Open-Ended Mineralisation at Caldas Raises Exploration Stakes for Axel REE

• Shallow auger drilling confirms high-grade TREO mineralisation
• Significant neodymium, praseodymium, dysprosium, and terbium grades reported
• Mineralisation remains open at depth and along strike within the Caldera
• Northern Caldera contact zone shows potential ionic adsorption style REE deposits
• 93 holes completed totaling 1,068 meters with further assays pending

Expanding Rare Earth Horizons in Brazil

Axel REE Limited (ASX: AXL) has announced a compelling set of assay results from its auger drilling program at the Poços de Caldas Caldera, located in Brazil. The program, focused on the Caldas Project, has delivered consistent high-grade rare earth element (REE) mineralisation, including critical and magnetic rare earth oxides such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb). These elements are vital for permanent magnets, which are essential components in green technologies and advanced electronics.

The shallow auger drilling campaign, comprising 93 holes and over 1,000 meters of drilling, targeted prospects both inside the alkaline Caldera and along its northern weathered contact zone. Results show mineralised intervals averaging over 3,200 parts per million total rare earth oxides (TREO) within the Caldera, with all holes ending in high-grade mineralisation, suggesting continuity at depth. Notably, some intercepts include 8.8 meters at 5,309 ppm TREO and 10.8 meters at 3,683 ppm TREO from surface, underscoring the project's potential scale and grade.

Geological Setting and Mineralisation Style

The Caldas Project benefits from a unique geological setting within the Poços de Caldas alkaline complex, where weathering has produced thick clay-rich horizons conducive to REE enrichment. The northern contact zone, characterized by the Botelhos leucogranite and São João da Mata gneissic complex, exhibits characteristics favorable for ionic adsorption style mineralisation, a style prized for its potential ease of extraction.

Assays from this contact zone reveal encouraging grades, with intervals such as 6 meters at 1,320 ppm TREO and 2 meters at 1,300 ppm TREO, featuring high percentages of magnetic rare earth oxides (MREO). This highlights the economic relevance of the mineralisation, particularly for supply chains focused on critical magnet materials.

Strategic Implications and Next Steps

Axel’s Board noted that the grades are consistent with discoveries made by neighboring explorers, reinforcing the prospectivity of the region. The fact that mineralisation remains open at depth and along strike suggests significant upside potential as exploration advances. The company’s extensive tenure around the Caldera’s margins offers a district-scale opportunity to build a substantial REE portfolio.

Looking ahead, Axel plans to continue its drilling and assay programs throughout 2025, aiming to delineate the extent and continuity of mineralisation more precisely. These efforts will be critical in advancing the Caldas Project towards resource definition and eventual development.

With global demand for rare earths intensifying amid the energy transition, Axel’s progress at Caldas positions it as a noteworthy player in the critical minerals landscape, particularly given Brazil’s standing as a country with significant REE reserves yet relatively underexplored deposits.

Bottom Line?

Axel REE’s expanding high-grade footprint at Caldas signals a promising chapter in Brazil’s rare earth exploration story, with deeper drilling poised to unlock further value.

Questions in the middle?

• How will follow-up drilling confirm the depth continuity and true widths of the mineralisation?
• What are the metallurgical characteristics and potential extraction costs of the ionic adsorption style deposits?
• How might Axel’s Caldas Project compare competitively with other regional rare earth developments in terms of scale and grade?