Why the Dateline Resources (ASX:DTR) share price is rocketing 150% higher

Here's why this ASX resources share is rocketing higher…

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The Dateline Resources Ltd (ASX: DTR) share price has been an exceptionally strong performer on Thursday.

In morning trade, the mineral exploration company's shares rocketed as much as 150% higher to a multi-year high of 20.5 cents.

The Dateline Resources share price has since pulled back a touch but remains 71% higher at 14 cents at the time of writing.

Why is the Dateline Resources share price is rocketing higher?

Investors have been bidding the Dateline Resources share price higher following the release of an update on its Colosseum Gold Mine in California, United States.

According to the release, the company has completed a review of US Geological Service (USGS) data in conjunction with the acquisition of the Colosseum Gold Mine.

However, rather than finding gold, the data review highlights coincident potassium and thorium radiometric anomalies on the southern end of the Colosseum mining claims. These anomalies cover an area of ~800m x 500m.

The company notes that the anomalies are of particular interest to the company given their close proximity to the Mountain Pass Rare Earth Mine, which has a similar potassium and thorium anomaly as the Colosseum.

Mountain Pass, which is owned by US$6 billion MP Materials Corp, is the only US producer of light and heavy rare earth elements that are used predominantly in EV batteries and high temperature electric motors.

Dateline Resources' Managing Director, Stephen Baghdadi, commented: "Our focus is primarily on the gold potential at the Colosseum, however the USGS data provides a compelling case to incorporate rare earth element exploration into the upcoming field program at Colosseum."

"Fieldwork is required to determine the significance of this thorium and potassium radiometric anomaly. We are along strike ~8km to the north of Mountain Pass Rare Earth mine and have similar geology and radiometric signatures which is very encouraging," he added.

Following today's gain, the Dateline Resources share price is now up 180% since the start of the year.

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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