WA1 Resources (ASX:WA1) has had a massive surge on the Australian Securities Exchange (ASX) following the release of first results from its maiden West Arunta Project drilling program undertaken in July.
The junior exploration company’s share price has skyrocketed more than 542% since 21 October when it was trading at $0.14. It is today (27 October) trading at $0.90 as of 9am AWST, a day after it released the results.
WA1 reports that first drill results revealed a mineralised carbonatite system at the West Arunta Project, about 400km south of Halls Creek, including rare earth element niobium. Niobium is listed as a critical and strategic mineral by Australia, Europe, India, Japan, and the US.
“The discovery of a mineralised carbonatite system in the West Arunta is the first of its kind in the region and is a significant finding from our maiden drilling program”
WA1’s Managing Director, Paul Savich, commented: “The discovery of a mineralised carbonatite system in the West Arunta is the first of its kind in the region and is a significant finding from our maiden drilling program.
To date, we have only assayed 4m composite samples commencing from 74m depth in this hole, where drilling entered fresh bedrock. With the knowledge that we are in a mineralised carbonatite system, we will assay single metre splits for the entire hole.
The geophysical anomaly at P2 extends for approximately 3km, demonstrating the significant exploration potential of this carbonatite system. Furthermore, there are other untested anomalies within the project area, which could now represent further targets for this style of mineralisation.
Niobium has been identified as a critical mineral by a number of countries and is a key input to future global technology needs, with ferroniobium metal (65% Nb) selling for US$45,000/t. Over the coming months we will collate a comprehensive dataset from the drilling program and plan follow-up exploration activities.”
The drill program comprised seven holes for a total of 1,745 metres. Drilling provided an initial test of two target zones at the Pachpadra Prospect (P1 and P2) and the one target zone at the Sambhar Prospect (Luni).
The results relate to the single reverse circulation (RC) hole drilled to 216m at P2 (PARC003). This hole was co-funded by the Western Australian Department of Mines, Industry Regulation & Safety (DMIRS) under the Exploration Incentive Scheme (EIS).
WA1 Resources floated on the ASX in February with a $0.20 issue price after raising $4.5 million in an initial public offering (IPO). The company is a spin-out of privately held exploration company Tali Resources.
WA1 Resources now has a market capitalisation of $31.36 million.
Write to Adam Orlando at Mining.com.au