Lycaon Resources (ASX:LYN) has received heritage clearance to begin drilling at its Stansmore rare earths project in Western Australia as shares in the Australian explorer rallied 16.6% in early Monday trade.

Further, the mining firm will receive up to AU$180,000 as part of the Western Australian Exploration Incentive Scheme for drilling at Stansmore, following the completion of the project's geophysical modeling, according to a same-day filing to the Australian bourse.