Shares in rare earths company RareX Ltd (ASX: REE) charged higher today, finishing 21% in the green. Investors were piling into RareX shares following a company announcement on its Cummins rare earths project.
RareX advised of results from a recent drilling program at the Cummins site where it is exploring for rare earths minerals.
The RareX share price traded as high as 12.5 cents today before cooling off in afternoon trading to finish at 11.5 cents.
Here are the details out of the rare earth miner's camp.
What did RareX announce?
The company advised it had come into "exceptional high-grade intercepts of up to 10.6% TREO [total rare earth oxides] in [the] primary zone at Cummins Range Rare Earths Project".
These assays include a "world-class intercept of 102.9m at 1.6% TREO with more assays to come".
Results were received from RareX's diamond drilling program at the Cummins Project, located in the Kimberly region in WA.
The results provide evidence the primary zone potentially contains high-grade mineralisation "reinforcing the opportunity to substantially increase the current mineral resource at the site".
RareX notes that diamond core drilling has significantly advanced the geological understanding of the Cummins Range deposit and continues to deliver high-grade rare earths and niobium mineralisation.
The drilling of multiple new zones in the hanging wall and footwall to new depths is "very exciting", according to the company, and "shallow wide rare earths and niobium intercepts in the breccia zone is even better".
This breccia zone has consistent wide intervals of 1% to 2% TREO and strong niobium mineralisation as shown in other drill holes in this zone.
Speaking on the announcement, RareX managing director Jeremy Robinson said:
These exceptional results are a game-changer for Cummins Range. The diamond drilling completed towards the end of the year has been geared towards unlocking the potential of the primary zone and showing that we have a potentially much larger and higher grade project on our hands here. These results strongly vindicate that belief.
Robinson continued:
Partial assays from CDX0011 have returned some of the highest grades ever recorded at Cummins Range, including a fantastically high-grade zone grading 10.6% TREO – rarely seen in deposits like this. Plus, we have a world-class 103 metre intercept in hole CDX0004, in an area where previous explorers believed the mineralization had been upgraded by weathering processes. Instead, we have a very large zone of primary mineralization, which is a very exciting development for the Project.
RareX share price snapshot
In the past 12 months, the RareX share price has fallen 8% into the red, underperforming the benchmark index.
Looking year to date, RareX shares are flat. However, they have climbed 15% in the last month.
