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Magnetite Mines (ASX:MGT) has soared as much as +150% in the Tuesday morning session after the Australian company reported finding evidence of REE mineralisation on-site at its Ironback Hill project.
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Magnetite is the latest ASX-listed junior to soar on the momentum that REEs have generated like it’s the early 2020s after the United States government recently bought a stake in U.S.-based explorer MP Materials.
At 11am Tuesday, there’d been near-exactly $1M worth of MGT shares exchanging hands intraday versus a 4w average volume of 6.05M, explaining the triple-digit gains.
Still, whether optimism lasts is another question. REE mineralisation was displayed in parts-per-million (ppm), with the highest reported reading only 1,153ppm.
REEs are also hosted in clay, which some more savvy explorer watchers are known to stay away from. And another key point: “The mineralisation was detected by re-assaying archived drill samples from previous iron ore drilling programs carried out by Magnetite Mines,” MGT wrote on Tuesday.
Still, the Aussie company will now embark on follow-up work classified as “low-cost,” presumably surface sample work, to get a better understanding of what geos may or may not be looking at.
Either way, today’s share price movement is fairly clear evidence that the market remains risk-on for REEs broadly.
MGT last traded at 18cps on Tuesday morning.
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