Core Energy Acquires 32,791ha Itambe Project Featuring 5,123ppm TREO Soil Assays

• Acquisition of 100% Itambe Rare Earth Project from Rio Tinto for US$200,000 plus 1.75% NSR royalty
• Project covers 32,791 hectares across 23 tenements in Bahia State, Brazil
• Soil assays show peak TREO values up to 5,123ppm with extensive anomalous zones
• Located in the prolific Rocha da Rocha Rare Earth Province, near other world-class deposits
• Planned systematic exploration includes geological mapping, geochemical sampling, airborne geophysics, and auger drilling

Strategic Acquisition in a Tier 1 Rare Earth District

Core Energy Minerals Ltd (ASX, CR3) has entered into a binding agreement to acquire the Itambe Rare Earth Element Project from Rio Tinto, marking a significant expansion of its footprint in Brazil’s burgeoning rare earth sector. The project, spanning 32,791 hectares across 23 granted tenements in Bahia State, offers a district-scale opportunity in a well-regarded mining jurisdiction with supportive infrastructure and government.

Located within the highly prospective Rocha da Rocha Rare Earth Province, the Itambe project benefits from proximity to notable discoveries such as the Sulista deposit by Brazilian Rare Earths. Core Energy’s Managing Director, Tony Greenaway, highlighted the project’s compelling geochemical signature, with soil sampling revealing total rare earth oxide (TREO) concentrations peaking at 5,123ppm and extensive anomalous zones remaining open in all directions.

From Lithium Target to Rare Earth Focus

Originally explored by Rio Tinto for lithium, the Itambe tenure was subject to preliminary geochemical sampling and a limited auger drilling program covering only 7% of the area. These early efforts uncovered three distinct zones of high-grade rare earth anomalism, with the largest anomaly extending over 5 kilometers by 2 kilometers at TREO values exceeding 1,500ppm. Core Energy intends to pivot the exploration focus towards rare earth elements, leveraging its existing operational expertise and geological team in the region.

The project’s geology features a metasedimentary-gneissic basement intruded by granites and pegmatites, with weathering processes producing a thick saprolitic profile enriched in rare earth elements. The correlation between soil geochemistry and airborne radiometric data suggests surface concentration of heavy minerals, providing a promising exploration model for ionic adsorbed clay-style rare earth mineralisation.

Comprehensive Exploration Program Planned

Core Energy plans a systematic exploration campaign to delineate and expand the known anomalies. This will include detailed geological and structural mapping, extensive surface geochemical sampling, and airborne geophysical surveys employing magnetics, gravity, and radiometric techniques. Following these steps, the company will undertake systematic auger drilling to test targets and refine the understanding of mineralisation controls.

The acquisition terms include a modest upfront cash payment of US$200,000 and a 1.75% net smelter return royalty, reflecting the early-stage nature of the project. All due diligence has been completed satisfactorily, and the transaction awaits customary regulatory approvals in Brazil.

Complementing Existing Assets and Market Position

The Itambe project complements Core Energy’s existing Tunas Rare Earth Element project in southern Brazil, where recent auger drilling has also returned encouraging high-grade TREO results. Together, these assets position Core Energy as a growing player in the critical minerals space, with a focus on rare earths essential for clean energy technologies and advanced electronics.

While the exploration results to date are promising, they remain early stage with limited drilling and no formal quality control protocols yet implemented. The company’s next steps will be critical in validating the mineralisation potential and advancing the project towards resource definition.

Bottom Line?

Core Energy’s acquisition of Itambe sets the stage for a focused exploration push in a premier Brazilian rare earth district, with early results hinting at significant upside potential.

Questions in the middle?

• What will initial drilling programs reveal about the depth and continuity of rare earth mineralisation at Itambe?
• How will Core Energy integrate Itambe’s exploration data with its existing Tunas project to optimise resource development?
• What regulatory hurdles remain in Brazil, and how might they impact the project’s timeline and economics?