Axel REE Accelerates High-Grade REE-Gallium Resource with $9.6M Cash and Strategic MoUs
Axel REE Limited advances its flagship Caladão REE-Gallium Project with significant high-grade intercepts and begins a maiden Mineral Resource Estimate, backed by $9.6 million in cash and strategic government partnerships.
- Commencement of maiden JORC Mineral Resource Estimate at Caladão
- Exceptional high-grade gallium and rare earth element intercepts from surface drilling
- Strategic MoUs signed with Minas Gerais government bodies to fast-track development
- Strong cash position of $9.6 million at quarter-end
- Exploration expenditure of $682,838 with no mining production activities
Strong Progress at Caladão REE-Gallium Project
Axel REE Limited (ASX: AXL) has reported robust advancement in its March 2025 quarterly activities, highlighting the acceleration of its flagship Caladão REE-Gallium Project in Minas Gerais, Brazil. The company announced the commencement of a maiden JORC-compliant Mineral Resource Estimate (MRE) with SRK Consulting, alongside metallurgical testing with the Australian Nuclear Science and Technology Organisation (ANSTO). These steps mark a critical phase in transitioning from exploration to resource definition.
Drilling results continue to impress, with exceptional gallium intercepts near surface, including 20 meters at 79g/t Ga2O3 and 17 meters at 85g/t Ga2O3, alongside high-grade rare earth element (REE) assays over a 60km mineralised area. This combination of REE and gallium mineralisation is rare and positions Axel uniquely in the critical minerals sector, especially amid global supply chain constraints following export restrictions from China.
Strategic Partnerships to Expedite Development
Axel has signed two significant Memorandums of Understanding (MoUs) with key stakeholders in the State of Minas Gerais. The first is with the Federation of Industries of Minas Gerais (FIEMG), granting Axel access to LabFab ITR, South America’s first rare earth magnet research and production facility. This collaboration opens avenues for research and potential testing of rare earth magnet production using Axel’s materials.
The second MoU with the State Secretariat for Economic Development and Invest Minas aims to support project development and fast-track licensing and approvals. These partnerships are strategic moves to streamline regulatory processes and embed Axel within the local industrial ecosystem, enhancing the prospects for timely project advancement.
Financial Position and Corporate Developments
Financially, Axel remains well-capitalised with $9.6 million in cash at the end of the quarter, ensuring the company is fully funded to deliver the MRE and continue exploration. The company issued 79.4 million loyalty bonus options to shareholders, reflecting confidence in its growth trajectory and rewarding shareholder support since its IPO in July 2024. Exploration expenditure for the quarter was $682,838, reflecting disciplined capital deployment focused on advancing key projects.
Notably, no mining production or development activities were reported during the quarter, consistent with Axel’s current stage of exploration and resource definition. The company holds extensive tenements across Brazil, covering over 1,100 square kilometres, with ongoing drilling programs aimed at expanding mineralisation footprints.
Outlook and Market Positioning
Managing Director Dr Fernando Tallarico emphasised the significance of the gallium discovery as a co-product to the REE resource, highlighting its exceptional grades and near-surface occurrence. This dual commodity focus could enhance project economics and market appeal, given gallium’s critical role in electronics and renewable energy technologies.
With the MRE expected to be completed in the June quarter, Axel is poised to provide the market with a clearer picture of the resource scale and quality. Metallurgical testing outcomes will further inform processing strategies and potential product streams. The strategic MoUs and strong cash position underpin a confident development pathway, positioning Axel as an emerging player in the critical minerals supply chain.
Bottom Line?
As Axel nears its maiden resource estimate and leverages strategic partnerships, the next quarter will be pivotal in defining its role in the global critical minerals landscape.
Questions in the middle?
- What will the maiden Mineral Resource Estimate reveal about the scale and grade of the Caladão REE-Gallium deposit?
- How will metallurgical testing outcomes influence the processing and economic viability of the gallium co-product?
- What impact will the strategic MoUs have on permitting timelines and local stakeholder engagement?