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Locksley Resources (ASX:LKY) has jumped +10% to 30.5cps in early arvo Thursday trades after confirming it’s kicked off its drill campaign at its California-based El Campo project, prospective for rare earth elements (REEs). While rigs are still being mobilised, the company now has all approvals it needs for the program, which clearly piqued market interest.
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The maiden drill run at El Campo will see the rigs start spinning less than 2km away from the USA’s Mountain Pass mine, headed by MP Materials, in which Gina Rinehart recently became the largest shareholder and which received price floor support from Washington earlier this year.
A diamond drill rig will sink five holes on-site as part of the initial maiden program testing what are believed to be down-dip extensions of areas on-site where surface sampling has reflected grades of over 12% total rare earth oxides (TREO). The fact DAM is underpinned by shear zone geology has added to the company’s – and shareholder’s – optimism.
Within El Campo is Locksley’s Desert Antimony Mine (DAM), a historical asset which will be the foremost focus for drill teams with the site being prepared to that end this week including earthworks.
While DAM is currently treated as a prospect, it’s part of proven historical antimony mineralisation on-site per USGS data, though, that’s too old now to satisfy Australia’s robust JORC legislation.
“By commencing operations at El Campo and finalising the bond for DAM, we have effectively opened two fronts for exploration. To maximise efficiency and reduce mobilisation costs, the Company has structured a sequential drilling campaign,” LKY CEO Kerrie Matthews said.
“The diamond drill rig at El Campo will mobilise directly to the DAM prospect upon completion of the El Campo REE program. This ensures a continuous flow of exploration news and data through Q1 and Q 2, 2026 , testing the high- grade potential of both strategic commodities.”
LKY last traded at 30.5cps.
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