Funding Limits Loom as Enova Awaits Landowner Approval for East Salinas Drilling

Exploration Breakthrough at East Salinas

Enova Mining Ltd (ASX, ENV) has reported compelling exploration results from its Brazilian portfolio for the quarter ending September 2025, spotlighting the East Salinas Project as a standout discovery. Rock chip sampling across the Naked Hill, Bald Hill, and Hairy Hill targets revealed rare earth element (REE) grades as high as 2.17% Total Rare Earth Oxide (TREO), with 18 samples exceeding 1% TREO. Notably, the neodymium-praseodymium (NdPr) oxide ratios reached up to 37.8%, underscoring the project's potential to supply high-value magnetic rare earths critical for clean energy technologies.

Geological mapping suggests these three prospects are surface expressions of a single, extensive mineralised granite body within the Medina Intrusive Complex. This interpretation significantly expands the scale potential of East Salinas, positioning it as a district-scale REE opportunity within Enova’s portfolio.

Advancing Towards Maiden Drilling

Preparations for East Salinas’ maiden diamond drilling program are well underway, with plans for 10 to 15 holes totaling approximately 1,000 meters along a 4-kilometer strike. The drilling aims to test the vertical continuity of mineralisation and provide fresh core samples for detailed geological and metallurgical analysis. While site infrastructure such as road upgrades and drill pads have been completed ahead of schedule, commencement awaits landowner approval, a critical step that will be closely watched by investors.

CODA Central and East, Multi-Commodity Potential

At the CODA Central Project, Enova’s auger drilling confirmed widespread, near-surface mineralisation of titanium dioxide (TiO2), rare earth oxides, and niobium oxide (Nb2O5). Intercepts included intervals up to 23 meters at 15.02% TiO2 and 18 meters at 4,055 ppm TREO with a 22.7% NdPr ratio. These results reinforce CODA’s status as a rapidly advancing, multi-commodity critical minerals project. Auger drilling has also commenced at CODA East to expand the mineralised footprint, with assays pending.

Ongoing metallurgical test work at both East Salinas and CODA aims to optimise cost-effective gravity concentration methods, with early indications supporting coarse milling and gravity separation as viable processing routes. These efforts are crucial to establishing economic viability ahead of resource definition.

New Frontiers at Santo Antônio do Jacinto

Enova completed its maiden geochemical sampling program at the Santo Antônio do Jacinto project, marking the first-ever exploration undertaken in this prospective Brazilian geological belt. Fifty-two rock chip samples were collected across the 23,409-hectare tenement package, setting the stage for detailed structural mapping and follow-up sampling to identify drill-ready targets in the coming quarter.

Corporate and Financial Position

To support these exploration initiatives, Enova successfully raised $0.85 million through a well-supported placement priced at $0.007 per share, reflecting strong investor confidence. The funds will primarily finance the East Salinas drilling campaign, metallurgical test work, and early-stage exploration at Santo Antônio do Jacinto and other Brazilian assets. Despite a solid cash position of $673,000 at quarter-end, the company’s funding runway is limited to just over one quarter, indicating the likelihood of further capital raises to sustain momentum.

Meanwhile, Australian projects progressed with key environmental and land access approvals, including an 18-month extension of the Sacred Site Clearance Certificate for the Charley Creek Project, underpinning future exploration activities.

Strategic Outlook

Enova’s expanding footprint across Brazil’s critical minerals landscape aligns with global demand for rare earths and battery metals essential to the clean energy transition. The company’s integrated approach; combining high-grade discoveries, metallurgical optimisation, and strategic capital management; positions it well to advance from exploration to resource definition. However, the pending landowner approvals and metallurgical results will be pivotal in shaping the near-term trajectory.