If you haven’t heard the name ‘Sagon’ before, we don’t blame you.
This resource explorer minnow only committed to the name in August. Prior to that they were known as Clancy Exploration.
Today though, Sagon Resources Ltd [ASX:SG1] has firmly stamped their authority. The Sagon Resources share price is up 27% at time of writing after management divulged a timely discovery…
SG1 Committed to rare earths
Just over three weeks ago, Sagon committed itself to a new rare earths strategy. They decided to upgrade their partial ownership of the Cummins Range project to outright ownership.
This WA-based project isn’t looking for gold though. No, they made a gamble on the site in a bid to tap into the budding rare earths resurgence.
Now it looks as though that gamble has paid off.
Sagon’s maiden dig at Cummins has delivered a stellar result. The data suggests that this mine could have the fourth highest rare earths grades in Australia.
Not bad for a company that only pivoted into the sector weeks ago…
They now have the potential to become a major rare earths miners and/or producer. Granted they still have a long road ahead of them before that happens.
The good news though, is that this may just be the tip of the iceberg. Further drilling could potentially uncover even more of the lucrative minerals.
As Sagon Executive Director, Jeremy Robinson, comments:
‘We are pleased to commence with a significant Maiden JORC 2012 Resource which benchmarked against peers offers Sagon an exciting platform to move forward with. The Cummins Range ore-body is open along strike and at a depth and we believe we can materially expand the Resource and look forward to the upcoming drilling program.’
It would seem the ASX has a new rare earths contender.
Hard work still ahead
For investors it’s a great start. Hopefully just the beginning of a trend.
It is also indicative of the current rare earths boom we’re seeing of late. After the boom and bust of the past, these unique minerals are making a steady comeback. And with China’s current stranglehold over the supply chain, the need for new producers is dire.
For more about this ‘Rare Earth Boom 2.0’, check out our report. We’ve done a deep dive into what’s going on in the market and how investors could profit. Get your copy, for free, right here.
Meanwhile for Sagon, it’s back to the grind. Today is cause for celebration, but the hard work is still ahead of them.
For Money Morning