Desert Metals (ASX:DM1) has made an announcement about a key resource.

Following the announcement shares of Desert Metals rose 4.761% to $0.220.

Desert Metals is pleased to announce the identification of a potentially significant new rare earth system on its Dingo Pass Project in the Narryer Terrain in WA, adjacent to the existing 101 million tonne Rare Earth Resource at the Tower Prospect owned by Krakatoa Resources Limited (ASX:KTA) (Krakatoa).

When a mining company releases an update about a key resource it?s exciting times for shareholders.

A lot of capital goes into exploration and when a new deposit is found there?s usually a share price boost.

Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.

When discussing new resource discoveries it?s beneficial to know the difference between greenfield and brown exploration.

Greenfield exploration is looking for mineral deposits in areas that have not been explored.

In brownfield exploration deposits are being sought near or next to an already existing mine.