The Vital Metals Limited (ASX: VML) share price was going gangbusters this morning, flying more than 9% higher in intraday trade.
At the time of writing, the Vital metals share price has lost some of that ground and is trading at 5.4 cents, up 3.85%. Even at this lower price, shares in the mineral exploration company have surged more than 17% in the last 3 trading sessions.
Let's take a look at what appears to be fuelling the Vital Metals share price in July.
What's happening with Vital Metals?
The Vital Metals share price received a boost yesterday after the company provided an update on activities at its Nechalacho project in Canada.
According to the announcement, the company has started rare earth production starting with ore crushing.
Vital Metals noted that its mining contractor Nahanni Construction Ltd completed the first blast of ore at Nechalacho's North T Zone on 28 June. The company then started production, with first ore crushed at Nechalacho on 30 June 2021.
Vital Metals managing director Geoff Atkins noted that the company's crews worked hard on-site through June to accelerate mining activities. In addition, management said that crushing and ore sorting equipment had been installed and was ready to start commissioning.
Vital Metals aims to ramp up crushing and ore sorting at Nachalacho, with full production rates expected to be achieved this month.
Snapshot of the Vital Metals share price
Vital Metals is a mining explorer and developer focusing on rare earths, technology metals and gold projects. The company's flagship projects include the Nechalacho Rare Earth Project in Canada and Wigu Hill project in Tanzania.
The Vital Metals share price has had a tumultuous year thus far.
Shares in the company started the year at around 3 cents and bolted to a high of 9 cents in mid-March. Since then, the Vital Metals share price has waned, but still remains more than 70% higher for the year.
