Up 500% in 3 months: Guess which high-flying ASX mining stock is jumping on big news

More exciting news has come out of this explorer on Thursday.

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A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today

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Key points

  • This high-flying ASX mining stock is surging on news of an aggressive drilling program to enhance its gold and rare earth potential at its Colosseum Project.
  • The company's comprehensive drilling efforts aim to expedite the Bankable Feasibility Study, potentially accelerating the path to production.
  • Management is optimistic about discovering new gold and rare earth zones, spurred by recent geophysical data and advancements in drilling technology.

Dateline Resources Ltd (ASX: DTR) shares are having yet another strong session on Thursday.

At the time of writing, the ASX mining stock is up 18% to a 52-week high of 59 cents.

This latest gain means that the gold and rare earths explorer's shares are now up approximately 500% over the past three months.

Why is this ASX mining stock jumping again?

Investors have been fighting to get hold of the company's shares this morning after responding positively to the release of an announcement.

According to the release, drilling is progressing well at its 100%-owned Colosseum Gold-REE Project in California.

It notes that the multi-faceted program is focused on three key components aimed at rapidly advancing the project's gold and rare earth element (REE) potential.

This includes a series of infill and verification drillholes that are being completed to support the Bankable Feasibility Study (BFS), as well as work to upgrade the existing mineral resource and gather geotechnical data for mine design.

In addition, confirmatory drilling on a historic ore stockpile at site will be undertaken to validate its grade for potential processing. Data from this drilling will feed into mineral resource model updates and engineering studies for the Colosseum BFS.

The ASX mining stock also advised that targeted drilling is testing recently identified magneto-telluric (MT) geophysical anomalies that may indicate additional gold-bearing breccia pipes around the known deposits.

Management highlights that this follow-up program builds on the success of earlier surveys, aiming to extend beyond the existing 1.1 million ounces gold mineral resource and discover new zones of gold mineralisation.

There are several high-priority gold targets generated from the MT data that will be drilled to assess their grade and continuity.

But it won't be stopping at gold. The company is drilling deep MT-derived targets prospective for rare earth elements. The main target is the 2200N anomaly, which is a robust resistivity feature identified in the recent 3D MT inversion that extends from ~1,000m depth up to near surface.

'An exciting phase'

The ASX mining stock's managing director, Stephen Baghdadi, spoke positively about its drilling program. He commented:

This is an exciting phase for Dateline as we ramp up a major drill program at Colosseum, which is instrumental in accelerating our bankable feasibility study and bringing us closer to production. By utilising our in-house diamond rig alongside Major Drilling's high-powered RC rig, we can significantly increase the pace and scope of drilling, allowing us to tackle mineral resource infill, geotechnical work, and new target testing all at once.

The ability to drill more metres faster will fast-track the Colosseum BFS and shorten the timeline to first gold production. We're also eager to drill the newly identified gold and REE targets, which have the potential to add substantial value as we advance this project.

Motley Fool contributor James Mickleboro 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.

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