The S&P/ASX 200 Materials Index (XMJ) has gained 6% in a year, but this ASX rare earths share has rocketed far higher.
Shares in the aptly named Meteoric Resources NL (ASX: MEI) have surged 1364% from 1.4 cents at market close on 13 May 2022 to 20.5 cents at the time of writing.
So why has this ASX rare earths share had such a top run in the last year?
Image source: Getty Images
Why has this ASX rare earths share risen so high?
Meteoric shares have been storming ahead since mid-December when the company emerged from a trading halt to announce news of a major acquisition.
On 16 December, Meteoric advised it had entered a binding agreement to acquire the tier-one Clay Rare Earth Element (REE) project in Brazil. The project has 30 licenses.
The company advised drilling at six licences had shown "ultra-high-grade" Total Rare Earth Oxide (TREO) intersections from surface. Meteoric shares soared 50% on the day.
Overall, between market close on 7 December and 1 February, Meteoric shares exploded 700%.
On 20 December, Meteoric announced metallurgical tests confirm the Caldeira project is an "iconic adsorption clay REE deposit".
Commenting on the news, executive chairman Dr Andrew Tunks said:
The initial testwork of the metallurgy at the Caldeira Project is very encouraging. The average recovery of the low temperature magnet REE, Pr + Nd, was 58% and the average recovery of the more valuable high temperature magnet REE, Tb +Dy, was 43%.
In late January, Meteoric presented a quarterly activities report. The company advised it had cash and liquid assets of about $3.05 million.
Meteoric is also exploring the Palm Springs Gold Project in Western Australia. In an announcement to the ASX on 23 February, the company provided assay results for priority targets at the project. Two holes intersected with a "significant amount of carbonaceous shale hosting multiple quartz veins and sulphides at the new Mt Bradley target", the company said.
Meanwhile, on 1 May, Meteoric provided a maiden mineral resource for the Caldeira project, consisting of:
- 409 million tonnes at 2,626 parts per million (ppm) TREO with magnet REO grades of 631ppm including 24% TREO
Commenting on this news, Dr Tunks said:
What a beautiful set of numbers, this is indeed a world class, tier 1 project
Finally, on 8 May, Meteoric provided a drilling update on the Caldeira project. The company said eight of 11 new diamond holes revealed a "significant depth extension of the target clay zone beneath the historic auger holes".
Share price snapshot
Meteoric Resources shares have leapt nearly 300% year to date and more than 71% in the last month.
This ASX rare earths share has a market capitalisation of about $361 million based on the last closing price.
