Rincon Resources Ltd (ASX: RCR) shares are among the best performers on the market on Wednesday.
In morning trade, the ASX mining stock is up a sizeable 14% to 12 cents.
Why is this ASX mining stock rocketing?
The catalyst for this strong gain has been the release of an announcement from the mineral exploration company today.
According to the release, Rincon Resources has received aboriginal heritage clearance for drilling activities to commence at the West Arunta Project in Western Australia.
The ASX mining stock will now be able to drill its high-priority Avalon niobium and rare earth elements (Nb-REE) target, as well as the Sheoak, K1, and K2 targets.
Management is particularly positive about its Avalon gravity anomaly. It highlights that the anomaly is comparable in size to the one underlying the Luna deposit owned, which is owned by WA1 Resources Ltd (ASX: WA1). That deposit was recently confirmed as the most significant niobium discovery globally in over 70 years with an inferred mineral resource estimate of 200Mt @ 1.00% Nb2O5.
Rincon Resources has planned an initial 3,000m diamond drilling/reverse circulation (DD/RC) drill program to primarily test the source of the Avalon gravity target. It will also test the 3 km lateral extent of weathered zone where potential niobium enrichment may be present.
Drilling is set to begin in the middle of July following the completion of site works. These activities will be supported by a recent $5.6 million capital raising.
'We are excited'
The ASX mining stock's managing director, Gary Harvey, revealed that the company was excited to start its drilling activities. He said:
We are excited to commence drilling at our Avalon target, which we interpret as a potential carbonatite intrusion with niobium and rare earth element (Nb-REE) enrichment in the upper weathered profile. The size and characteristics of the Avalon anomaly, compared to recent significant discoveries in the region, heighten our anticipation for this program.
The Luni discovery by WA1 Resources has demonstrated the potential for world-class niobium deposits in the West Arunta region. With Avalon's comparable size, we are eager to explore its full potential. With $5.6 million recently raised, our strong financial position enables us to aggressively pursue these opportunities and potentially extend our initial program should positive results warrant it.
Following today's gain, this mining stock has now doubled in value over the last 12 months. Though, it still only has a market capitalisation of approximately $34 million.
