Dreadnought share price pops then drops despite 'significant' discoveries

What's happening with the mineral explorer's shares today?

| More on:
A sad Carnaby Resources miner holds his head in his hands

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Dreadnought Resources shares are slumping on Monday despite two discoveries posted to the market
  • The explorer has discovered high-quality ironstones at its Sabre and Yin exploration sites 
  • Strong yields of prized neodymium and praseodymium elements were also reported 

The Dreadnought Resources Ltd (ASX: DRE) share price opened higher at 15 cents this morning after the company came out of its trading halt.

However, the Dreadnought share price has not maintained its positive momentum, and currently trades a hefty 5.7% lower at 13 cents.

In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) is having a good start to the week, up 1.03% at the time of writing.

Shares in Dreadnought were frozen last Thursday to give the mineral explorer time to prepare a release regarding its exploration results for its Mangaroon project in Western Australia.

Dreadnought posted two mineral discoveries to the market this morning. Let's cover what the company announced.

What's the drill?

Dreadnought Resources announced its drilling intersected REE ironstones at its Sabre discovery site. Previous drilling in Sabre uncovered ironstone deposits 10m to 21m thick over an area of approximately 1km.

These drillings were part of a larger effort of drilling 29 holes in total, of which 19 holes have been completed to date. Checks for mineralisation were completed, and further assays (analysis for composition and quality) are expected in November.

Dreadnought Resources managing director Dean Tuck commented:

The significant scale potential of the Mangaroon Rare Earth Project continues to be underscored with thick mineralised REE ironstones at the Sabre discovery (the prospect formally known as Y3).

With two rare earth discoveries in hand now at the Mangaroon REE Project, we look forward to continuing the discovery drilling program with additional drilling at Sabre, Y8 and then the C1-C5 carbonatite targets all commencing this month.

Second discovery at Mangaroon

In a separate announcement, Dreadnought confirmed further ironstone discoveries following preliminary drilling at the Yin site, also part of the Mangaroon project. Ironstone was discovered after drilling 41 out of 120 planned holes, covering an area of approximately 3km.

The company reported yields of strong rare earth elements such as neodymium and praseodymium, with concentrations ranging from 30% to 38%.

These elements are highly prized commodities for use in creating strong magnets for motors used in electric vehicles and their drive chains.

Tuck also commented on the Yin discovery:

Yin continues to deliver exceptional REE results that exceed expectations for the ironstones of the Gifford Creek Carbonatite Complex. We look forward to receiving the remaining assay results from the 120 RC holes drilled to date which will comprise our initial JORC resource at Yin.

Importantly this initial JORC resource will only cover ~3km of the ~16km of strike of the Yin Trend. We are also excited to announce in a parallel announcement the discovery at Sabre (formally known as Y3) and look forward to drilling the C1-5 carbonatite targets.

Dreadnought Resources share price snapshot

The Dreadnought Resources share price is up 229% year to date. In contrast, the Materials Index is down by around 10.46% over the same period.

The company's market capitalisation is $410.5 million based on its share price today.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Matthew Farley 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.

More on Materials Shares

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Rio Tinto share price tumbles on CEO bombshell news

The mining giant is now looking for a new leader.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

What's going on with the Fortescue share price today?

This mining giant is making changes to its leadership.

Read more »

Happy construction worker at a building site with a group of workers at the background.
Materials Shares

After its result, does Macquarie rate James Hardie shares a buy, hold or sell?

The company announced its FY25 earnings on Wednesday.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Fortescue shares fall on Iron Bridge blow

Iron Bridge is taking longer to ramp up than planned.

Read more »

Three miners looking at a tablet.
Materials Shares

Buy Rio Tinto shares for a 23% return

Let's see which broker is tipping this mining giant as a top buy.

Read more »

A bricklayer peers over the top of a brick wall he is laying with a level measuring tool on top and looks critically at the work he is carrying out.
Materials Shares

Brickworks shares have surged 15% in a month. Are they still good value according to Macquarie?

Here's what this broker has to say about the stock.

Read more »

A man checks his phone next to an electric vehicle charging station with his electric vehicle parked in the charging bay.
Materials Shares

Are Pilbara Minerals shares too cheap to ignore?

A leading broker has given its verdict on this beaten down lithium miner.

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Materials Shares

Does Macquarie rate James Hardie shares a buy, hold or sell?

The company is set to report FY25 earnings this week.

Read more »