Drilling at EQN’s Rio Negro prospect delivers grab bag of high-grade rare earths, gallium and bauxite

Drilling at Equinox’s Rio Negro prospect in Brazil has returned high-grade rare earths, gallium and bauxite.

The Rio Negro prospect at EQN’s Campo Grande rare earth project in Brazil makes up ~1% of the 1800km2 landholding. Pic: Getty Images

• RC drilling results from the Rio Negro prospect within EQN’s Campo Grande project in Brazil have returned standout TREO grades

• Drilling also struck high-grade gallium and bauxite, with gallium hits exceeding global averages

• Gallium prices are rising, and supply is tightening due to China's restrictions

Special Report: Drilling results from the Rio Negro prospect within Equinox Resources’ broader Campo Grande project have returned standout rare earth grades, while also confirming the multi-commodity potential of the Brazilian project.

The company completed 14 RC drill holes at the prospect following the initial scout drilling campaign that delivered success with total rare earth oxide concentrations reaching up to 80%.

Leading the latest results was a grade of 7890ppm TREO at a depth of 36-38m (CG_RC24_005), supported by elevated phosphorus pentoxide levels of up to 3.09%, suggesting that monazite is the primary REE-hosting mineral.

Rock chip tray from Hole CG_RC24_005 at the Rio Negro target, showing samples from 0m to 60m depth. Pic: EQN

Other key results from drilling include:

• 5m at 6585ppm TREO (22% MREO) from 33 m (CG_RC24_005), including 2m at 7890ppm TREO from 36m
• 6m at 2067ppm TREO (22% MREO) from 33m (CG_RC24_007)
• 7m at 1691ppm TREO (21% MREO) from 8m (CG_RC24_008)
• 10m at 1529ppm TREO (24% MREO) from 9m (CG_RC24_014); and
• 17m at 1522ppm TREO (22% MREO) from 5m (CG_RC24_015).

Equinox Resources (ASX:EQN) managing director Zac Komur emphasised the potential of Rio Negro, despite it covering only a small portion of the broader Campo Grande project, pointing to the high grades also identified of supply constrained metals gallium and bauxite.

“The Rio Negro Prospect is proving to be an exciting and important part of our Campo Grande Rare Earth Project,” he said.

“The standout TREO grades, including 7890ppm supported by monazite as the primary REE-hosting mineral, showcase the unique geological opportunity here.

“What’s just as exciting is the high-grade gallium and bauxite we’ve intersected in the southeast, with gallium grades exceeding global averages, a significant win for the project.

“And let’s not forget, Rio Negro represents only 1% of our broader 1800km2 landholding at Campo Grande. There is untapped potential yet to be uncovered.”

Multi-commodity potential

While the central-east area of the prospect contains high-grade REEs, the southeast corner returned high-grade gallium and bauxite.

The gallium intercepts exceed global averages, while peak bauxite concentrations reached 42.1% within 20m of 34.1% Al₂O₃ (CG_AD24_074).

Key gallium intercepts:

• 17m at 90.2g/t Ga₂O₃ (CG_AD24_011) from surface, including 1.0m at 102.2g/t from 3m
• 20m at 73.8g/t Ga₂O₃ (CG_AD24_006) from surface, including 1.0m at 106.5g/t from 3m
• 20m at 70.4g/t Ga₂O₃ (CG_AD24_057) from surface, including 1.0m at 87.1g/t from 18m
• 20m at 70.4 g/t Ga₂O₃ (CG_AD24_026A) from surface, including 1.0m at 82.8g/t from 15m; and
• 17.5m at 69.3 g/t Ga₂O₃ (CG_AD24_085B) from surface, including 2.0m at 91.5g/t from 6m.

It’s timely with global gallium prices rising and supply tightening due to China's export restrictions.

Drill bits keep spinning

A total of 2457.95m have been drilled at Rio Negro, including 92 auger and 17 RC holes, with drilling ongoing across Campo Grande.

The next phase will focus on mapping the ultra-high-grade monazite-rich zones within the mineralised sill using angled drilling to optimise depth and orientation.

The company is also awaiting assays from the Central Block and Northern Block, which are expected in late Jan to early Feb.

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.