The Dreadnaught Resources Ltd (ASX: DRE) share price is launching higher on Monday after the company announced a major rare earth element (REE) find.
Drilling at its Mangaroon Project's Yin REE prospect has confirmed mineralised ironstones over approximately 3 kilometres of strike. The company has also identified another 66 REE-prospective anomalies.
At the time of writing, the Dreadnaught share price is 5.6 cents, 9.8% higher than its previous close.
Let's take a closer look at the news driving the mineral exploration company's stock higher today.
What's boosting the Dreadnaught share price?
The Dreadnaught share price is well and truly in the green on the back of successful exploration activities at the company's 100%-owned Mangaroon Project.
RC drilling at the project's Yin prospect has confirmed 3 kilometres of strike, open in all directions. The drilling program saw 67 holes drilled for 6,415 metres, confirming thick, mineralised, REE ironstones. Excitingly, 87% of holes drilled intersected mineralisation.
Following the success, the company is moving to begin diamond drilling at the prospect later this month.
Additionally, magnetic/radiometric surveys found 66 additional REE targets. They're currently undergoing assessment.
Dreadnaught managing director Dean Tuck commented on the news driving the company's share price today, saying:
Drilling at Yin continues to exceed expectations. With a second rig mobilising to site, we are confident that Yin will produce a substantial initial rare earth mineral resource by the end of the year.
We are seeing genuine scale here with runs already on the board and 66 further anomalies recently identified. We also expect to confirm high-grade potential with first assays due back in late July.
The Yin prospect – like the nearby Yangibana Project – is distinctive due to a high proportion of neodymium and praseodymium in its total rare earth oxides. Rock chips from Yin boast a neodymium and praseodymium ratio of up to 48%.
The company also believes the energy transition and heightened geopolitical tensions will drive rare earth prices higher.
Of course, that could bring more good news for the Dreadnaught share price in the future.
