The WA1 Resources Ltd (ASX: WA1) share price has returned from its trading halt with a bang on Monday.
In afternoon trade, the ASX mining share is up a massive 30% to $2.33.
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Why is this ASX mining share rocketing higher?
Investors have been scrambling to buy the company's shares after it released a very positive update on its drilling program at the 100% owned West Arunta Project in Western Australia.
It is still early days in respect to assay results, with just the first three reverse circulation (RC) holes completed at the Luni carbonatite in late March. However, the results that have been analysed so far have been very positive.
'Globally significant deposit'
Management notes that drilling at Luni has quickly consolidated a shallow and extremely high-grade mineralised envelope by stepping out on a broad 200m spacing. This means that its confirmed high-grade niobium mineralisation now spans 400m north-south, 400m east-west and is open in all directions.
This is great news for the company given how few niobium mines there are globally and how demand is expected to increase for the critical raw material in the future.
The ASX mining share's managing director, Paul Savich, commented:
Over 90% of the global supply of niobium is produced from only two operations in Brazil. A third mine in Canada comprises the final existing niobium mine globally. All three operations produce a ferroniobium end-product (~65% Nb) for direct application as a steel alloy with no further downstream processing required. In addition, niobium has exciting developing applications in the fast-growing green energy space.
Luni continues to demonstrate the potential to host a globally significant deposit of one of the world's most critical raw materials. Our reconnaissance drilling, along with detailed planning for other activities including resource definition and metallurgical test work, are ongoing with further assays due in the coming weeks.
Further samples, including the remaining un-assayed intervals in these holes, have since been submitted for analysis.
