Every once in a while, the mining industry serves up a metal discovery that transforms a tiny mineral explorer into the next big deal.

And WA1 Resources Ltd (ASX: WA1) is one company that has seen its share price soar into orbit after unearthing a new mineral deposit.

In July 2022, you could have bought its shares for as little as 13 cents each.

By November of that year, its shares were trading at $3 a pop – that's already a 2,200% return.

But that was just the beginning.

Fast forward to today, and WA1's share price is trading at $16.10 each, marking a spectacular 12,285% increase in just three years.

In contrast, the All Ordinaries Index (ASX: XAO) is up by about 30% during this period.

Hence, if you'd put $1,000 into this ASX mining stock 3 years ago, you'd now have more than a $120,000 return.

What's the deal?

In late 2022, the company discovered the Luni niobium deposit in remote Western Australia with exploration drilling intercepting unusually rich niobium mineralisation.

And the share price took off.

Since then, WA1 has continued to advance the project, undertaking extensive drilling to define a mineral resource estimate.

Management believes the results confirm Luni as the world's most significant niobium discovery in more than 70 years.

What on earth is Niobium?

Niobium is a specialty metal with key traits including heat and corrosion resistance, superior electronic characteristics, as well as strength and weight advantages.

Its primary use is in steel production, where small amounts of the metal substantially increases the strength and decreases the weight of steel products.

However, niobium is also considered a vital metal for the modern world, with growing applications in battery technologies, superconductors, and the aerospace and defence sectors.

Supply is heavily concentrated, with about 80% of global output attributed to the Brazilian mining company CBMM.

This supply risk has led to the European Union, the US, Japan, India, the UK, and Australia classifying niobium as a 'critical metal'.

Hold your horses!

Here's the thing.

Even though the Luni project appears attractive, mining operations and cash flow remain a distant prospect. And forget juicy dividends any time soon.

WA1 must first complete a host of technical studies, economic assessments, environmental evaluations, and navigate a complex permitting process to obtain a mining license.

Even if these hurdles are cleared, the company will still need to raise significant capital to build a mine.

In a nutshell, production is still years away – and that's assuming the studies confirm Luni's financial viability and the relevant mining approval is granted.

Neither outcome is guaranteed, and significant risks remain before any cash comes pouring in.