Why did this ASX rare earths stock just rocket 107%?

We take a look at why this rare earths share is surging.

Woman looks amazed and shocked as she looks at her laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • This ASX rare earths share soared more than 100% today before retreating 
  • Rare earth drilling results were reported to the market 
  • OD6 Metals shares are also soaring today 

This ASX rare earths stock is exploding on the market today amid new drilling results.

Larvotto Resources Ltd (ASX: LRV) shares soared 107% from 13.5 to 28 cents today before slightly retreating. The company's share price is still up 85% at the time of writing. Another rare earths miner, OD6 Metals Ltd (ASX: OD6), is also rising nearly 34% today on the back of a discovery.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 0.34% today.

What's going on?

Larvotto Resources is exploring the Eyre Project located 40km east of Norseman in Western Australia.

Today, the company advised of "bonanza rare earth drill results" at the Merivale South prospect within the project.

The company discovered total rare earth element oxide (TREO) values of up to 1.26% (12,611ppm) TREO including 3,787ppm magnetic REO.

Larvotto noted the results emphasise the potential of the 3km long high-grade TREO anomaly within a larger 8km envelope. Mineralisation is open in all directions.

The company believes the mineralisation is hosted within "ionic clays", which is useful for extraction. Test work is being conducted to affirm this theory.

Larvotto is now planning to follow up on drilling given the "vast size of the geochemical soil anomaly".

Commenting on the news, managing director Ron Heeks said:

Today's results are exceptionally high-grade intervals for ionic clay mineralisation and come from
shallow depth.

The potential for significant amounts of TREO here is excellent, with Larvotto having identified two
further proximate geochemical anomalies for further testing.

Larvotto Resources share price snapshot

The Larvotto Resources share price has lost 7% in the last year. However, it has risen 56% in the year to date.

For perspective, the ASX 200 materials Index has shed 1.52% in the last year.

This ASX rare earths stock has a market capitalisation of about $16.8 million based on the current share price.

Motley Fool contributor Monica O'Shea 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 Share Gainers

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Boss Energy, Core Lithium, Latin Resources, and Santos shares are rising today

These ASX shares are having a good finish to the week. But why?

Read more »

Happy woman in purple clothes looking at asx share price on mobile phone
Share Gainers

Why Invictus Energy, Perpetual, Polynovo, and Zip shares are charging higher

These ASX shares are catching the eye on Thursday. What's going on?

Read more »

two men in mining hats shake hands on a deal with gas pipelines in the background, indicating a deal between Senex and 29 Metals
Share Gainers

Guess which ASX All Ords share just leapt 59% on a new gas discovery

Investors are bidding up the ASX All Ords energy share following a significant gas discovery in southern Africa.

Read more »

Businesswoman whispering in male colleague's ear as he looks surprised
Share Gainers

Up 118%: Is this 'high quality' stock the best-kept secret on the ASX 200?

Why are these pharmaceutical shares turning heads at the moment? The Elvest team explains.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Chalice Mining, Core Lithium, Perpetual, and Polynovo shares are racing higher

These ASX shares are having a very strong session on Wednesday. But why?

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

'Double-digit earnings growth': 2 fast-rising ASX shares not too late to buy

Get on these stocks before all their potential is realised, say Celeste analysts. So what are you waiting for?!

Read more »

Top 10 blank list on chalkboard
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to reality for ASX shares today...

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Share Gainers

Why Droneshield, Origin, ResMed, and Whispir shares are pushing higher

These ASX shares are having a good time despite the market weakness.

Read more »