ordinaries Index (ASX: XAO).

As for the Pensana share price gains since 23 March? Up 1,270%.

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