The Hastings Technology Metals Ltd (ASX: HAS) share price is pushing higher during morning trade. This comes after the emerging rare earths producer announced an update on the Ore Reserves Estimate at its Yangibana Rare Earths Project.
At the time of writing, Hastings shares are up 2.70% to 19 cents. In comparison, the All Ordinaries Index(ASX: XAO) is up 0.3% to 7,696 points.
Hastings significantly increases Ore Reserve Estimate
In today's statement, Hastings advised that it has increased the Total Proven and Probable Ore Reserves at Yangibana. Successful exploration activities during last year have led the company to revise its estimate.
Hastings revealed that the total Ore Reserve has significantly increased to 16.7 million tonnes at 0.95% Total Rare Earths Oxide (TREO). This is a 37% improvement in the Ore Reserve tonnes compared with the previous Ore Reserve Estimate announced in 2019.
Most notably, the company stated that TREO tonnes rose 15% to 158,400 tonnes. This is exceptionally important as the ore contains Neodymium and Praseodymium (NdPr). These elements are both key components in the electric vehicle industry.
Hastings targeted 5 of the 10 deposits at Yangibana during its 2020 exploration program. Extensive drilling comprised of 341 reverse circulation (RC) holes for a total depth of 23,739 meters. In addition, 46 diamond holes totalled more than 1,605 meters.
Diamond drilling is a more efficient way for precise sampling and analysis, whereas RC drilling is used for extracting bulk samples. When it comes to speed, RC drilling is the faster method, however, diamond drilling is employed when seeking accurate results.
Based on the findings, Hastings extended the mine life to a minimum of 15 years. Ore sorting technology is expected to be sourced in Yangibana's mine development for processing the ore.
In addition, the company is aiming to secure debt financing to begin construction activities in the second-half of 2021.
What did management say?
Hastings executive chair, Charles Lew commented:
I am delighted to announce this significant increase in the Ore Reserve at Yangibana, which is the result of our successful exploration programs across existing and new deposits last year and will allow us to plan for a mine operating life of at least 15 years.
Importantly, there remains substantial mineral resource upside potential at Yangibana, which we will further assess in due course.
Hastings share price snapshot
Over the last 12 months, the Hastings share price has posted a gain of around 50%, with year-to-date up 10%.
Hastings presides a market capitalisation of roughly $330 million, with approximately 1.7 billion shares on its books.
