** Shares of Lycaon Resources rise as much as 25% to A$0.3, their biggest intraday percentage gain since May 3

** Stock hits its highest level since July 25

** The diversified explorer says it got heritage clearance to start drilling at its Stansmore Niobium-Rare Earth Elements Project in Western Australia

** About 597,000 shares change hands, compared with the 30-day average volume of around 89,000

** Stock up 35% YTD, including session's move

(Reporting by Aaditya Govind Rao in Bengaluru)

((Aaditya.govindrao@thomsonreuters.com;))