The explorer has snapped up 1,760km2 of highly prospective rare earth tenure in Brazil. Pic via Getty Images.
Equinox Resources has just jumped into Brazil’s red hot rare earths scene
Mining
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- The Campo Grande project in northeast Brazil covers a huge area of 1,760km2
- Initial observations show the potential for ionic clay-hosted REE mineralisation
- $1.6m to be raised through a share placement for exploration work
Special Report: Equinox Resources has fired itself into Brazil after applying for the Campo Grande project that covers a whopping 1,760km2 of tenements with the potential to contain ionic clay-hosted REEs.
Equinox Resources (ASX:EQN) conducted a detailed review of its new Campo Grande tenements and found compelling initial evidence for it to be endowed with ionic, clay-hosted rare earth minerals.
Ionic, clay-hosted rare earth deposits are predominantly near-surface (usually to depths of ~10m) and can be extracted on the cheap using pH levels of ~4 – roughly that of wine.
Other ASX juniors including Meteoric Resources (ASX:MEI) and Alvo Minerals (ASX:ALV) are already having major successes in Brazil with their respective Caldeira and Bluebush ionic REE projects.
Large tenure near Brazil’s east coast
The 1,760km2 tenement package is strewn across the rapidly emerging Bahia State REE province where nearby Brazilian Rare Earths – which is about to list on the ASX with a $50m IPO that will start it off with ~$315m market cap – is proving up its 510.3Mt @ 1,513ppm Rocha de Rocha project.
It also plans to undertake a strategic placement to raise $1.6m before expenses, including directors committing $465,000 out of their own pocket.
“The Campo Grande Project represents an outstanding and potentially game-changing growth opportunity for Equinox in the heart of one of the world’s most exciting emerging districts for clay-hosted rare earths discoveries,” EQN CEO Zac Komur says.
“The staking of these highly strategic tenements represents the culmination of an extensive review of potential business development opportunities in Brazil, including time on the ground visiting prospective tenements.
“It’s a great place to do business. We’re looking forward to getting an initial drill program underway early next year and plan to initiate an auger drilling program in early 2024 following the expected granting of the applications.”
After the granting of the project tenements, EQN will conduct a comprehensive project review of Campo Grande.
This includes the review of additional available Rare Earth Element (REE) land for pegging and the finalisation of contractors to commence intensive auger drilling before the end of the year.
In early 2024, it intends to push applications for a preliminary environmental licence and appoint its REE exploration manager.
This article was developed in collaboration with Equinox Resources, 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.
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