Low-Cost Ema Rare Earth Project Advances Amid Funding and Environmental Milestones

Ema Project Advances with Strong Economic Fundamentals

Brazilian Critical Minerals Ltd (ASX: BCM) has released its quarterly activities report for the period ending 31 March 2025, showcasing a robust scoping study and a substantial upgrade to its Mineral Resource Estimate (MRE) at the Ema rare earth project in Brazil’s Apuí region. The study highlights a streamlined, low-risk development pathway focused solely on the Ema deposit, underpinning a project with industry-leading cost metrics and attractive financial returns.

The scoping study outlines an average life-of-mine (LOM) production of 4,800 tonnes per annum (tpa) of total rare earth oxides (TREO) at a high grade of 55.3% TREO in the final mixed rare earth carbonate (MREC) product. Operating costs are notably low, with unit cash operating costs of US$6.15/kg TREO and US$16.95/kg NdPr, positioning Ema as one of the most cost-efficient rare earth projects in the Western world.

Resource Upgrade Bolsters Project Confidence

The updated Mineral Resource Estimate, completed by GE21 Consultaria Mineral, reveals a total global resource of 943 million tonnes at 716ppm TREO, with the central starter zone now containing 341 million tonnes at 746ppm TREO. Critically, 73% of this starter zone resource (248 million tonnes) is classified in the higher confidence Indicated category, nearly doubling the previous indicated resource estimate. This upgrade provides a solid foundation for advancing feasibility studies and supports the project’s long mine life and economic viability.

Drilling results from the 2024 infill program continue to confirm excellent shallow grades and thicknesses, with significant intercepts exceeding 1,000ppm TREO. These results reinforce the potential for resource expansion and underpin the scoping study’s production schedule.

Innovative In-Situ Recovery Testing and Environmental Progress

In-situ recovery (ISR) column tests conducted at the Australian Nuclear Science and Technology Organisation (ANSTO) demonstrated recoveries significantly above scoping study assumptions, with 74% recovery of magnet rare earth oxides (MREE) and 62% recovery of total rare earth elements plus yttrium (TREE+Y). Notably, praseodymium and neodymium recoveries reached 85% and 72%, respectively, achieved over just 28 days of leaching, indicating commercial viability of the extraction method.

Environmental permitting is advancing, with the Amazonas state Environmental Protection Institute (IPAAM) granting a two-year water usage permit to support upcoming field pilot trials. These trials will provide critical hydrogeological data to refine the ISR process and environmental impact assessments, which are ongoing with a focus on mitigating potential hydrological effects.

Funding and Corporate Developments

BCM has executed a variation to its converting loan agreement with Drake Private Investments LLC, extending the term to December 2026 and agreeing to an additional advance of A$300,000. In exchange, the company will issue 50 million options exercisable at A$0.0175, subject to shareholder approval expected in May 2025. This funding arrangement supports the company’s continued development activities and field trials.

Cash and cash equivalents stood at A$0.64 million as of 31 March 2025, reflecting ongoing investment in exploration and project advancement.

Strategic Positioning in the Global Rare Earths Market

The Ema project’s geological similarity to China’s world-class ionic clay rare earth deposits, combined with its extensive landholding of 189 km² and high-grade resource, positions BCM as a potentially significant new supplier in the rare earths sector. The project’s low capital intensity (US$55 million pre-production capex including contingency) and rapid payback period of 28 months further enhance its appeal amid growing global demand for critical minerals.

With ongoing drilling, environmental studies, and field trials planned, BCM is poised to refine its project economics and advance towards feasibility, while engaging with stakeholders and potential offtake partners to secure the next phase of development.