There's a little-known ASX mining stock that has handed investors absolutely stunning gains over the week gone by.
Last Monday, 5 February, the rare earths miner closed trading for 13 cents a share. At the time of writing, those same shares are swapping hands for 31 cents apiece, up an eye-popping 138% in a week.
Meaning, if I'd invested $5,000 in this ASX mining stock a week ago, I'd be sitting on $11,923 right now!
If you said American Rare Earths Ltd (ASX: ARR), go to the head of the virtual class.
Here's why investors have been sending this ASX mining stock rocketing.
What's boosting the American Rare Earths share price?
A lot's been happening with American Rare Earths over the past trading week.
This appears to have been spurred by last Wednesday's announcement of an increase in the resource estimate at the company's Halleck Creek project, located in the US state of Wyoming.
The ASX mining stock reported that its resource estimate had increased by 64% to 2.34 billion tonnes at 3,166 parts per million (ppm) Total Rare Earth Oxides (TREO). Shares closed up 3.9% on Wednesday and 3.7% on Thursday before really going meteoric following Friday's investor presentation.
The ASX mining stock closed up 14% on Friday and gained another 50% on Monday. Shares are up 29% at the time of writing today.
Investor enthusiasm looks to have spiked after the company noted it has the largest ASX-listed portfolio of strategic rare earth element assets in the US. And with the upgraded resource estimated at its 100% owned flagship Halleck Creek Project, management reported the asset has the potential "to be the largest rare earths deposit in the US".
With the Western world eager to secure rare earths elements from sources outside of China, American Rare Earths looks to be well-placed to deliver the technology crucial elements.
How has this ASX mining stock performed longer term?
Most of the recent big gains for American Rare Earths shares have come over the past week.
The ASX mining stock is up 26% since this time last year and up 1,425% over five years.