The Krakatoa Resources Ltd (ASX: KTA) share price is heading for the sky today, up 94.9% to 12 cents at the time of writing.
Shares in the ASX resource minnow were placed in a trading halt on Friday before market open "pending the announcement of material exploration results from its 100% owned Mt Clere REE Project".
REE, if you're not familiar, stands for rare earth elements. These are comprised of a group of 17 metals. Many REEs are critical components in gadgets like your smartphone, alongside high-tech military hardware, modern vehicles, and much more.
Below we look at the exploration results, released this morning, that are sending the Krakatoa share price soaring.
What exploration results were announced?
The Krakatoa Resources share price is rocketing after the ASX resource explorer reported it's discovered "widespread clay hosted ionic type REE in the regolith" at its Mt Clere project in Western Australia.
The initial batch of drill results, taken at the Tower prospect, indicate high levels of regolith-hosted REEs. According to the release, these include significant enrichment in the magnetic elements, concentrated in the clay saprolite profiles.
Commenting on the initial results, Krakatoa's CEO Mark Major said:
These results have now confirmed that widespread clay hosted, ready soluble REEs exist at significant concentrations within the thick saprolite regolith of the Mt Clere project…
Demand for these magnetic and critical REEs are expected to increase over the next ten years, as the world embarks on the electric revolution. We are now in a strong position to capitalise on this potential as we have only covered a six square kilometre area, mineralisation is open, thick and close to surface.
Investors could also be bidding up the Krakatoa Resources share price today on the potential of other juicy REE targets within its property.
"Significantly, we have multiple other high priority targets within the extensive 2,300 square kilometre property," Major said.
The company is still awaiting results for 18 more drill holes at its Tower Prospects. It intends to fast track a comprehensive infill and extensional drill program at Tower Prospect, along with reconnaissance drilling of other "highly prospective areas".
Krakatoa Resources share price snapshot
With today's intraday gains factored in, the Krakatoa Resources share price is up 130% in 2022. That compares to a year-to-date loss of 2% posted by the All Ordinaries Index (ASX: XAO).
