These two ASX rare earths shares are outperforming the S&P/ASX 200 Materials Index (ASX: XMJ) today.
American Rare Earths Ltd (ASX: ARR) and RAREX Ltd (ASX: REE) both soared by more than 25% at some point today.
For perspective, the materials index is up 1.48% at the time of writing.
So why are these ASX rare earths shares soaring ahead today?
American Rare Earths
American Rare Earths is currently fetching 26 cents a share, up almost 24% and just off its intraday high of 26.5 cents a share. American Rare Earths today provided a maiden JORC Resource estimate for the Halleck Creek project in Wyoming, USA. The total JORC Resource estimate is 1.43 billion tonnes including an estimated 4.73 million tonnes of total rare earth oxides (TREO). The average TREO grade is 3,309 parts per million (ppm), while the average neodymium and praseodymium grade is 734 ppm.
Commenting on the results, CEO and managing director Chris Gibbs said:
These results confirm the company has a strategically significant rare earth asset critically, in the United States, which should enable the largest economy in the world to reduce its dependence on China or other imported rare earths.
Rarex
Rarex shares are soaring nearly 28% at 6 cents apiece. Earlier today, Rarex shares rocketed nearly 45% to 6.8 cents each. Today, Rarex reported a significant increase in the mineral resource estimate at the Cummins Range Rare Earths-Phosphate project in the Kimberley region of Western Australia. The new resource estimate is 397Mt at 0.33% total rare earths oxide (TREO) and 4.2% P2O5 (phosphate). This is 500% more TREO and 800% more phosphate than the 2021 resource estimate.
Commenting on the phosphate price, Rarex said:
Recent world events have put enormous strain on the world supply of phosphate, with the phosphate price increasing by 100% last year.
