Permitting and Testing Milestones Signal Critical Phase for Perpetual’s Brazil Projects

Lithium Discovery at Isabella Project

Perpetual Resources has confirmed the presence of ultra-high grade spodumene mineralisation at its Isabella Lithium Project in Brazil's Lithium Valley. Final assays from the initial reconnaissance sampling program revealed lithium oxide (Li2O) grades reaching as high as 6.8%, with multiple rock chip samples exceeding 2.5% Li2O. These results validate the presence of three distinct mineralised corridors, each extending over one kilometre, with potential regional extensions up to three kilometres. The project’s proximity to established spodumene producers Atlas Lithium and Sigma Lithium further underscores its strategic importance.

Importantly, Perpetual secured an environmental exemption from the Minas Gerais Environmental Agency (SEMAD), authorising drilling activities for the maiden program scheduled in the first half of fiscal 2025. This regulatory milestone positions the company to rapidly advance exploration and potentially delineate a maiden resource.

Advancing Rare Earths at Raptor Project

Parallel to its lithium efforts, Perpetual has initiated metallurgical test work at the Raptor Rare Earth Element (REE) Project, located within the Caldeira Alkaline Complex in Minas Gerais. The testing, conducted by Australia's ANSTO, an internationally recognised leader in rare earth processing, aims to confirm the project as an Ionic Absorption Clay (IAC) deposit and validate initial recovery rates. Drill results to date have demonstrated high-grade REE mineralisation with favourable neodymium and praseodymium ratios, comparable to the nearby Meteoric Resources deposit, which boasts a JORC resource of 545 million tonnes at 2,561 ppm TREO.

Positive metallurgical outcomes could pave the way for a maiden mineral resource estimate in 2025, marking a significant step forward in Perpetual’s rare earth ambitions.

Strategic Partnerships and Funding

In October 2024, Perpetual signed a non-binding Memorandum of Understanding (MOU) with the State Economic Development Department of Minas Gerais and Invest Minas. This agreement is designed to facilitate the advancement of Perpetual’s lithium, rare earth, and tin projects by providing government support in approvals, licensing, and local supplier engagement. The partnership also aims to integrate Perpetual into the burgeoning battery materials supply chain within the region.

To underpin these initiatives, Perpetual completed a $1 million capital raising through a placement to institutional and sophisticated investors, supplemented by the settlement of a prior placement tranche. The fresh capital will primarily fund exploration and development activities across its Brazilian portfolio.

Exploration Beyond Lithium and Rare Earths

Perpetual’s exploration footprint extends to the Itinga project area, where reconnaissance work has identified high-grade tin mineralisation within coarse cassiterite-bearing pegmatites. Peak assays reached 7.4% tin, accompanied by tantalum, highlighting the potential for multi-commodity development. The association of tin with lithium-bearing pegmatites in the region adds further strategic value to Perpetual’s holdings.

Looking Ahead

With drilling permits secured and metallurgical testing underway, Perpetual Resources is poised to deliver critical data that could transform its Brazilian projects from exploration to development stages. The company is also actively pursuing a potential acquisition to complement its existing portfolio, capitalising on current market conditions to secure high-quality assets at attractive valuations.

As Perpetual advances its lithium and rare earth projects amid supportive government partnerships and fresh capital, the coming quarters will be pivotal in defining its trajectory within the competitive critical minerals sector.