Axel REE Limited has initiated a new Mineral Resource Estimate at Area B of its Caladão Project in Brazil, aiming to build on its already significant rare earth and gallium resources. This move could further position Caladão as a critical global source beyond China’s dominance.
- New JORC Mineral Resource Estimate underway at Caladão Project Area B
- Existing inferred resources – 233Mt @ 2,143ppm TREO and 100Mt @ 42ppm gallium at Area A
- GE21 Consultoria Mineral appointed for resource estimation
- Completion targeted by December 2025 to support metallurgical and economic studies
- Caladão offers strategic diversification from China’s gallium supply dominance
Caladão Project Poised for Expansion
Axel REE Limited is advancing its Caladão Project in Brazil with the appointment of GE21 Consultoria Mineral to deliver a new Mineral Resource Estimate (MRE) for Area B. This follows the company’s earlier success in defining substantial inferred resources at Area A, where 233 million tonnes of rare earth elements (REE) and 100 million tonnes of gallium have been identified.
The Caladão Project, located in the heart of Brazil’s Lithium Valley, is emerging as a district-scale, potentially Tier-1 source of primary gallium and REEs. These elements are critical to the clean energy transition and modern technologies, with gallium’s supply currently dominated by China, which controls approximately 96% of global primary production. Axel’s deposit is notable for being a stand-alone, in-situ gallium resource rather than a by-product of bauxite processing, offering a rare opportunity for supply diversification.
Strategic and Technical Milestones
The new MRE at Area B is expected to be completed by the end of December 2025. It will build on recent drilling results that confirmed high gallium concentrations; up to 128ppm Ga2O3; within lateritic soils and weathered profiles, closely associated with REE-enriched horizons. This dual enrichment underscores Caladão’s potential as a multi-commodity deposit capable of supplying critical materials essential to global supply chains.
GE21, a respected Brazilian consultancy with experience working alongside major mining companies and ASX-listed firms, brings technical expertise to this next phase. The forthcoming MRE will provide a foundation for metallurgical testing and preliminary economic assessments, key steps as Axel transitions from advanced exploration toward development.
Logistics and Location Advantages
Beyond the resource potential, Caladão benefits from strategic logistics, including proximity to Brazilian industrial hubs, ports, grid power, and skilled mining services. These factors enhance the project’s development optionality and attractiveness for future investment and partnerships.
Non-Executive Chairman Paul Dickson highlighted the significance of this milestone, emphasizing the potential to demonstrate Caladão as an advanced REE–Gallium project within Brazil, a country ranked third globally for REE reserves. The expansion of the resource base at Area B could further solidify Axel’s position in the critical minerals sector.
Looking Ahead
As the MRE progresses, Axel’s focus will shift toward metallurgical testing and economic evaluation, which will be crucial in defining the project’s commercial viability. The company’s broader strategy includes extensive exploration across its Brazilian tenure, aiming to unlock further critical mineral resources to support the global transition to sustainable technologies.
Bottom Line?
The upcoming resource estimate at Area B could be a pivotal step in establishing Caladão as a globally significant source of gallium and rare earth elements.
Questions in the middle?
- What will the updated resource figures at Area B reveal about the scale and grade of the deposit?
- How will metallurgical testing impact the economic feasibility of extracting gallium and REEs from Caladão?
- What partnerships or financing strategies might Axel pursue to advance Caladão toward production?