Open-Ended Rare Earth Mineralisation at Down Under Project Signals Exploration Upside

Strong Rare Earths Results from Shallow Drilling

Gold Mountain Limited (ASX: GMN) has released promising results from its recent drilling campaign at the Down Under Rare Earth Elements (REE) Project in Brazil. The company reported assays from 56 shallow auger drill holes at the Irajuba Prospect, confirming high-grade Total Rare Earth Oxide (TREO) mineralisation, with particularly notable concentrations of Magnet Rare Earth Oxides (MREO), critical for manufacturing high-strength electric motor magnets.

Among the highlights, drill hole AD0353 intersected 2 metres at 1,738 ppm TREO, including 1 metre at an impressive 2,689 ppm TREO, with significant neodymium (Nd) and praseodymium (Pr) content. Similarly, AD0215 returned 3 metres at 1,485 ppm TREO, including 1 metre at 2,232 ppm TREO. Overall, 28 drill holes exceeded 400 ppm TREO, with MREO averaging around 64% of the TREO content, underscoring the quality of the mineralisation.

Geological Context and Mineralisation Potential

The drilling primarily targeted the upper saprolite zone, where most REE mineralisation is expected. The results indicate that mineralisation remains open at depth, as many holes only intersected the top of the mineralised zone. This open-ended nature presents a compelling opportunity for further exploration and resource definition.

Gold Mountain’s exploration strategy includes ongoing deeper auger drilling throughout 2025, with plans to initiate resource-focused sonic drilling in areas showing significant mineralisation. The company’s prospectivity analysis, incorporating TREO, Chemical Index of Alteration (CIA), and anomalies in niobium, scandium, and uranium, has identified potential hard rock mineralisation zones as prime targets for follow-up drilling.

Environmental and Regulatory Considerations

The Down Under Project covers 136 tenements in eastern Bahia, Brazil, with Gold Mountain holding 100% ownership of 129 granted tenements and 7 applications. Some tenements overlap with a State Nature Reserve where mining is permitted subject to environmental licensing and impact assessments. The company acknowledges the need to balance economic development with environmental preservation, highlighting the importance of regulatory compliance in advancing the project.

Outlook and Strategic Positioning

Executive Director David Evans expressed enthusiasm about the results, noting the exceptional grades and the open nature of the mineralisation. He emphasized that the identification of initial resource drilling areas, combined with ongoing exploration, positions Gold Mountain well to advance the Down Under Project towards a significant rare earth discovery.

With the global demand for rare earth elements, particularly magnet metals like neodymium and praseodymium, surging due to the electric vehicle and renewable energy sectors, Gold Mountain’s progress in Brazil places it in a strategically advantageous position. The company’s diversified portfolio, including lithium and copper projects in Brazil and Papua New Guinea, further supports its growth potential.