This ASX rare earths share more than doubled in early trade this morning before being put on ice.
The Australian Rare Earths Ltd (ASX: AR3) share price soared 108% this morning from 25 to 52 cents. The company's share price then retreated to 45.8 cents, up 83%, before entering a trading halt.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 2.16% today.
Let's take a look at what is going on with this ASX rare earths share.
What's going on?
Australian Rare Earths shares have been placed temporarily on ice pending a further announcement.
On the weekend, news hit the media that Australian Rare earths has made a discovery that could "enable an operation of Chinese scale". The Australian noted China may also be planning to ban the export of rare earth products to the USA.
The discovery is a clay hosted rare earths resource known as the Koppamurra Project in South Australia.
As Australian Rare Earths advised last week, the JORC Mineral Resources estimate at the project has increased by 25% to 101 million tonnes at 818 parts per million (ppm) total rare earth oxide (TREO).
Further, the indicated resource has lifted 40% to 63 million tonnes at 839ppm TREO.
The company said this "outstanding result elevates Koppamurra to an ionic clay hosted rare earth resource of global and multigenerational significance".
The "resource is open in all directions" with a 1,400 Mt exploration target.
The company noted in a presentation this clay hosted deposit is the same style that "underpins China's massive rare earths industry".
Commenting on the discovery, acting managing director Rick Pobjoy said:
Koppamurra is one of only very few advanced ionic clay-hosted rare earth deposits located outside of China or Myanmar. The Project it is now clearly emerging as one of both scale and quality.
The company is continuing to drill at the site and plans to provide a further resource update at the end of the third quarter.
Australian Rare Earths share price snapshot
The Australian Rare Earths share price has slid 31% in the past year. However, in the last month, it has rocketed by 103%.
This ASX rare earths share has a market capitalisation of about $43 million based on the current share price.
