The Eclipse Metals Ltd (ASX: EPM) share price has been an exceptionally strong performer over the last month.
Since this time in August, the rare earths explorer's shares have rocketed a whopping 120% higher.
This means the Eclipse Metals share price is now up 340% since the start of the year.
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Why is the Eclipse Metals share price rocketing higher?
Investors have been bidding the Eclipse Metals share price higher in recent weeks following the release of a positive announcement in the middle of August.
That announcement revealed that the ongoing examination of historical diamond drill cores from an area near to the Ivittuut Greenland Project has been very promising.
The company advised that it has identified the potential for untapped rare earth, high grade quartz, cryolite, siderite, sphalerite and carbonate material.
What is the Ivittuut Greenland Project?
The Ivittuut Greenland Project is located in southwestern Greenland. It has a power station and fuel supplies to servicing it and local traffic to support mineral exploration. About 5.5km to the northeast of Ivittuut, the twin settlements of Kangilinnguit and Gronnedal, respectively provide a heliport and an active wharf with infrastructure.
The Gronnedal-lka carbonatite complex, where the drill cores have come from, is less than 10km from Ivittuut and only 5km from the port of Gronnedal.
It is one of the 12 larger Gardar alkaline intrusions in Greenland and is recognised as one of the prime rare earth elements (REE) targets in the country.
The release explains that the geophysical analysis over Gronnedal-Ika carbonatite/dyke geological units have been confirmed to be far more extensive than previously known, which is further encouragement for potential REE and sulphide mineralisation. REE occurs throughout the carbonatite complex, especially in late-stage veins where it occurs as various strontium REE carbonate minerals.
All in all, while there is still a lot of work to be done, the company appears to believe it has the potential to be a key supplier of REE in the future. This goes some way to explaining the strong gains by the Eclipse Metals share price over the last month.
