Axel REE Limited has secured three new exploration licences adjacent to its Caladão Project in Brazil, launching a drilling campaign aimed at expanding its rare earth elements and gallium resources.
- Three new contiguous licences totaling 867 hectares granted in Lithium Valley, Brazil
- Licences share geological setting with existing 233Mt REE and 100Mt gallium resources
- 49-hole auger drilling program commencing to delineate additional mineralisation
- Licence transfer process underway with no impact on exploration activities
- Strengthens Axel’s position as a leading REE-gallium explorer in Brazil
Strategic Expansion in Brazil’s Lithium Valley
Axel REE Limited (ASX – AXL) has taken a significant step forward in its quest to become a major player in the rare earth elements (REE) and gallium sector by securing three new contiguous exploration licences covering approximately 867 hectares. These licences are located adjacent to the company’s existing Caladão Project Area A in the Lithium Valley district of Minas Gerais, Brazil, a region already known for its substantial mineral resource estimates.
The newly granted licences share the same geological setting as Area A, which hosts an inferred mineral resource of 233 million tonnes at 2,143 parts per million total rare earth oxides (TREO) and 100 million tonnes at 41 parts per million gallium-bearing laterite. This continuity in geology suggests strong potential for resource expansion, a prospect Axel is now actively pursuing.
Drilling Program Targets Resource Growth
To capitalize on this opportunity, Axel is initiating a 49-hole auger drilling program designed to delineate gallium-rich lateritic layers and REE-enriched horizons within the newly acquired licences. This initial drilling phase will provide critical data to guide subsequent diamond drilling, which aims to test mineralisation at depth and potentially increase the current resource base.
Non-Executive Chairman Paul Dickson emphasized the importance of this expansion, noting that the licences “expand our footprint at Caladão and target the same geology that hosts our 233Mt inferred REE resource and 100Mt gallium resource.” The company’s focus remains on resource growth and advancing its position as a leading REE-gallium explorer in Brazil.
Licence Transfer and Geological Setting
The licences were previously held by Lobo Guara Mineracao e Representacao Eire and are in the process of being legally transferred to Axel. This transfer grants Axel the legal and beneficial interest in all metals and minerals, excluding lithium, within the licence areas. Importantly, this process is underway without impacting the planned drilling program.
Geologically, the licences cover a plateau capped by lateritic cover over the Caladão Granite, a known host for both gallium and REE mineralisation. The topography varies significantly, offering vertical development potential for weathering profiles that are key to the formation of these mineral deposits.
Positioning for the Future of Critical Minerals
Axel REE’s expanded footprint in Brazil aligns with its broader mission to explore and develop critical minerals essential for modern technology and sustainable economies. Brazil, with its vast and underexplored mineral reserves, offers a strategic advantage for companies like Axel aiming to secure supply chains for rare earths and gallium, elements vital for electronics, renewable energy, and advanced manufacturing.
While the drilling program is at an early stage, the combination of geological continuity, significant existing resources, and proactive exploration efforts positions Axel well for potential resource upgrades in the near future.
Bottom Line?
Axel’s expanded licences and active drilling mark a pivotal moment in its journey to unlock Brazil’s critical mineral wealth.
Questions in the middle?
- What initial results will the 49-hole auger drilling program reveal about resource expansion?
- How quickly will the licence transfer process complete, and what regulatory hurdles remain?
- What are the implications of excluding lithium rights from the licence transfer for Axel’s strategic plans?