Shares in Greenland Minerals and Energy jumped after it became the first company to receive approval to evaluate its project in Greenland that includes uranium.
The company's shares closed up 22 cents, or 26.35 per cent, at $1.055.
Kvanefjeld, near the southern tip of Greenland, is believed to contain one of the world's largest resources of rare earth elements and also some uranium and zinc.
The Perth-based company's shares went on a rollercoaster ride in September when the Greenland government said it retained a longstanding ban on uranium mining, but days later amended the terms for exploration licenses to include radioactive elements.
The company said it would close out the current pre-feasibility study for Kvanefjeld with a final report slated for release in the March quarter next year.
It will then start a definitive feasibility study that is expected to be complete in the latter half of calendar 2012.
"This project has captured the Greenlandic attention due to its scale and its commodity mix," managing director Roderick McIllree said in a statement.
"Kvanefjeld can now enter the next phase in the path to development."