Red Dirt (ASX:RDT) share price leaps 25% on assay results

The company’s latest findings at the Mt Ida Project have excited ASX investors today.

| More on:
A mining executive from Red Dirt Metals chats on her mobile phone looking pleased with a mining site and mining truck in the background

Image source: Getty Images

The Red Dirt Metals Ltd (ASX: RDT) share price is soaring today following strong assay results at the Mt Ida Project in Western Australia.

At the time of writing, the mining exploration company’s shares are up 10.45% to 74 cents.

However, the Red Dirt share price reached an intraday high of 84 cents shortly after the market open and this was a dramatic 25% jump on yesterday’s closing price of 67 cents.

What are the results?

Red Dirt reported assay results for a drill hole that had been previously drilled by La Mancha Resources in 2006.

Surprisingly, the pegmatite interval was never cut or analysed until being submitted for analysis by Red Dirt. Lithium bearing minerals were identified in the drill core, which led to samples being taken.

As such, the assay results confirmed the high-grade potential for lithium-caesium-tantalum (LCT) bearing pegmatites.

Red Dirt highlighted the following:

  • 21.7 metres at 2.11% of lithium oxide
  • 302 parts per million (ppm) of Tantalum pentoxide
  • 0.49% of iron oxide from 250.7 metres.

One ppm is equivalent to 1 milligram of a chemical or contaminate per litre of water (mg/l) or 1 milligram.

A drilling campaign is now underway at Mt Ida. targeting 25,000 metres of reverse circulation (RC) and 7,000 metres of diamond drilling.

Diamond drilling is a more efficient way of achieving precise sampling and analysis. RC drilling is used for extracting bulk samples. RC drilling is faster but diamond drilling delivers more accuracy in the results.

Red Dirt CEO Matthew Boyes commented:

These assay results confirm the potential the Mt Ida system has of hosting very high-grade lithium-caesium-tantalum (LCT) bearing pegmatites in a system that’s relatively unexplored to date for this style of mineralisation.

Walk up drill targets under existing known pegmatite outcrops will be initially focused on in the run into Christmas and will help our team build up a better understanding of the structural controls and orientation of these pegmatitic bodies.

About the Red Dirt share price

Over the past 12 months, Red Dirt shares have accelerated by 198%. A sharp rise began in September 2021.

Red Dirt commands a market capitalisation of about 97 million, with approximately 145 million shares outstanding.

Should you invest $1,000 in Red Dirt right now?

Before you consider Red Dirt, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Red Dirt wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras 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.

More on Resources Shares

a woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face.
Gold

Here’s why the Ramelius (ASX:RMS) share price tumbled 8% to 4-month lows today

Key points The Ramelius share price sank 8% today Investors did not warm to the company’s quarterly results Gold production …

Read more »

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today
Resources Shares

Did this just cause the American Rare Earths (ASX:ARR) share price to surge 30% higher?

Key points American Rare Earths’ shares are rocketing higher today A letter to shareholders may have given its shares a …

Read more »

ASX miners crash opportunity broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buy
Broker Notes

Time to sell? Macquarie just downgraded these 3 ASX shares from buys

Key points Macquarie comes out with a list of downgrades today The 3 ASX shares are all concentrated in resources …

Read more »

mining worker making excited fists and looking excited
Resources Shares

Is the BHP (ASX:BHP) share price a buy in all of this volatility?

Key points The BHP share price has been outperforming the ASX 200 in 2022 Iron ore continues to rally higher, …

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches his Neometals shares rising on his laptop
Resources Shares

Why is the BHP (ASX:BHP) share price leaping ahead today?

The S&P/ASX 200 Index (ASX: XJO) has unfortunately slipped into negative territory so far this Thursday, after an initially strong market …

Read more »

Man open mouthed looking shocked while holding betting slip
Broker Notes

Broker tips Fortescue (ASX:FMG) share price to sink 30% and warns of dividend cuts

The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher today after a rise in the iron ore …

Read more »

Business man marking Sell on board and underlining it
Broker Notes

Mineral Resources (ASX:MIN) share price falls 5% following brokerage downgrade

Key points The Mineral Resources share price is coming under more pressure after JPMorgan downgraded it to underweight or sell …

Read more »

Female worker sitting desk with head in hand and looking fed up
Resources Shares

Own Rio Tinto (ASX:RIO) shares? What options does the company have in response to the Serbian government’s decision

Key Points Rio Tinto shares withstand market pressure Management looking at legal options to overturn the Serbian Government’s decision Rio …

Read more »