The All Ordinaries Index (ASX: XAO) is up 0.4% today, with one ASX All Ords mining share doing a lot of the heavy lifting.
The rocketing company in question is Meteoric Resources (ASX: MEI).
Shares in the ASX rare earths miner closed yesterday trading for 6.9 cents. In late morning trade on Tuesday, shares are changing hands for 9.2 cents apiece, up a blistering 33.3%. This puts the stock back in the green for 2025.
Investors have been piling into the ASX All Ords mining share following its announcement of the maiden Mineral Resource Estimate (MRE) for its Barra do Pacu project. Barra do Pacu is part of Meteoric Resources' 100%-owned Caldeira Rare Earth Element Ionic Clay Project, located in Brazil.
Meteoric acquired the Caldeira project in December 2022.
Rare earth elements are crucial for the global energy transition, as well as most high-end technology applications.
The announcement comes at an opportune time, with Meteoric Resources noting that on 4 April, China announced new export controls on "certain medium and heavy rare earth-related items" in the nation's intensifying trade dispute with the United States.
The rare earths miner said that "industry leading grades, highlights the significance of the Caldeira Project and its capacity to provide an alternative supply chain for global rare earth markets".
What MRE did the ASX All Ords mining share report?
Meteoric Resources reported that its maiden MRE added 389 million tonnes at 2,204 part per million (ppm) total rare earth oxides (TREO).
The ASX All Ords mining share said that the global Caldeira MRE grew to 1.5 billion tonnes at 2,359 ppm TREO. This updated MRE represents a 35% increase in tonnes reported in the company's 12 March update.
Also likely piquing investor interest, the miner's global Measured and Indicated MRE grew to 666 million tonnes at 2,685 ppm TREO, which reportedly includes 22.5% magnet rare earth oxides (MREO): neodymium, praseodymium, dysprosium, and terbium.
What did management say?
Commenting on the strong results sending the ASX All Ords mining share rocketing today, Meteoric managing director Stuart Gale said, "Barra do Pacu is immediately south of the Capao do Mel resource and with this update we can now include it in the upcoming Pre-Feasibility Study."
Gale added:
This resource estimate effectively doubles the Indicated Resource located within 1,000 metres of the proposed processing plant site. The combined Measured and Indicated Resource for Capao do Mel and Barra do Pacu is in excess of 150 million tonnes at greater than 3,000ppm TREO including greater than 20% MREO.
This represents an obvious starter area for future mining at the Caldeira Project to drive strong economic returns and a rapid capital payback.
The post Why is this ASX All Ords mining share soaring 33% on Tuesday? appeared first on The Motley Fool Australia.
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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