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How High Can Axel REE’s Gallium Grades Go at Caladão Project?

Mining By Maxwell Dee 3 min read

Axel REE Limited reveals further high-grade gallium and rare earth element mineralisation at its Caladão Project in Brazil, expanding the known mineralised footprint and advancing resource definition.

  • High-grade gallium up to 128g/t Ga2O3 confirmed from surface in Area B
  • Mineralised area now spans 86 km² across Areas A and B
  • Only 20% of the total 430 km² project area tested to date
  • Strong lateral continuity and grade consistency underpin resource potential
  • Mineral Resource Estimation for Area A underway, maiden resource for Area B progressing
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Expanding Gallium and REE Potential

Axel REE Limited (ASX – AXL) has announced compelling new assay results from its ongoing Phase Two auger drilling program at the Caladão Project, located in the Lithium Valley of Minas Gerais, Brazil. The latest data confirm the presence of high-grade gallium mineralisation, with concentrations reaching up to 128 grams per tonne of gallium oxide (Ga2O3) from surface in Area B. This discovery extends the mineralised footprint beyond the previously reported Area A, now covering a combined 86 square kilometres.

Despite this significant expansion, the company has only tested approximately 20% of the total 430 square kilometre project area, suggesting substantial upside potential remains. The drilling results demonstrate remarkable lateral continuity and consistent grades, characteristics that are critical for defining a scalable and economically viable resource.

Strategic Importance of Gallium and Rare Earth Elements

Gallium is a critical mineral widely used in advanced technologies, including semiconductors, LEDs, and solar panels, yet it is rarely found in high concentrations. Typically, gallium is recovered as a by-product from aluminum and zinc processing, making Axel's discovery of direct high-grade gallium mineralisation particularly noteworthy. Alongside gallium, the project also hosts significant rare earth element (REE) mineralisation, essential for clean energy technologies such as electric vehicles and wind turbines.

The Caladão Project's geological setting features lateritic profiles enriched in gallium and REEs, with mineralisation starting from surface and extending to notable thicknesses. The company's ongoing drilling program has intercepted multiple zones exceeding 50g/t Ga2O3, with some intervals reaching up to 17 meters thick, reinforcing the project's potential as a future critical minerals supplier.

Progressing Towards Resource Definition

Axel is actively advancing its Mineral Resource Estimation (MRE) for Area A in collaboration with SRK, a globally recognised consultancy, with completion expected by early July. Concurrently, assay results from Area B continue to support the definition of a maiden gallium and REE resource. The company is also undertaking metallurgical test work at ANSTO and other facilities to evaluate extraction processes for gallium and rare earth elements, a key step towards assessing economic viability.

Non-Executive Chairman Paul Dickson emphasised the significance of the results, highlighting the consistent mineralised profile and the scalability of the gallium mineralisation. He noted that these findings align with Axel's strategy to rapidly develop a significant resource base to meet growing demand for critical minerals in technology and clean energy sectors.

Looking Ahead

With only a fraction of the Caladão Project area tested, Axel REE's recent results mark an important milestone in unlocking the project's full potential. The combination of high-grade gallium and rare earth elements positions the company well within the critical minerals space, particularly as global demand intensifies. Investors and industry watchers will be keenly awaiting the forthcoming MRE for Area A and the maiden resource estimate for Area B, which will provide clearer insights into the scale and quality of this emerging resource.

Bottom Line?

Axel REE’s expanding gallium and REE footprint at Caladão sets the stage for a pivotal resource milestone in a critical minerals hotspot.

Questions in the middle?

  • What will the maiden Mineral Resource Estimate for Area B reveal about the scale of the gallium and REE deposit?
  • How will metallurgical test results influence the economic feasibility of gallium extraction from the lateritic profile?
  • What exploration strategies will Axel employ to efficiently test the remaining 80% of the Caladão Project area?