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.
Image source: Getty Images
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.
