The Vital Metals Limited [ASX:VML] share price is up 22.22% at time of writing. Shares have spiked from $0.009 to $0.011 after a trading halt.
Vital Metals is an explorer with a portfolio that includes gold, technology metals, base metals and rare earths. Their projects are located in Africa, Germany and Canada.
Why is the VML share price up?
Vital Metals reported ultra-high-grade rare earth oxide results at the North T deposit in their Nechalacho project, of which they own 100%. The Nechalacho project is located in the Northwest Territories of Canada.
Their best results included 2.4m at 38.4% total rare earth oxides (TREO) from 13m; 5.1m at 22.9% TREO from 12m; 5.4m at 19.0% TREO from 2m and 2.4m at 29.6 % TREO from 26m.
The company noted that all intersections were within 30 metres of the surface and estimates high value Nd/Pr content of rare earths at a level of 23.5% TREO.
Vital Metals Managing Director Geoff Atkins said:
‘These results are particularly significant –among the highest grades of any rare earth project in the world. The exceptional REO grades, with up to 8.1% NdPr, are being reported almost at surface, an ideal outcome for our plan to produce a high-grade REO concentrate from Nechalacho.’
What happens next for Vital Metals?
Vital Metals is looking to start works on the site by March 2020 and initiate the ore sorter in the site by July 2020.
The company agreed to acquire Cheetah Resources last year and has since been concentrating on rare earths. Vital Metals expects demand for rare earths to increase from 2020 so the acquisition is a move to increase their competitive advantage.
It’s a strategy that could pay out.
But that doesn’t mean there aren’t opportunities in gold.
In fact, there is a lot of excitement surrounding gold as prices have continued to increase.
Gold expert Jim Rickards is expecting gold prices to hit US$10,000 in the next few years. In a recent exclusive video interview with The Rum Rebellion’s editor Greg Canavan, Jim explains why.
To watch this free interview, click here.
For The Rum Rebellion