The Vital Metals Limited (ASX: VML) share price has leapt higher this morning after a bumper production update from the rare earths producer.
At the time of writing, the Vital Metals share price is up 5.56%, trading at 5.7 cents.
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Why is the Vital Metals share price climbing higher?
Shares in the Aussie-Canadian miner shot more than 9% higher at Friday's open before paring back some of those gains. That share price swing comes after Vital Metals provided an update on its Nechalacho rare earths project in Northwest Territories, Canada.
The ASX company has now completed its first month of rare earths production at the site. Vital Metals Managing Director Geoff Atkins said, "We are really pleased with the way our operations are ramping up at Nechalacho, and the exciting developments we've made with ore sorter operation and mineralisation at the North T pit wall during July."
Notably, Vital Metals said mining at the pit has intersected high-grade rare earth oxide (REO) mineralisation in the northern edge of the wall. The company said this new material could allow Vital to potentially expand the North T pit beyond the existing mine plan.
Today's update impressed investors who have snapped up shares. The Vital Metals share price leapt more than 5% at the start of trade following the news.
Vital Metals said its ore sorter has exceeded expectations thus far. The Nechalacho ore sorter commenced processing in July with high grade product output better than expected.
The production update is the second positive update from Vital Metals this week. Outstanding first-pass assay results from the Nechalacho project saw the ASX share jump higher on Tuesday. That included news that its Tardiff Zone 2 and 3 could significantly extend the project's mine life.
These recent gains mean that the Vital Metals share price has now climbed 90% higher in 2021 with a current market capitalisation in excess of $250 million.
