Axel REE’s Breakthrough REE and Gallium Finds Could Redefine Project Economics
Axel REE Limited reports a breakthrough in its Brazilian exploration with record high-grade rare earth and gallium assays at the Caladão Project, expanding the mineralised area significantly and securing funding to advance resource definition.
- Record assay of 28,321ppm TREO and 124g/t Ga2O3 at Caladão Project
- Mineralised area at Caladão expands 68% to 60km²
- High-grade, thick near-surface REE and gallium intercepts confirmed
- Caldás Project shows consistent ionic adsorption clay REE mineralisation
- Company holds $10.7 million cash to fund ongoing exploration
A Landmark Quarter for Axel REE
Axel REE Limited (ASX: AXL) has delivered a compelling update for the December 2024 quarter, underscoring its emergence as a significant player in the rare earth elements (REE) sector. The company’s flagship Caladão Project in Minas Gerais, Brazil, has revealed record assay results, including a remarkable 28,321ppm total rare earth oxide (TREO) and 124g/t gallium oxide (Ga2O3), positioning it as a potential district-scale discovery.
These results come from an aggressive drilling campaign that has now covered a 60km² area, an expansion of 68% from previous drilling extents, highlighting the lateral persistence and thickness of mineralisation. The high-grade intercepts, some starting near surface, include thick zones of REE and gallium mineralisation, with magnetic rare earth oxides (MREO) comprising over 40% of TREO in some samples, a critical factor for economic extraction.
Caladão: A Unique REE + Gallium Deposit
Caladão’s mineralisation is distinctive for its combination of rare earth elements and gallium, the latter being a critical mineral recently subjected to export restrictions by China. Gallium’s presence at surface in the lateritic soil profile offers a valuable potential credit to the project economics, with intercepts such as 45m @ 50g/t Ga2O3 indicating significant vertical continuity.
The company’s drilling program, comprising nearly 4,000 metres across 233 holes, has consistently returned high-grade results, including standout intercepts like 12.4m @ 5,478ppm TREO and 1m @ 19,493ppm TREO. These findings support the ongoing progression toward a maiden JORC resource estimate, a critical milestone for advancing the project’s valuation and development potential.
Complementary Progress at Caldas and Itiquira
Alongside Caladão, Axel REE’s Caldas Project within the Poços de Caldas Alkaline Complex continues to demonstrate thick, consistent ionic adsorption clay-hosted REE mineralisation. Auger drilling results average 3,229ppm TREO with no assays below the 1,000ppm cutoff, reinforcing the project’s potential to host a significant resource. The proximity to other ASX-listed REE discoveries adds strategic value to Axel’s tenure.
Meanwhile, reconnaissance at the Itiquira Project in Mato Grosso has identified challenges due to thick sediment cover and extreme weathering, limiting surface results. The company is considering geophysical surveys to assess subsurface potential but remains focused on advancing Caladão and Caldas in the near term.
Strong Financial Position and Shareholder Incentives
Axel REE enters 2025 well-funded, with $10.7 million in cash reserves to accelerate exploration and resource definition activities. The company also initiated a bonus options offer, providing shareholders with one option for every two shares held, reflecting confidence in its growth trajectory and commitment to shareholder value.
Exploration expenditure for the quarter was $394,000, with the company maintaining disciplined capital management. Payments to related parties, including directors and consultants, were disclosed transparently in line with ASX requirements.
Looking Ahead
With drilling ongoing and approximately 1,000 assay samples pending, Axel REE’s near-term catalysts include the release of a maiden resource estimate at Caladão and further assay results from Caldas. The combination of high-grade REE and gallium mineralisation in a geopolitically stable jurisdiction positions Axel as a compelling story in the critical minerals space.
Bottom Line?
Axel REE’s record-breaking assays and expanded mineralised footprint set the stage for a pivotal resource definition phase that could reshape its market standing.
Questions in the middle?
- How will the maiden JORC resource estimate at Caladão influence Axel REE’s valuation and financing options?
- What is the potential economic impact of the gallium credit on the overall project feasibility?
- How might geopolitical shifts, such as China’s gallium export ban, affect market demand and pricing for Axel’s discoveries?