Power Metal Resources PLC (AIM:POW) said its 82.78% owned subsidiary First Development Resources has identified similar granites at its wholly owned Selta project to the nearby Nolan's Bore deposit.
FDR, which is planning to list on the London capital markets in the third quarter of 2022, outlined "extremely high" stream sediment sample results, which it said could mean the granites over Selta are also enriched in rare-earth elements.
Nolans Bore, which lies around 70km south-east of Selta, is a significant rare-earth element deposit held by Arafura Resources Ltd (ASX:ARU).
Paul Johnson, chief executive of Power Metal, said: "We secured the Selta project with a view, in part, to investigating the rare-earth element potential of Selta and its considerable 1,575km2 licence footprint.
"It's too early to be definitive, though our findings on rare-earth element prospectivity have been encouraging, and today have moved forward considerably.
"This is exciting for us as we make plans to demonstrate the potential of Selta through disciplined and intensive exploration. The work we outline below demonstrates the importance of extremely valuable desktop work where, for very little cost, creative explorers can often access the findings of work undertaken and funded by others historically."
Tristan Pottas, CEO of First Development, said the company is continuing to build its information database.
"To date the in-country team and our technical advisors in the UK have been doing some incredible work that we believe has added considerable value to the Selta Project."