Axel REE Limited has announced a significant inferred rare earth mineral resource of 233 million tonnes at its Caladão Project in Brazil, highlighting strong metallurgical recovery prospects that could substantially increase resource size.
- 233Mt inferred rare earth resource at 2,143ppm TREO in Area A
- 22% high-value magnet rare earth oxide content
- Conservative metallurgical recoveries capped at 31%, with tests showing up to 52%
- Dual-commodity project with 100Mt gallium resource
- Infill drilling and metallurgical studies planned to upgrade resource confidence
A Major Milestone for Caladão
Axel REE Limited has delivered a landmark inferred mineral resource estimate (MRE) for rare earth elements (REE) at its flagship Caladão Project in Minas Gerais, Brazil. The newly reported 233 million tonnes at 2,143 parts per million (ppm) total rare earth oxide (TREO) represents a substantial addition to the project’s portfolio, underscoring Caladão’s emerging status as a globally significant critical minerals asset.
This resource estimate, confined to the saprolite layer of Area A and constrained by a 450ppm TREO cut-off, covers a mineralised zone approximately 33 kilometres in length. Notably, this area accounts for less than 10% of the total Caladão Project tenure, suggesting considerable exploration upside remains.
Conservative Yet Promising Metallurgical Assumptions
SRK Consulting, the independent firm responsible for the MRE, applied a cautious approach to metallurgical recovery, capping efficiencies at 31%. This conservative stance contrasts with preliminary testwork conducted by ANSTO, which has demonstrated recoveries reaching 52% using simple, low-cost leaching methods. Should these higher recovery rates be confirmed and applied, the effective rare earth tonnage could more than double, significantly enhancing the project’s economic potential.
Further metallurgical testwork is ongoing, exploring a novel two-stage heap leach process that promises to reduce environmental impact and capital expenditure by eliminating the need for drilling, blasting, crushing, milling, and tailings dams. This aligns well with global environmental, social, and governance (ESG) expectations and could position Caladão as a low-cost, sustainable rare earth producer.
Dual-Commodity Strength and Strategic Location
Caladão’s unique dual-commodity nature is reinforced by the coexistence of a 100 million tonne gallium inferred resource alongside the rare earths. Gallium, often a valuable by-product, could offset operational costs and improve project economics. The project’s location within Brazil’s Lithium Valley benefits from established infrastructure supporting battery materials supply chains, including proximity to power, roads, and services.
Geologically, the rare earth mineralisation is hosted in ionic adsorption clays within weathered granitic rocks, a style amenable to low-impact extraction techniques. The presence of high-value magnet rare earth oxides such as neodymium, praseodymium, dysprosium, and terbium further enhances the strategic importance of the resource.
Next Steps – Infill Drilling and Resource Upgrade
Axel plans an infill drilling program to increase resource confidence from inferred to indicated status, a critical step toward advancing scoping and technical studies. This will also support efforts to expand the resource footprint across Areas A, B, and the newly identified Area C. Continued metallurgical testing aims to refine recovery assumptions and validate the heap leach process.
Non-Executive Chairman Paul Dickson emphasised the significance of defining two major mineral resources in quick succession, highlighting Caladão’s potential as a cornerstone critical minerals project with global relevance.
Bottom Line?
With conservative estimates already pointing to a globally significant resource, Axel’s next phase of drilling and metallurgical work will be pivotal in unlocking Caladão’s full potential.
Questions in the middle?
- How will infill drilling impact the resource classification and overall tonnage?
- Can metallurgical recoveries consistently exceed 50% in larger-scale testing?
- What are the timelines and regulatory hurdles for advancing Caladão toward development?