The Meteoric Resources NL (ASX: MEI) share price is lifting off on Thursday.
In morning trade, the ASX mining share is up 18% to 23 cents.
What's going on with this rare earths developer's shares today? Let's find out.
Image source: Getty Images
Why is this ASX mining share rocketing?
Investors have been buying Meteoric Resources' shares this morning in response to the release of drilling results from the Caldeira Project in Brazil.
According to the release, the CVSDD001 drill hole has returned the widest, highest-grade ionic clay REE intercept reported this year at the Caldeira Project.
This is important because CVSDD001 is located outside the Caldeira Project Mineral Resource, which demonstrates significant expansion potential.
'Truly amazing results'
The ASX mining share's executive chairman, Dr Andrew Tunks, was delighted with the news. Dr Tunks commented:
The Caldeira Project continues to deliver truly amazing results that even a month ago, we could not have predicted. The extensions of REE mineralisation below the Mineral Resource Estimate have now clearly been proven. Our maiden Resource was modelled on the results of previous exploration where all drilling was completed with powered auger.
The depth restrictions of augur drilling limited our understanding of the depth of mineralisation across the project, with only an average drilling depth of less than 10m in historic results. Our diamond drilling now conclusively shows that the depth of mineralised clays is far greater than 10m and that REE mineralisation is developed throughout the entire regolith profile.
Commenting on drill hole CVSD001, the chair adds:
Of course, hole CVSD001, which is outside the resource area, is simply remarkable. It contains the best intercept we have yet seen at Caldeira and ended in strongly mineralised clay. For the first time, we have also seen a strong enriched heavy magnet rare earth zone where we have increased grades of terbium and dysprosium up to 57ppm and 248ppm respectively.
