Axel REE Limited reports promising metallurgical results from its Caladão Project in Brazil, confirming a magnet-rich ionic clay system with rare earth grades comparable to established Asian operations. These findings underpin a low-capital, low-operating cost in-situ leach development strategy.
- Magnesium sulfate leach tests confirm ~40% NdPr and ~42% magnet rare earth oxides in leach solutions
- Soluble total rare earth oxide grades rival Malaysia’s Gerik ISL REE mine benchmarks
- Low-CAPEX, low-OPEX in-situ leach method validated for Caladão’s Woolrich ISL Target
- Mineral Resource Estimate for Area B expected December 2025 to support development
- Environmental and operational advantages position Axel as a future high-value MREC supplier
A Breakthrough in Brazilian Rare Earths
Axel REE Limited (ASX – AXL) has announced a significant milestone in its Caladão Project, located in Brazil’s Lithium Valley. Initial metallurgical testing using magnesium sulfate leaching at the Woolrich ISL Target in Area B has confirmed the presence of a magnet-rich ionic adsorption clay (IAC) system. This breakthrough supports a low-cost in-situ leach (ISL) development concept, potentially positioning Axel as a key supplier of mixed rare earth carbonate (MREC) products.
The leach solutions from the Woolrich Target exhibit approximately 40% neodymium-praseodymium (NdPr) and 42% magnet rare earth oxides (MREO), with meaningful contributions from dysprosium and terbium. These proportions are highly attractive given the premium value of these elements in permanent magnet manufacturing, critical for electric vehicles and renewable energy technologies.
Comparable to Established Asian Operations
Notably, the soluble total rare earth oxide (TREO) grades in Axel’s samples are comparable to, and in some cases exceed, those at the Gerik ISL REE mine in Malaysia, a well-established and profitable operation. Gerik’s resource grades around 486ppm soluble TREO, and Axel’s Woolrich intercepts have recorded values up to 677ppm soluble TREO in some drill holes, suggesting strong potential for resource growth with further drilling.
Axel’s non-executive chairman, Paul Dickson, highlighted the significance of these results, stating that the combination of high soluble TREO grades and a magnet-rich assemblage places the company in a strong position within the ionic clay peer group. The validation of the ISL concept at Caladão could translate into a low capital expenditure (CAPEX) and operating expenditure (OPEX) project, a critical factor for economic viability in rare earth mining.
Advantages of In-Situ Leaching
The ISL method offers several advantages over traditional mining techniques. It eliminates the need for large open pits, extensive crushing, and grinding circuits, significantly reducing upfront capital costs and environmental footprint. Operating costs are also lower due to the avoidance of heavy earthmoving and materials handling, with reagent consumption and wellfield maintenance becoming the primary expenses.
Furthermore, ISL mining has a smaller surface disturbance, reducing waste volumes and rehabilitation complexity. This method also tends to have a better environmental and social profile, with lower dust, noise, and traffic impacts, which can facilitate permitting and community acceptance.
Next Steps and Market Positioning
Axel plans to extend leaching assays and drilling at the Woolrich ISL Target to better define zones of higher soluble TREO grades and favorable magnet rare earth assemblages. A Mineral Resource Estimate for Area B is expected by December 2025, which will underpin further metallurgical and hydrological studies.
The company’s strategic focus on Brazil, a country with the third-largest rare earth reserves globally, combined with the promising initial results, positions Axel as a potential future supplier of high-value MREC products. This is particularly timely given the global push for critical minerals to support clean energy technologies.
Bottom Line?
With promising grades and a cost-effective ISL approach, Axel REE’s Caladão Project could soon emerge as a key player in the global rare earths market.
Questions in the middle?
- How will Axel’s upcoming Mineral Resource Estimate influence project financing and development timelines?
- What are the potential environmental permitting challenges for ISL mining in Brazil’s Lithium Valley?
- How does Axel’s magnet-rich MREC product compare in market demand and pricing to established Asian suppliers?