Dreadnought share price jumps on 'tier 1 project' potential

This mineral exploration company could be sitting atop a tier one rare earths project.

| More on:
A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.

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

The Dreadnought Resources Ltd (ASX: DRE) share price is having a good session on Thursday.

At the time of writing, the rare earths explorer's shares are up 6% to 3.5 cents.

Why is the Dreadnought share price jumping?

Investors have been buying the company's shares today after it announced a significant resource increase and upgrade at the Yin REE Ironstone Complex, which is part of the 100% owned Mangaroon project in the Gascoyne Region of Western Australia.

According to the release, the resource now totals 29.98Mt @ 1.04% TREO and has been delivered in only 18 months from discovery. It contains significant neodymium and praseodymium (Nd+Pr) at various cut-off grades.

The good news is that this sizeable resource could only be a fraction what is underground. That's because it only covers ~10% of the 43km long Yin strike.

Management believes that this confirms the 100% owned Mangaroon project as a globally significant critical minerals complex with a combined, high confidence resource at Yin and the Gifford Creek Carbonatite of 40.82Mt @ 1.03% TREO.

It feels that this points to a "long-life, strategically important, tier 1 project" in one of the world's top investment jurisdictions.

Dreadnought's Managing Director, Dean Tuck, commented:

Since drilling commenced in June 2022, Dreadnought has delivered another substantial increase in the initial Resource over just 4.6kms of the Yin Ironstone Complex. The upgraded independent Resource confirms Yin as a high-grade and high Resource intensity deposit. Both material factors in a project's economics. Yin continues to demonstrate one of the highest NdPr:TREO ratios in the world. We are proud of how much has been achieved in such a short space of time and are looking forward to continuing to build on the region's potential in 2024.

Motley Fool contributor James Mickleboro 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 »