WA1 Resources (ASX:WA1) has seen its shares jump nearly 1.5% to $17.87 after it announced its latest niobium assay results on Friday.
High-grade intercepts have led company geotechs to state that its Luni target of interest has now expanded eastward with intercepts in that direction suggesting mineralisation stretches outwards.
The company has been of strong interest on investors’ radars partially driven by the critical minerals and REE thematic, and partially driven by performance – WA1 shares are up an impressive 890% YoY.
This time last year, WA1 shares were less than $3/sh – underscoring strong interest in WA1 across the last twelve months.
The company flagged the following drill results on Friday:
- 3m @ 4% niobium from 28m depth
- 73m @ 0.8% niobium from 57m depth, including:
- 7m @ 3.6% niobium from 58m depth
- 67m @ 0.8% niobium from 33m depth, incliuding:
- 16m @ 2.0% niobium from 38m depth
- 39m @ 1.5% niobium from 39m depth, including:
- 15m @ 3.3% niobium from 30m depth
The company also highlighted niobium is not the only thing on-site. One drillhole hit REE mineralisation with total oxides at 10% across a 7m section.
“Today’s results are the final 2023 extensional drilling intersections and they suggest a meaningful envelope of mineralisation may continue in the eastern and southeastern area of Luni,” WA1 chief Paul Savich said on Friday.
“There are limited remaining assays to be reported from 100m infill drilling completed during 2023, followed by the estimation of an initial Mineral Resource for Luni.
“[The drillhole that intercepted REEs] will require follow-up to better understand the potential for a meaningful extent to this tenor of mineralisation, and is a reminder of how much we are yet to learn about Luni.”
The company also said two drill rigs remain active on-site at Luni with a view towards metwork in the coming weeks and months.
The company’s initial MRE JORC estimate is set for delivery within Q2 of CY2024.
Niobium is typically used to strengthen steel products, especially in aerospace. Ferroniobium is the dominant product type, reflecting 90% of niobium sales in 2022, according to WA1.
In the background, niobium pentoxide reflects a “key growth market” for the company, with that product able to reduce charge times required for lithium-ion batteries.
Global supply is predominantly sourced in Brazil at this current time.
WA1 last traded at $17.87.