A little-known ASX gold share is setting the bar high today.
While the All Ordinaries Index (ASX: XAO) is down 0.2% heading into the lunch hour, this gold stock junior leapt 77.7% in early trade and is currently up 58.3% from yesterday's close.
The big move higher doesn't come after the ASX gold share struck a rich vein of the yellow metal, but rather a significant rare earth element (REE) announcement.
Any guesses on which explorer we're talking about?
If you said Victory Goldfields Ltd (ASX: 1VG), give yourself a gold star.
Image source: Getty Images
What REE discovery did the ASX gold share report?
The Victory Goldfields share price is rocketing after the company announced promising initial results from its 118 hole air core (AC) drill campaign at its North Stanmore REE project, located in Western Australia.
The results revealed "significant" REE was confirmed up to 4 kilometres from the explorer's initial discovery.
The ASX gold share said the assays returned Heavy Rare Earth Oxide (HREO) enriched with a HREO/TREO ratio of 34%. The company noted this could be up to 350% more valuable compared to Light Rare Earth Oxide (LREO) hard rock deposits.
Scandium – used to manufacture the alloys in fighter jets as well as in hydrogen fuel cells – in the latest assays exceeded global economic grades.
Commenting on the results sending the ASX gold share rocketing higher today, Victory Goldfields' executive director Brendan Clark said:
Rare Earth Element grades and critical metal ratios at this level, potentially make the discovery one of the most valuable ionic clay hosted rare earth systems compared to our peers based on our high basket price…
The North Stanmore discovery also benefits from direct access to the Great Northern Highway and close proximity to Perth and the Geraldton Port, making the discovery a market leader for its logistical advantages.
The explorer intends to immediately kick off another 10,000 metres of AC drilling and has appointed RSC Mining & Mineral Exploration to commence a (JORC) Mineral Resource Estimate.
Victory Goldfields share price snapshot
The ASX gold share is a relative newcomer to the exchange, having listed on 22 July 2021.
With today's big intraday lift factored in, the Victory Goldfields share price is up 43% in 2022. That compares to an 8% calendar year loss posted by the All Ordinaries.
