Axel REE reinforces potential of Caladão to be globally significant gallium and REE source

• Axel REE expands footprint at Caladão through auger drilling
• Results reinforce the asset’s potential as an emerging significant source of critical rare earths and gallium
• Resource estimates underway at Area A and B

Special report: New gallium and rare earth zones have been discovered at Axel REE’s Caladão asset in Brazil’s Lithium Valley, expanding the project’s footprint as the explorer doubles down on resource growth.

Recent auger drilling at Area C and in the northeastern and eastern extensions of Area B has confirmed significant gallium enrichment and REE mineralisation within the weathering profile.

Area C returned shallow surface gallium intercepts including 8m at 70g/t Ga while step-out drilling expanded Area B mineralisation with multiple, thick hits including 17m at 69g/t Ga and 7m at 72g/t Ga – all from surface.

Surface rare earth results were also returned at Area B, including broad total rare earth oxide (TREO) intervals with strong magnetic proportions including 10m at 2,311ppm TREO (30% MREO) from 4m and 10m at 1,821ppm TREO (33% MREO) from 4m.

Axel REE (ASX:AXL) says the extended zones add an additional 23.4km2 of mineralisation which cover a 115.6km2 mineralised zone and potentially expand the 100Mt gallium inferred resource from Area A.

District-scale potential

AXL non-exec chairman Paul Dickson said the latest results continued to demonstrate Caladão’s district-scale potential.

“Area C is a new surface gallium discovery, complementing the discrete gallium horizon already defined at Area A and the growing extents at Area B,” he said.

“Consistent thick, high-grade gallium intercepts, alongside broad TREO intervals with strong magnetic REE content, reinforce Caladão’s potential as a unique district-scale system.

“We have systematically delivered a maiden 100Mt gallium resource and have built a comprehensive dataset across Areas A and B,” Dickson added.

“Now we have added Area C, with only ~25% of the mineralised footprint drilled so far.”

Listen: AXL chairman Paul Dickson joins Barry FitzGerald on the Explorers Podcast

Resource estimates and metallurgical test work on the cards

Dickson said the company’s focus was two-fold – resource growth, particularly on the maiden gallium resource estimate for Area B and the near-term REE resource estimate for Area A, and metallurgy to enable low-cost processing.

Ongoing testwork is underway at Caladão to develop a low-cost recovery process for both rare earths and gallium at the site.

Caladão covers 430km2 of ground in the Tier 1 jurisdiction of Brazil’s Lithium Valley, with only 25% of mineralised area drilled to date for both critical minerals.

This article was developed in collaboration Axel REE, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.