Perpetual Resources rides rare earth wave with Raptor

Perpetual Resources is paddling toward a maiden resource at its Raptor project in Brazil in light of the recent geopolitical developments.

Perpetual believes the current geopolitical developments underscore the importance of the Rapor REE project in Brazil. Pic: Getty Images

• Perpetual is planning the next phase of exploration at Raptor

• Upcoming work aims to advance toward an initial resource

• It will explore new targets and hopes to extend mineralised zones

Special report: Perpetual is planning the next exploration phase including drilling at its Raptor rare earth project in Brazil to leverage strong market fundamentals following China’s restriction of REE exports.

In response to the US tariff increase on Chinese goods, the Middle Kingdom imposed export controls on heavy rare earths including dysprosium, terbium and yttrium, sending a clear message to the West that it cannot rely on the country for stable supply.

China holds a near monopoly over the global processing of rare earths and produces around 61% of the world’s heavy REE supply, essential in high tech industries such as electronics, electric vehicles and defence.

The urgency for alternative supplies has increased and Perpetual Resources (ASX:PEC) believes its Raptor project in Brazil is ideally positioned.

Raptor hosts genuine ionic adsorption clay (IAC) style REE mineralisation, which boasts several advantages including being enriched with a higher proportion of the more valuable magnet REEs like praseodymium, neodymium, terbium and dysprosium.

These deposits are also often easier to explore, drill, mine and process without the need for extensive mining or blasting.

Highlights from metallurgical test work following PEC’s maiden drill program at the Raptor REE project, Caldeira, Minas Gerais. Pic: PEC

Pathway to maiden resource

Raptor is situated in the prolific Caldeira Alkaline Complex in Minas Gerais, Brazil, near Meteoric Resources’ (ASX: MEI) established Caldeira project which hosts a 1.5Bt resource at 2,359 ppm TREO.

So far, metallurgical testing has demonstrated high recoveries of up to 94% for key magnet rare earth elements with initial drilling intersecting high-grade mineralisation, returning a standout 1m interval grading up to 8029ppm TREO.

Other assays returned 5m grading 5591ppm TREO ending in 5533ppm TREO and 12m at 4601ppm TREO from 6m that ended in 3846ppm TREO.

But the company is hoping the next campaign will support its pathway towards delivering a maiden resource, which is possible for as early as late calendar year 2025.

Meaningful contributor to global supply chains

PEC executive chairman Julian Babarczy said the recent geopolitical developments underscore the strategic importance of Raptor.

“With exceptional metallurgical results already demonstrated and strong exploration potential, Raptor is well-positioned to progress towards becoming a meaningful contributor to global critical mineral supply chains,” he said.

During the next phase of exploration, PEC said it is looking to extend known mineralisation zones, explore new targets, and advance towards a maiden JORC resource.

Detailed metallurgical studies and mineralogical characterisation are also planned to be advanced in parallel, upon completion of the forward plan.

Listen: Julian Babarczy joins Barry FitzGerald on the podcast to discuss Perpetual's portfolio and more

This article was developed in collaboration with Perpetual 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.

Originally published as Perpetual Resources rides rare earth wave with Raptor