ASX mining share surges 18% as land negotiations get underway

This ASX 300 miner is enjoying a strong market response to its quarterly activities report.

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ASX mining share WA1 Resources Ltd (ASX: WA1) is enjoying a strong finish to the week after the company released its September quarter activities report.

The WA1 share price soared by 18% to reach an intraday high of $14.42 in earlier trading.

The ASX mining share is now changing hands for $14.22, up 16.27%.

Let's take a look at the report.

Miner looking at a tablet.

Image source: Getty Images

ASX mining share rockets 18% on positive quarter

WA1 Resources reported a cash balance of approximately $94.5 million as of 30 September.

During the quarter, the company incurred expenses of $7,905,381.

Highlights of the quarter centred around the company's 100%-owned West Arunta Project.

The project is located in Western Australia, approximately 590km west of Alice Springs.

During the quarter, WA1 Resources released an Initial Inferred Mineral Resource estimate (MRE) for the Luni niobium deposit at West Arunta.

The MRE is 200 Mt at 1.0% Nb2O5 and contains a significant high-grade subset of 53 Mt at 2.1% Nb2O5.

The company said the MRE confirmed Luni as one of the world's major critical mineral deposits.

Extensive field activities continued during the quarter.

Three drill rigs collected more samples for ongoing metallurgical testing. The company also installed monitoring bores to support hydrogeological investigations.

Metallurgical, engineering, and environmental-related studies and surveys were ongoing at the site.

WA1 also signed a negotiation protocol with Tjamu Tjamu (Aboriginal Corporation) RNTBC, on behalf of the Kiwirrkurra common law holders, to negotiate in good faith.

They did so with the view to entering into an agreement for an access road and other project infrastructure components to be located within the Kiwirrkurra native title determination area.

WA1 said the protocols would "provide a pathway for consultation with the two key native title holders …".

What else happened in the September quarter?

WA1 Resources completed a $60 million capital raise at $17 per share.

The ASX mining share retreated 9.39% on the day of the news.

A total of approximately 3.5 million new shares were issued to institutional, sophisticated and professional investors.

WA1 Resources said the money would primarily support ongoing drilling, metallurgical testing, permitting, and development activities at West Arunta.

On 23 September, the ASX mining share ascended into the S&P/ASX 300 Index (ASX: XKO).

What else is happening with WA1 Resources shares?

On Wednesday, the ASX mining share received a 0.53% boost when the company released drilling results from West Arunta.

WA1 reported high-grade mineralisation and some of the best niobium intersections to date.

Managing Director, Paul Savich, said:

We are very pleased with the initial results of this drilling, with a number of eastern and south-eastern holes providing additional high-grade mineralisation.

ASX mining share snapshot

The WA1 Resources share price has lifted 10.92% in the year to date.

This compares to a 12.6% decline in the S&P/ASX 300 Metal & Mining Index (ASX: XMM).

Motley Fool contributor Bronwyn Allen 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.

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