GeoMegA Resources (CVE:GMA) announced Wednesday the latest results from its phase one diamond drill program at the Montviel property in Quebec, extending mineralization in two directions, prompting a 24% boost in share price.
The company said results from drill holes MVL-11-09 and MVL-11-10 confirmed that the mineralized zone of rare earth elements extends 200 metres further west along strike, and an additional 175 metres south.
Mineralization is now defined over an area of 500 metres along strike, 400 metres in width and down to a depth of 450 metres.
Geomega's shares rose more than 24% near market close on Wednesday, to trade at $3.35 as of 3:40pm EST.
Hole MVL-11-10 revealed 1.41% total rare earth oxides (TREO) over the entire 544.6 metre core length, while MVL-11-09 intersected 1.51% TREO over the first 127.55 metres of core.
Concentrations of neodymium oxide, at 0.247% and 0.216%, respectively, on the intersections from these holes, remain the deposit's star element, Geomega said.
"These latest results confirm that it is one of the world's most significant known deposits of neodymium that can be developed quickly given the excellent local infrastructure such as road access, nearby hydroelectric services and rail," said president Simon Britt.
Indeed, rare earth elements, especially neodymium, dysprosium, europium and yttrium, are incredibly sought-after as they are critical for many green energy and high tech applications, from electric vehicles, wind turbines and LED lighting to cell phones, fibre optics and lasers.
"This is a major discovery for Quebec's economy. GeoMegA is a Quebec company that sees the value of exploiting and processing this resource here in Quebec," added Britt.
Separately, the company also announced that it has appointed Jacquelin Gauthier as vice president of exploration. He has served as exploration manager for major corporations such as Kinross Gold Corp, Bema Gold Corp, Cambior and Noranda Exploration.