The S&P/ASX 200 Materials Index (ASX: XMJ) is in the red today, but one ASX mining share is soaring higher.
The Desert Metals Ltd (ASX: DM1) share price soared 62% in earlier trade today to 67.3 cents before pulling back. The company's share price is now trading at 46.5 cents, a 12% gain.
Let's take a look at why ASX mineral explorer Desert Metals is having such a good day.
Significant rare earth discovery
Investors are buying up Desert Metals shares on the back of assay results from recent drilling. The company is exploring the Innouendy project in Western Australia.
Assay results confirmed a "significant clay-hosted rare earth discovery". The total rare earth oxide (TREO) intersections appeared thick and continuous.
New TREO intersections include:
- 8 metres (m) at 2734 parts per million (ppm) from 24m (including 3m at 4104ppm) at hole 80
- 17m at 1347ppm from 28m (including 8m at 2085, including 4m at 2791) at hole 130
- 8m at 1429ppm from 20m (including 4m at 2040ppm) at hole 138
Commenting on the results, managing director Rob Stuart said:
This is a great result for the company to confirm a significant rare earth discovery at an early stage in the exploration programs at the Innouendy Project.
The mineralisation assayed to date is showing encouraging grades over significant widths from close to surface.
Desert Metals is expecting to see further assay results in coming weeks. After these results are received, the company will conduct a further expanded drill program.
Desert Metals share price snapshot
The Desert Metals share price has soared 45% in the past year, while it is up 29% year to date.
This ASX mining share has a market capitalisation of about $22 million based on the current share price.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 3.6% in the past year.
