ASX rare earths share Meteoric Resources NL (ASX: MEI) has skyrocketed in 2023, but what could be ahead for the explorer?
The Meteoric Resources share price has surged 281% from 5.3 cents at market close on 30 December to its current share price of 20.2 cents. In today's trade, this ASX rare earths share is sliding 1.46%. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is 0.03% lower so far today.
Let's take a look at the outlook for this ASX rare earths share.
What's ahead?
Meteoric is exploring the Caldeira Rare Earth Element (REE) project in Brazil, a project with 30 licenses.
In an announcement on 1 May, Meteoric advised the project has a maiden mineral resource of 409 million tonnes at 2,626 parts per million (ppm) TREO.
Meteoric described the Caldeira project as the "world's Highest Grade Ionic Adsorption Clay REE Deposit".
Argonaut associate dealer Harrison Massey recommends Meteoric Resources as a buy. He noted the company's global resource estimate and further drilling planned at the Caldeira Project.
Commenting on The Bull, he said:
The company has planned a further 100,000 metres of air core and diamond drilling to target high grade areas within the current resource model. The company is in the process of acquiring further licences surrounding the deposit.
MEI is well capitalised with $A25 million in the bank.
Earlier this month, Meteoric updated the market with a drilling update at the Caldeira Project. Eight of 11 new diamond holes showed a "significant depth extension of the target clay zone beneath the historic auger holes".
Commenting on the news, executive chairman Dr Andrew Tunks said:
Current drilling indicates an increase in the thickness of the target clay zone of up to 45m beneath the historic auger drilling.
Clearly this shows that there remains considerable potential for additional REE mineralisation beneath the historic drilling.
Share price snapshot
The Meteoric Resources share price has rocketed 1920% in the last year.
This ASX rare earths share has a market cap of about $367 million based on the latest share price.
