3 ASX mining shares that surged over 20% Tuesday

Why did these ASX mining shares thrash the market today?

Key points
  • Two of the companies making big moves reported positive updates which investors were obviously feeling bullish about
  • The gains made by these ASX mining shares also defied the wider sell-off in the materials sector 
  • Price action in the broader market wasn't helping boost these shares either, with the ASX 200 ending the day slightly down

Three ASX mining shares defied the sell-off in the materials sector on Tuesday.

The S&P/ASX 200 Materials Index (ASX: XMJ) was today's second-worst-performing sector index, losing 1.01% by market close. ASX 200 lithium shares were hit particularly hard, with the Core Lithium Ltd (ASX: CXO) share price dumping a massive 15.82% by the day's end.

But back to our big-moving little miners, which also outperformed the broader market by a large margin. The S&P/ASX 200 Index (ASX: XJO) didn't move much at all today, finishing the session with a 0.07% loss.

Let's uncover why these mining shares were off to the races on Monday.

A happy miner pointing.

Image source: Getty Images

Victory Goldfields Ltd (ASX: 1VG)

The Victory Goldfields share price finished Tuesday's trade up by a sizeable 30.56%.

Earlier in the session, shares of the gold junior exploded over 70% after the company posted news regarding a new discovery of not gold, but rare earths (REE).

Victory Goldfields revealed the drilling results from its North Stanmore REE project located in Western Australia, which included high-grade heavy rare earth oxide (HREO) yields.

The discovery was described as being 'significant' as it's up to 350% more valuable than previously reported deposits.

Victory Goldfields executive director Brendan Clark commented that the discovered grades and ratios "potentially make the discovery one of the most valuable ionic clay hosted rare earth systems compared to our peers based on our high basket price."

Lycaon Resources Ltd (ASX: LYN)

The Lycaon Resources share price also gained an impressive 32.26% on Tuesday.

The mineral explorer announced this morning it had entered into a binding heads of agreement to acquire the Stansmore Carbonatite Project located northwest of Alice Springs.

Elements explored at the site are niobium and rare earths.

The company's technical director, Thomas Langley, described the news as "an exciting opportunity for Lycaon".

Lycaon Resources is a microcap ASX mining share with a market cap of just $14.5 million.

BBX Minerals Ltd (ASX: BBX)

Finally, BBX Minerals ended Tuesday's trade up by 23.68%.

There was no news from the company today, but shares could be surging higher on the euphoria of yesterday's announcement.

The mineral explorer reported that recent bioleaching test work had delivered impressive results. BBX Minerals reported that there was a "significant increase in reported precious metals following [the] bioleaching process".

Further studies are underway that will include assay results using a larger sample size.

The technology will reportedly help with "metal extraction from low-grade ores and mineral concentrates".

Motley Fool contributor Matthew Farley 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 Scott Phillips.

More on ASX Share Market News

a close up of a woman's face looks skywards as she is showered in a sea of graphic symbols of gold and silver coins bearing the bitcoin logo.
Cryptocurrencies

Are you a 'greater fool' for owning Bitcoin?

Is Bitcoin truly an investment?

Read more »

IPO written in purple on blocks on top of each other in the air.
IPOs

Anthropic IPO: Are 5 types of shares too many?

Anthropic is going for a very unusual setup.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Broker Notes

Buy, hold, sell: Resmed, Goodman Group, CBA shares

We review three fresh buy, hold, and sell calls from John Athanasiou at Red Leaf Securities.

Read more »

colleagues on a lunch break looking at iPhone
Broker Notes

Top brokers name 3 ASX shares to buy now

Here's what brokers are recommending as buys this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
ASX Share Market News

5 things to watch on the ASX 200 on Friday

Will Friday the 13th be unlucky for the share market?

Read more »

Woman with her fingers crossed and eyes shut.
Broker Notes

7 ASX 200 shares in the buy zone as optimism returns to the market: experts

Brokers reaffirmed their buy calls on Liontown, Rio Tinto, Xero, and others this week.

Read more »

A little girl is surprised at a science experiment.
Opinions

2 ASX shares with the potential to double in a year, and the risk that keeps me cautious

One of these ASX shares could climb up to 123% higher.

Read more »

ASX shares broker ratings represented by three different coloured buttons.
Broker Notes

6 ASX shares upgraded and downgraded by the experts this week

Brokers have changed their ratings and 12-month price targets on Qantas, Codan, and others. 

Read more »