Magnum’s Brazilian Rare Earth Drilling Faces Weather Risks Amid High Expectations

Magnum Advances Brazilian Rare Earth Exploration

Magnum Mining & Exploration Limited (ASX – MGU) has reached a significant milestone in its Brazilian rare earth element (REE) exploration strategy, announcing that it has secured all necessary permits and land access to commence drilling on its Azimuth 125 and Palmares projects. This development unlocks the next phase of exploration, with a focus on validating high-priority targets identified through extensive geochemical sampling and geophysical surveys.

The company plans to initiate an auger and reverse circulation (RC) drilling campaign targeting four priority prospects within the Azimuth 125 project – Piranhas, Montes Claros de Goias, Piracanjuba, and Corumbaiba. These sites are strategically located near established REE and niobium operations, including Fortescue Metals Group’s holdings and the CMOC Brazil Niobium Mine, suggesting promising geological parallels.

Feirinha Prospect – A Highlight of High-Grade Potential

Within the Palmares project, the Feirinha Prospect stands out with previous trench and rock chip sampling revealing total rare earth oxide (TREO) grades up to 1.69%, alongside notable concentrations of heavy rare earth oxides. These results are complemented by recent leach test work demonstrating excellent recoveries of 1,100 ppm TREO in just five minutes under ambient conditions, underscoring the potential for economically viable extraction methods.

The upcoming drilling program will initially employ auger rigs to sample ionic clay layers overlying pegmatite dykes, followed by deeper RC drilling to delineate mineralised zones. This phased approach allows for flexible, data-driven adjustments on site, optimizing the identification of high-value mineralisation.

Operational Readiness and Rigorous Quality Control

Magnum has ordered two auger rigs and is in the process of engaging contractors for RC drilling. The campaign will be overseen by Antonio Vitor, the company’s experienced in-country manager and a key figure in securing the Brazilian tenements. Assaying will be conducted by internationally recognised laboratories in Brazil, incorporating stringent quality assurance and control measures such as duplicates, blanks, and standards, with a subset of samples sent for referee analysis to ensure data integrity.

The drilling is scheduled to commence in October 2025, with an expected duration of approximately eight weeks, subject to weather conditions. Assay results are anticipated by January 2026, which will provide critical insights to guide subsequent exploration and development decisions.

Strategic Context and Market Implications

Magnum’s exploration activities are positioned within a rapidly emerging REE district in south-central Brazil, an area attracting significant interest from major industry players. The Azimuth 125 project covers a substantial land package along a key geological lineament known for hosting exotic intrusives and REE mineralisation. Success here could enhance Magnum’s standing in the global critical minerals supply chain, particularly as demand for rare earths intensifies amid the green energy transition.

While the forward-looking nature of exploration entails inherent risks, the combination of high-grade sampling results, promising leach recoveries, and strategic location provides a compelling narrative for investors and stakeholders watching this space closely.