Lotus Resources (ASX:LOT) share price jumps on rare earths update

The company is ramping up efforts for its rare earths development…
The post Lotus Resources (ASX:LOT) share price jumps on rare earths update appeared first on The Motley Fool Australia. –

The Lotus Resources Ltd (ASX: LOT) share price is advancing today following a positive update at the Milenje Hills Rare Earth Prospect.

During morning trade, the mineral exploration company’s shares broke into uncharted territory, touching the 35-cent mark. However, investors decided to quickly take profit off the table, leading its shares lower.

At the time of writing, the Lotus share price is up 1.59% to 32 cents apiece.

What did Lotus announce?

In a statement to the ASX, Lotus advised it has commenced exploration activities at the Milenje Hills Rare Earth Prospect in Malawi.

The new work program follows the significant discovery of high-grade rare earth oxide (REO) material in February. Lotus noted that from the 22 mineralised samples collected, REOs came up to 16%, with critical REOs up to 3.4%.

The 2021 program will see a number of works undertaken to determine the best path forward for Lotus. These include:

Extension of the geophysical dataset to include additional survey lines over the large anomaly identified in initial work;
Mapping in the broader area to define new mineralised zones;
Additional trenching with an excavator in new zones as well as deepening some of the previous trenches;
Reverse circulation (RC) drilling of up to 2,000 metres to follow up on selected anomalies and mineralised zones;
Mineralogical test work and sizing (expected to commence in Q4 FY21); and
Initial physical beneficiation tests (expected to commence in Q4 FY21).

Lotus managing director Keith Bowes commented on the news possibly driving the Lotus share price:

Whilst the company remains firmly focused on the development and recommencement of production at the Kayelekera Uranium Mine, we believe the Milenje Hills Prospect has the potential to add real value to the company for minimal expenditure.

Clearly, the initial results encountered at Milenje Hills were extremely encouraging, given both the grade and assemblage of rare earth minerals. The current work program will provide us with an enhanced understanding of the overall potential of Milenje Hills, prior to determining the optimal path forward to realise value for shareholders.

About the Lotus share price

Up until late August, Lotus shares were treading mostly sideways over the 12-month period.

However, in the past week, the Lotus share price has accelerated by around 50%. This has led its shares to record a year-to-date gain of 150% for investors.

The post Lotus Resources (ASX:LOT) share price jumps on rare earths update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lotus right now?

Before you consider Lotus, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lotus wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Lotus Resources (ASX:LOT) share price is up 35% in a week
Why the Lotus Resources (ASX:LOT) share price is jumping 18% on Monday

The author Aaron Teboneras has no positions 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!