Cobra Resources Plc (LSE:COBR) said recent drilling at its Wudinna project in South Australia showed significant potential for resource extensions in "multiple directions".
Intervals up to 25 metres and Total Rare Earth Oxides (TREO) grades of up to 3,568 parts per million (ppm) were intersected.
They will be incorporated in a rare earth mineral resource update once a gold resource upgrade has been completed in the second half of the year, added the junior.
Rupert Verco, chief executive, said: "These drilling results confirm the resource growth potential of our unique rare earth resource and will likely inform a significant resource update, establishing Wudinna as a potential tier-1 rare earth project whose unique proximity to gold mineralisation has the potential to contribute favourably to economics.
"The results also come at a time when the necessity of critical minerals has been further highlighted through the signing of the Climate, Critical Minerals and Clean Energy Transformation Compact between Australia and the US.”