The Vital Metals Limited (ASX: VML) share price is up 4% in early afternoon trade.
We look at the ASX resource share's latest rare earths drilling results below.
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What assay results did Vital Metals report?
Vital Metals shares are gaining after the company reported outstanding first-pass assay results at its 100% owned Nechalacho Rare Earth Project in Canada.
According to the release, the results from its Tardiff Zones 2 and 3 could significantly extend the project's mine life.
Of the 10 holes it drilled across Tardiff Zones 2 and 3, Vital said every one hit extensive mineralisation. Those included thick zones with total rare earth oxides (TREO) grades above 2%. The best results highlighted from Zone included:
- 1 metres at 3.03% TREO
- 0 metres at 2.05% TREO
Vital Metals plans additional drilling to fully define the Tardiff zones, which remain open in all directions.
Commenting on the results, Vital Metals managing director Geoff Atkins said:
Drilling results from Tardiff Zones 2 and 3 have shown the potential for Nechalacho to be a much larger rare earths operation than we anticipated. We completed the drilling at Tardiff as part of defining a Mine Plan for Stage 2 operations at Nechalacho, which will initially focus on Tardiff Zone 1.
But, with the results showing mineralisation in both Zone 2 and 3 remaining open, we will plan further drilling in these areas over the next year to get a better understanding of the mineralisation and determine if the three zones are connected.
The company reported it is commencing Stage 1 rare earth production at Nechalacho via ore sorting. It intends to mine its North T deposit in Stage 1 and focus on the Tardiff deposit in Stage 2, with plans to construct a large-scale rare earth mining and processing operation.
"With the commencement of production at Nechalacho, we are excited about the future of this project," Atkins said. He added that it has the potential to grow into "one of the world's best light rare earth projects".
Vital Metals share price snapshot
Over the past 12 months the Vital Metals share price is up an impressive 400%. By comparison the All Ordinaries Index (ASX: XAO) has gained 28% over that same time.
Year-to-date the Vital Metals share price is up 67%.
