Risks and Rewards: BRE’s Transition from Exploration to Rare Earth Development

• Sulista West drilling returns up to 21% TREO with record NdPr and uranium grades
• Monte Alto metallurgical tests yield high-purity rare earth carbonate and uranium yellowcake
• Strategic partnership secured with SENAI CIMATEC for pilot plant development
• Amargosa Bauxite-Gallium Project reveals world-class gallium grades and revised Rio Tinto royalty terms
• BRE shortlisted for Brazil’s BRL 5 billion Strategic Minerals Funding Program

Sulista West Emerges as a Rare Earth Powerhouse

Brazilian Rare Earths Limited (ASX, BRE) has delivered a compelling update in its June 2025 quarterly report, spotlighting the Sulista West project as an ultra high-grade rare earth discovery. Diamond drilling results revealed exceptional total rare earth oxide (TREO) grades reaching 21%, with standout concentrations of neodymium-praseodymium (NdPr) exceeding 43,000 ppm and uranium oxide hitting 8,211 ppm. These figures not only reinforce Sulista West’s potential but also expand the known mineralised footprint across the Rocha da Rocha Province, positioning it as a major exploration district alongside BRE’s flagship Monte Alto deposit.

Adding to the excitement, a new surface discovery dubbed “Outcrop Ridge” returned grab samples with up to 20.6% TREO, indicating significant strike extension potential. Ground gamma surveys further delineated a substantial mineralised system, prompting ongoing drilling and geophysical work to define scale and continuity.

Metallurgical Breakthroughs at Monte Alto

Complementing exploration success, BRE’s metallurgical test work at Monte Alto has achieved a major milestone by producing a high-purity Mixed-Rare-Earth Carbonate (MREC) product suitable for conventional solvent-extraction separation. The hydrometallurgical process demonstrated impressive extraction rates of key magnetic rare earths NdPr and DyTb, ranging from 86% to 90%, while also successfully recovering uranium as a yellowcake co-product. Notably, the process bypasses mineral beneficiation, offering capital and operational cost advantages and enhancing overall rare earth yields.

These results underpin BRE’s strategy to establish a vertically integrated rare earth supply chain in Brazil, with ongoing work focused on producing separated NdPr products and recovering valuable co-products such as niobium, tantalum, and scandium.

Strategic Partnerships and Funding Momentum

BRE has secured a binding agreement with SENAI CIMATEC, a leading Brazilian research institution, to jointly develop a laboratory and pilot plant facility in Bahia. SENAI CIMATEC’s funding commitment of approximately A$2.3 million will support process optimisation and downstream development ahead of production, with commissioning targeted for mid-2026.

Further bolstering its financial position, BRE was shortlisted for Brazil’s BRL 5 billion Strategic Minerals Funding Program, designed to accelerate companies contributing to critical mineral supply chains essential for energy transition technologies. BRE is actively working with funding agencies Finep and BNDES to finalise a funding package.

Amargosa Bauxite-Gallium Project Adds Strategic Depth

In parallel, the Amargosa Bauxite-Gallium Project, acquired from Rio Tinto, has revealed exceptional gallium grades up to 190 ppm Ga2O3, placing it among the highest-grade undeveloped gallium prospects globally. BRE renegotiated the acquisition terms with Rio Tinto, replacing a US$40 million milestone payment with a fixed royalty of US$1.00 per wet tonne of bauxite sold, enhancing funding flexibility. The project’s strategic location near infrastructure and ports in Bahia further supports its development potential.

Financial Strength and Next Steps

As of 30 June 2025, BRE holds a robust cash balance of A$67.3 million, well positioned to fund exploration and feasibility programs through 2026. The company is advancing multiple workstreams including further drilling at Sulista West, East, North, and Outcrop Ridge, high-resolution geophysical surveys, metallurgical process optimisation, and scoping studies for Monte Alto and Amargosa projects.

With a growing portfolio encompassing 20 of the 50 U.S. Critical Minerals and strategic partnerships with industry and research leaders, BRE is rapidly transitioning from exploration to development, aiming to become a cornerstone of Brazil’s rare earth and critical minerals sector.

Bottom Line?

BRE’s June quarter progress cements its rare earth credentials, but upcoming drilling and funding outcomes will be pivotal for its development trajectory.

Questions in the middle?

• How will BRE’s pilot plant partnership with SENAI CIMATEC accelerate commercial production timelines?
• What are the implications of BRE’s gallium discovery at Amargosa amid global supply disruptions?
• Can BRE secure full funding from Brazil’s Strategic Minerals Program to support its ambitious growth plans?