Axel REE flags more high-grade gallium in Brazil

Axel REE has reported more gallium results from the Caladão project in Brazil as it looks to release a maiden resource estimate.

AXL is waving the flag high for the potential of its Caladão project, which could host a substantial REE and gallium resource. Pic: Getty Images.

• AXL reports consistent high-grade gallium at Brazilian project

• Gallium critical component in semiconductor chips

• Maiden gallium and REE resource is expected in July

 

Special Report: Axel REE says assays from auger drilling at its Caladão project in Brazil have delivered strong gallium and rare earths results.

The latest results from Area B highlight the emergence of Axel REE’s (ASX:AXL) Caladão as a key non-Chinese gallium project, with Area B presenting a stand-out target to define a potentially large high-grade gallium resource.

They also demonstrate the effectiveness of auger drilling in delineating critical mineral resources at shallow depths. Notable intercepts include:

• 9m at 86g/t Ga2O3 from surface including 4m at 95g/t Ga2O3 from surface
• 15m at 83g/t Ga2O3 from surface including 2m at 106g/t Ga2O3 from 1m
• 5m at 79/t Ga2O3 from surface including 3m at 85g/t Ga2O3 from surface
• 19m at 74g/t Ga2O3 from surface including 5m at 85g/t Ga2O3 from surface; and
• 10m at 74g/t Ga2O3 from surface including 3m at 81g/t Ga2O3 from surface.

Rare earths results included:

• 5m at 4801ppm TREO (20% MREO) from 15m including 1m at 7523ppm TREO (20% MREO); and
• 5m at 3087ppm TREO (19% MREO) from 9m including 1m at 4771ppm TREO (22% MREO).

Axel says the correlation between elevated gallium values overlying the rare earth zones with enhanced TREO grades adds strategic value to the Caladão project’s economics.

The project sits in the prolific Minas Gerais region of Brazil, home to a swathe of ionic clay rare earths deposits.

In retaliation to Trump tariffs and a trade war stretching back years before them, China has made a hobby of placing export restrictions on medium and heavy rare earth elements and critical minerals like gallium, a key component in semiconductor chips.

Sizable maiden resource pending

More assays are expected in the near term, with the company confident the results will form the foundation of a maiden rare earths and gallium resource estimate from Area B.

That resource will be combined with a near term Area A resource estimate – which AXL believes will demonstrate the scale and strategic potential of the broader Caladão system.

“With auger drilling ongoing at Area B, it’s encouraging to see confirmation of broad, shallow zones of gallium and rare earth, consistent with results from Area A,” non-executive chairman Paul Dickson said.

“These assay results are significant for Axel as we progress to defining a sizeable, near-surface critical mineral resource.

“The Caladão project continues to exceed expectations, with strong evidence that weathered profile in Area B is enriched with gallium and rare earths, in line with our exploration model.

“The team’s technical work is setting a strong foundation for resource delineation and future development opportunities.

“These results strengthen our confidence in the broader Caladão system and we look forward to sharing further updates as the program progresses.”

This article was developed in collaboration with 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.

Originally published as Axel REE flags more high-grade gallium in Brazil