Palmares REE Project Shows Up to 1.69% TREO as Leach Testing Begins

Leach Testing Kicks Off at Palmares

Magnum Mining & Exploration Limited (ASX, MGU) has taken a significant step forward in advancing its Palmares Rare Earth Element (REE) Project in Bahia State, Brazil, by commencing leach testing on high-grade samples from tenement 871332/2020. This testing aims to assess the recovery rates and processing pathways of rare earth oxides, a critical step before committing to more capital-intensive drilling programs.

Promising High-Grade Mineralisation

The samples undergoing testing were selected following impressive trench and rock chip assays at the Feirinha Prospect, which revealed total rare earth oxide (TREO) grades as high as 1.69%, with notable enrichment in heavy rare earth elements such as dysprosium (Dy), terbium (Tb), and yttrium (Y). These elements are highly sought after for their applications in permanent magnets used in electric vehicles, wind turbines, and defence technologies.

Magnum’s geologist has mapped a 1.3-kilometre strike length of G2 pegmatites, the primary host rock for these elevated REE concentrations, with consistent grades averaging 0.40% TREO and multiple samples exceeding 0.5%. This continuity of mineralisation underscores the tenement’s potential as a viable drilling target.

Strategic Positioning and Next Steps

Palmares is part of a broader portfolio comprising 18 tenements covering approximately 348 square kilometres, with exploration potential largely untapped as less than 0.1% of the ground has been tested to date. Magnum’s footprint extends further with the Azimuth REE Project, adding another 72 exploration permits over roughly 1,201 square kilometres, making the company one of the largest REE landholders in the region.

Chairman Michael Davy emphasised the prudence of the current approach, "We are prioritising low-cost, targeted programs such as leach testing to validate recoveries before committing to drilling. This strategy aims to maximise value across our portfolio while managing expenditure responsibly." The company expects leach test results by the end of September 2025, which will inform the design of a drilling program to test extensions of the high-grade mineralisation.

Broader Implications for Rare Earth Supply

With global demand for rare earth elements intensifying due to the green energy transition and technological advancements, projects like Palmares could play a pivotal role in diversifying supply chains. Magnum’s strategic landholdings in Brazil position it well to capitalize on this trend, provided the upcoming leach testing confirms efficient recovery of these critical minerals.