Summit eyes rich REE and niobium potential at Mundo Novo in Brazil

Summit Minerals carrying out due diligence prior to acquiring the advanced Mundo Novo project
Project in central Brazil has proven REE and niobium mineralisation from drilling and surface sampling
Mundo Novo will add a drill-ready project to company’s existing suite of Brazilian assets

Special Report: The expected long-term demand for niobium and rare earths has prompted Summit Minerals to execute an agreement to acquire the advanced Mundo Novo project in central Brazil.

The project has proven ionic adsorption clay-hosted REE, niobium and phosphate-rich oxide mineralisation from surface with multiple zones offering multi-commodity exposure.

Limited shallow drilling to date has returned assays from surface such as 51m grading 10,000 parts per million total rare earth oxides, 15m at 12,200ppm TREO and 20m at 12,100ppm TREO.

Many holes have ended in mineralisation and remain open.

Summit Minerals (ASX:SUM) notes that its preliminary studies indicate that Mundo Novo is an IAC-style REE deposit similar to Meteoric Resources’ (ASX:MEI) Poços de Caldas alkaline cabonatite complex.

Drilling has also intersected high-grade niobium with an assay of 9m at 1.23% Nb2O5 from 2m including 4m at 1.62% Nb2O5.

Its niobium potential mirrors that of the Morro Preto deposit in the Catalão Complex.

Catalão, which is owned by CMOC Brazil, also hosts the world’s second-largest niobium mine.

Substantial potential

“We are thrilled with the potential acquisition of the Mundo Novo carbonatite project, a key investment in the niobium and rare earth element sector,” managing director Gower He said.

“This investment is driven by strong long-term demand linked to the global clean energy transition and advancements in decarbonisation technologies.

“Mundo Novo has shown substantial potential for niobium, rare earth element, and phosphate mineralisation, as evidenced by past drilling results that revealed considerable intercept widths.

“The project’s geological potential aligns perfectly with our strategy to develop high-quality projects in Brazil that supply critical metals for the electric vehicle (EV) market and other clean energy applications.

“Although the vendors had multiple suitors, they chose to partner with Summit. The company was presented with this opportunity as recognition of its fast-paced and committed approach to niobium exploration in Brazil.

“This project represents an outstanding addition to the company; upon completion, the company will have added a drill-ready niobium carbonatite project to its existing suite of Brazilian assets.”

Mundo Novo project

The Mundo Novo alkaline complex lies in the northern section of the Goiás alkaline province, a region characterised by Late Cretaceous alkaline magmatism along the northern margin of the Paraná Basin.

MNAC has ring-like characteristics, positive topography, and a broad fenite aureole. Its distinctive zoning patterns reflect magmatic differentiation, hydrothermal processes, and structural controls, which are all crucial for understanding the intrusion’s mineralisation and economic potential.

Niobium is concentrated in the central zones of the calcite-rich carbonatites, which themselves form the central core of the intrusion, while phosphates – dominated by apatite – span the central to intermediate zones.

Light REEs are enriched near the core while heavy REEs dominate the periphery.

Thanks to its similarities with the Morro Preto deposit, initial exploration had focused on evaluating its phosphate potential for fertilisers.

However, this work revealed significant geochemical anomalies of phosphorus, REE, and niobium, leading to the expansion of evaluation work.

Drilling to date has been primarily vertical and shallow, returning thick intersections of REE and niobium with significant potential for expansion of the latter at depth.

Next steps

SUM will now carry out extensive legal and geological due diligence over the project before going to its shareholders for approval to acquire Mundo Novo.

This article was developed in collaboration with Summit Minerals, 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.