Axel REE has engaged SRK Consulting and ANSTO to initiate a maiden Mineral Resource Estimate and metallurgical testing for rare earth elements and gallium at its flagship Caladão Project in Brazil, marking a pivotal step in developing one of the world’s few combined REE and gallium resources.
- SRK Consulting engaged for JORC 2012 Inferred Mineral Resource Estimate at Caladão
- ANSTO to conduct metallurgical testing optimizing REE and gallium extraction
- Initial MRE to cover 35km² high-grade mineralised zone (Area A), with plans to extend to Area B
- Caladão project potentially one of the world’s only combined REE and gallium resources
- Gallium’s strategic value heightened by China’s export ban, currently priced over $250,000 per tonne
Strategic Resource Development at Caladão
Axel REE Limited (ASX: AXL) has taken a significant stride forward in the development of its Caladão Project in Minas Gerais, Brazil, by commissioning SRK Consulting to deliver a maiden Mineral Resource Estimate (MRE) and engaging the Australian Nuclear Science and Technology Organisation (ANSTO) to undertake metallurgical testing. This dual approach aims to underpin the project’s potential as a critical supplier of rare earth elements (REE) and gallium, two metals increasingly vital to modern technologies and global supply chains.
The Caladão Project stands out due to its rare combination of REE and gallium mineralisation. With only 15% of the 400km² project area drilled and confirmed mineralised, the initial MRE will focus on a 35km² high-grade zone known as Area A, with plans to extend to an additional 25km² in Area B. This phased approach reflects a methodical strategy to build resource confidence and scale, leveraging SRK’s global expertise in mineral resource estimation under the JORC 2012 Code.
Metallurgical Testing to Unlock Extraction Potential
ANSTO’s involvement brings decades of rare earth process development experience, including ionic adsorption clay deposits similar to those at Caladão. Their testing program will focus on optimizing leach recoveries, impurity removal, and precipitation processes for both REE and gallium. This is critical given the complex mineralogy and the need to manage impurities such as aluminium and iron, as well as potential radioactivity concerns common in rare earth processing.
Initial diagnostic tests will assess the extractability of REE and gallium under ionic clay conditions, with subsequent phases aimed at refining processing flowsheets. ANSTO’s track record in delivering high-purity rare earth concentrates and their unique modelling capabilities position Axel REE well to advance towards scalable and economically viable extraction methods.
Market Context and Strategic Importance
The timing of these developments is notable against the backdrop of China’s recent ban on gallium exports, which has sharply increased the metal’s strategic value to over US$250,000 per tonne. Gallium’s critical role in semiconductors, LEDs, and other high-tech applications underscores the importance of diversifying supply sources. Caladão’s potential to become one of the few global sources of combined REE and gallium resources could position Axel REE as a key player in this evolving market.
Managing Director Dr. Fernando Tallarico highlighted the project’s district-scale potential and the significance of engaging world-class partners to advance the resource definition and processing understanding. The MRE and metallurgical testing will not only provide technical validation but also guide targeted infill and step-out drilling to expand and upgrade the resource base.
Looking Ahead
As Axel REE progresses through these foundational stages, the outcomes of the MRE and metallurgical testing will be critical milestones. They will inform the next phases of exploration, feasibility studies, and ultimately, project development. Given the strategic importance of REE and gallium in the global supply chain, the Caladão Project’s advancement will be closely watched by investors and industry stakeholders alike.
Bottom Line?
Caladão’s maiden resource and metallurgical results will be a key market catalyst for Axel REE’s rare earth and gallium ambitions.
Questions in the middle?
- What will the initial JORC Mineral Resource Estimate reveal about the scale and grade of Caladão’s REE and gallium deposits?
- How effective will ANSTO’s metallurgical testing be in optimizing extraction and impurity removal for commercial viability?
- What are the timelines and capital requirements for advancing from resource definition to development at Caladão?