Arafura Resources up on new discovery

Stocks in Perth-based miner Arafura Resources rose after the company announced exploration drilling had uncovered a substantial new rare earths discovery near its Nolans Bore deposit in the Northern Territory.

Arafura said RC drilling had discovered rare earths mineralisation located around half a kilometre from its Nolans Bore deposit, which is considered to be one of the world's largest undeveloped rare earths deposits.

Rare earths is the term given to fifteen metallic elements which play a key role in the manufacture of high-tech devices, such as energy efficient light-bulbs, hybrid cars, computer components, flat panel displays and magnetic resonance imaging scanners.

At 10:25AM (WST) Arafura’s stock was up 6.8 per cent, at 63 cents.

Arafura managing director Steve Ward said the company was delighted with the drilling results.

“Arafura’s exploration team has successfully pinpointed additional rare earths using targeting concepts developed over a number of years working on one of the one of the world’s premier rare earth resources at Nolans Bore," Mr Ward said in a statement.

“We’re confident our extensive land position around Nolans Bore holds potential for additional rare earths discoveries, and a systematic assessmebnt of these opportunities over time remains an important part of our vision to be the recognised leading producer for users worldwide.”

Mr Ward said an updated JORC resource statement would be published before the end of the year.