Axel REE’s Caladão Expansion Raises Stakes Amid Global Gallium Supply Risks
Axel REE Limited has reported maiden JORC Inferred Mineral Resource Estimates for rare earth elements and gallium at its Caladão Project in Brazil, alongside promising metallurgical test results and an expanded mineralised footprint.
- 233Mt rare earth elements resource with 22% high-value magnet rare earth oxide
- 100Mt gallium resource, one of the world’s largest non-bauxite deposits
- Mineralised zone expanded to 115.6km with new Area C discovery
- Metallurgical tests indicate potential for low-cost heap leaching extraction
- Strong cash position of $7.9 million and dual listing on Frankfurt Stock Exchange
Significant Resource Milestones at Caladão
Axel REE Limited has delivered two maiden JORC (2012) Inferred Mineral Resource Estimates (MREs) at its flagship Caladão REE-Gallium Project in Brazil, marking a pivotal advancement for the company and the critical minerals sector. The rare earth elements (REE) resource totals 233 million tonnes at 2,143 parts per million total rare earth oxides (TREO), with a notable 22% comprising high-value magnet rare earth oxides. Complementing this, the company announced a maiden gallium resource of 100 million tonnes at 42 parts per million, representing one of the largest in-situ gallium deposits globally that is not linked to alumina or bauxite processing.
Expanding the Mineralised Footprint
The mineralised zone at Caladão has been extended by 23.4 kilometres through ongoing auger drilling, now covering a substantial 115.6 kilometres across Areas A, B, and the newly identified Area C. Area C’s discovery is particularly noteworthy, characterized by lateritic soils enriched in gallium and REE, distinct from the granitic hosts of Areas A and B. This expansion underscores the district’s potential to host multiple mineralisation styles and significantly enhances the project’s scale and exploration upside.
Innovative Metallurgical Advances
Preliminary metallurgical testwork conducted by ANSTO and CETEM has yielded encouraging results, demonstrating strong recoveries of critical magnet rare earth elements using simple, low-cost leaching methods. The proposed heap leach process, which avoids drilling, blasting, and milling, promises to reduce environmental impact and capital expenditure, aligning with global ESG standards. While these results are based on limited samples and cannot yet be extrapolated across the entire project, they offer a promising pathway to economically viable extraction.
Strategic Corporate Developments
On the corporate front, Axel REE maintains a robust cash position of $7.9 million, supporting its aggressive exploration and development agenda. The company successfully dual listed on the Frankfurt Stock Exchange, enhancing its visibility and accessibility to European investors amid rising global interest in critical minerals. Plans to list on the OTC markets in North America are underway, aiming to broaden the investor base further, especially in light of recent strategic moves by major technology and defense players to secure rare earth supply chains outside China.
Outlook and Next Steps
Axel REE is advancing infill drilling programs to upgrade resource confidence and support upcoming scoping and technical studies. The company remains on track to meet its exploration and development objectives within budget, with ongoing metallurgical investigations expected to refine extraction methods and enhance resource utilisation. As geopolitical tensions and supply constraints heighten the strategic importance of critical minerals like gallium and rare earths, Axel’s Caladão Project is well positioned to become a key player in the global supply chain.
Bottom Line?
Axel REE’s maiden resource estimates and metallurgical progress position Caladão as a rising critical minerals asset amid tightening global supply.
Questions in the middle?
- How will further metallurgical test results impact the economic viability of the Caladão resources?
- What timeline does Axel REE envision for advancing from resource definition to development?
- How might geopolitical shifts, especially China’s export bans, influence Axel’s market positioning and partnerships?
