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
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.