A TERRITORY mining company has received a "speeding ticket" from the Australian Stock Exchange after a mysterious surge in its share price.

Arafura Resources was asked to explain the 25 per cent rise.

The company said there was nothing odd - the improvement was based merely on confirmation of existing exploration results from the rare earths Nolans Bore project.

Shares climbed when the only discernible news was that Arafura had produced the first of three rare earth oxide products.

The company said the samples would be given to customers to assess for future sales agreements.

Arafura said it was working with Macquarie Capital to determine how to finance a bankable feasibility study.

It abandoned a 1-for-3 rights issue to raise $74 million in November after its share price fell. That left it without the money to go ahead with the feasibility study.

Nolans Bore, 140km north of Alice Springs, is one of the Territory's more glamorous mining projects.

Managing director Steve Ward said last year's drilling program was "a resounding success".

"New results, and those published previously, emphasise the scale and world-class nature of Nolans Bore," he said.

"This strategic resource will form the foundation of Arafura's activities well into the future as the company seeks to become the recognised leading producer of rare earths for users worldwide."

The company ignored pleas from the Territory Government to build a $1 billion processing plant here and will instead develop it at Whyalla in South Australia.