Brazilian Rare Earths Unveils Record Grades and New Gallium Discovery

Record Exploration Success at Monte Alto

Brazilian Rare Earths Limited (ASX:BRE) has delivered a standout quarterly report for the period ending 31 March 2025, highlighted by record-breaking exploration results at its flagship Monte Alto project. The company reported ultra-high-grade rare earth element (REE) mineralisation with total rare earth oxides (TREO) grades reaching up to 45.7%, the highest recorded at Monte Alto to date. Notably, neodymium and praseodymium (NdPr) grades peaked at 69,558 ppm, while heavy rare earths dysprosium and terbium (DyTb) reached 11,696 ppm.

Drilling campaigns extended the mineralised envelope both along strike and at depth, revealing a complex, stacked system of REE-Nb-Sc-Ta-U mineralisation. New assay records were set for niobium (17,092 ppm Nb2O5) and tantalum (962 ppm Ta2O5), with scandium and uranium also showing significant concentrations. These results underscore Monte Alto’s potential as a world-class rare earth deposit.

Pelé Project Emerges as District-Scale Rare Earths Hub

Approximately 60 kilometres southwest of Monte Alto, the Pelé project has been confirmed as a district-scale rare earth system. Exploration at Pelé Target 1 yielded high-grade hard rock and monazite sand mineralisation, with assays up to 17.7% TREO in outcrops and 13.5% TREO in diamond drilling. Key rare earths including NdPr and DyTb were present in substantial quantities, alongside niobium, scandium, tantalum, and uranium.

Drilling also delineated extensive shallow horizons of monazite sands, with grades up to 7.9% TREO and significant heavy rare earth content. Ground-based exploration revealed high-grade outcrops extending over 10 kilometres, suggesting a large, interconnected mineralised system with considerable upside potential.

Strategic Royalty Agreement Enhances Amargosa Project Value

In a strategic move, BRE and Rio Tinto amended their agreement for the Amargosa Bauxite-Gallium Project. The previous US$40 million milestone payment linked to bauxite production has been replaced with a fixed, life-of-mine royalty of US$1.00 per wet metric tonne of bauxite sold. This adjustment provides BRE with greater financial flexibility to advance exploration and development.

Historic drilling data confirmed thick, high-grade bauxite intervals with low impurities, while a re-assay program uncovered a new gallium discovery with exceptional grades up to 190 ppm Ga2O3. Gallium’s critical mineral status across multiple jurisdictions adds strategic value to the project. BRE has engaged RPM Global to expedite a JORC-compliant Mineral Resource and Scoping Study, aiming to fast-track project evaluation.

Robust Financial Position Supports Growth

At quarter-end, BRE reported a strong cash balance of A$75.4 million, well-positioned to fund ongoing exploration and feasibility studies through 2026. The company’s disciplined expenditure, including A$6.95 million on exploration activities during the quarter, reflects a focused approach to advancing its rare earth and bauxite assets.

Payments to related parties, including executive remuneration and drill rig services, were disclosed transparently, aligning with corporate governance standards. The company continues to hold a comprehensive portfolio of exploration tenements across Brazil’s Rocha da Rocha province, with no disposals or acquisitions during the quarter.

Outlook and Market Implications

Brazilian Rare Earths’ latest results reinforce its position as a significant emerging player in the global critical minerals sector. The combination of record grades, district-scale discoveries, and strategic partnerships positions BRE to capitalize on growing demand for rare earths and gallium, essential for clean energy and advanced technologies.

As the company progresses towards resource definition and scoping studies, market participants will be watching closely for updates on project economics and potential off-take agreements. The amended royalty structure with Rio Tinto may also serve as a model for future strategic collaborations in the sector.