Axel REE Limited has unveiled new high-grade gallium and rare earth element zones at its Caladão Project in Brazil, expanding the mineralised footprint and reinforcing its status as a major critical minerals asset.
- Discovery of new mineralised Area C with shallow, high-grade gallium intercepts
- Expansion of Area B with thick, consistent gallium and rare earth element mineralisation
- Caladão Project’s mineralised zone now spans 115.6km, up from 92.2km
- Potential to grow the existing 100Mt Gallium Inferred Resource from Area A
- Ongoing metallurgical test work and maiden REE Mineral Resource Estimates underway
Expanding the Caladão Footprint
Axel REE Limited (ASX:AXL) has announced a significant step forward in its exploration of the Caladão Project, located in Brazil’s Lithium Valley, a region gaining prominence for critical minerals. The recent auger drilling campaign has identified a new mineralised zone, Area C, alongside extensions to the existing Area B. These discoveries have expanded the known mineralised footprint to 115.6 kilometres, a substantial increase from previous estimates.
Area C stands out with shallow surface intercepts of gallium oxide (Ga2O3) grading up to 70 grams per tonne over 8 metres from surface, highlighting a new horizon of mineralisation distinct from the previously defined zones. This zone is hosted in lateritic profiles developed over leucogranitic and monzogranitic rocks, differing geologically from Areas A and B, suggesting a district-scale system with multiple mineralisation styles.
Robust Gallium and Rare Earth Element Results
In Area B, step-out drilling has delivered multiple thick and high-grade gallium intercepts, including 17 metres at 69g/t Ga2O3 from surface, reinforcing the continuity and scale of mineralisation. Alongside gallium, broad intervals of total rare earth oxides (TREO) with strong magnetic rare earth oxide (MREO) proportions were reported, with grades exceeding 2,300 parts per million TREO in some intervals. These elements are critical for advanced technologies and defence applications, underscoring the strategic value of the Caladão Project.
The project’s current resource includes a maiden 100 million tonne gallium inferred resource at Area A, one of the world’s largest in-situ gallium deposits and notably the first in Brazil not associated with bauxite processing. The new zones at Areas B and C offer promising avenues to expand this resource base further.
Strategic Location and Development Outlook
Situated in Minas Gerais state, the Caladão Project benefits from Brazil’s Tier 1 mining jurisdiction status, with access to world-class infrastructure such as low-cost power, sealed highways, and proximity to mining hubs and ports. This logistical advantage enhances the project’s development potential and attractiveness to investors and downstream users.
Axel is advancing metallurgical test work aimed at developing low-cost recovery processes for both gallium and rare earth elements, a critical step toward commercial viability. Concurrently, the company is progressing maiden mineral resource estimates for rare earth elements at Area A and gallium at Area B, which will provide a clearer picture of the project’s economic potential.
Looking Ahead
With only about 25% of the approximately 430 square kilometre mineralised area drilled to date, the Caladão Project remains in the early stages of exploration. The recent discoveries and consistent high-grade results position it as a compelling asset in the global critical minerals landscape, particularly as demand for gallium and rare earth elements intensifies.
Non-Executive Chairman Paul Dickson emphasised the district-scale potential of Caladão, highlighting the systematic delivery of a maiden 100Mt gallium resource and the addition of Area C as a new growth opportunity. The company’s dual focus on resource expansion and metallurgical innovation, combined with Brazil’s supportive mining ecosystem, sets the stage for Caladão to emerge as a significant future supplier of these critical materials.
Bottom Line?
As Axel REE advances resource definitions and processing technologies, Caladão’s evolving scale and grade could reshape the global supply of gallium and rare earth elements.
Questions in the middle?
- How will the upcoming maiden REE Mineral Resource Estimates impact the project’s valuation?
- What progress is being made on metallurgical test work for low-cost gallium and REE recovery?
- Could further drilling reveal additional mineralised zones beyond Areas A, B, and C?