The S&P/ASX 200 Materials Index (ASX: XMJ) climbed 0.19% today, but one ASX mining share ascended far higher.
The OD6 Metals Ltd (ASX: OD6) share price rocketed 61% in today's trade from 29.5 cents to a high of 47.5 cents. But it then pulled back to close the day at 42 cents, a 42% gain.
Let's take a look at why this rare earths explorer soared today.
Image source: Getty Images
What's going on?
OD6 Metals is exploring the Splinter Rock and Grass Patch rare earth elements projects near Esperance in Western Australia.
In today's news, the company announced it had discovered "bumper rare earth grades" and "extensive thicknesses" at the Splinter Rock project.
Assay results show higher grades and greater thickness than previously found in the initial drilling program.
Total Rare Earth Oxides at grades of up to 6,605 parts per million (ppm) were discovered, including clay thickness at high grades between 20 to 80 metres.
Results included:
- 69 metres at 1483ppm TREO (21.1% Magnet REO) at drill hole SRA0227
- 66 metres at 1516ppm TREO (20.2% Magnet REO) at SRA0226
- 55 metres at 1781 ppm TREO (23.2% Magnet REO) at SRACO218
Commenting on the news, managing director Brett Hazelden said:
These exceptional drill results represent some of the highest rare earth grades, over some of the thickest intersections seen in an Australian clay hosted rare earth project.
With thicknesses of 20m to 80m, grades in excess of 1,000ppm Total Rare Earths, and consistency across several kilometres of width, the Splinter Rock project has emerged as a globally significant discovery.
Overall, 74 of the 83 drill holes returned "significant grades" and thickness. A phase three 188-hole drill program will start in the second quarter of 2023.
Share price snapshot
The OD6 Metals share price has surged 110% in the last year. In the past month alone, the company's share price has soared 127%.
This ASX mining share has a market capitalisation of more than $23 million based on the current share price.
