Exploration Target Validation at Irajuba Raises Questions on Resource Scale and Extraction

Strong Drill Results Reinforce Irajuba's Potential

Gold Mountain Limited (ASX, GMN) has delivered a compelling update from its Irajuba IR-1 prospect in Brazil, announcing high-grade diamond drill results that confirm an Exploration Target of 40 to 45 million tonnes grading between 1,200 and 1,400 parts per million (ppm) Total Rare Earth Oxides (TREO). The standout feature of these results is the remarkably high average Magnet Rare Earth Oxides (MREO) content of 49.6%, a metric that underscores the quality and economic promise of the mineralisation.

The drilling program, comprising 41 completed holes with two more being deepened, has systematically tested a previously defined Exploration Target range of 30 to 50 million tonnes at 1,100 to 1,600 ppm TREO. The results not only fall comfortably within this range but also highlight exceptional intersections, including a 31-metre section grading 5,030 ppm TREO with over 50% MREO/TREO, and a high-grade 10.24-metre interval at 11,861 ppm TREO.

Methodical Approach and Geological Insights

Gold Mountain’s approach has been meticulous, employing HQ diameter diamond drilling to recover high-quality core samples. The company has applied a polygonal estimation method to reconcile drilling data with geological models, ensuring a balanced interpretation that mitigates the influence of outlier grades. This method, supported by density profiling and detailed core logging, has provided a robust conceptual estimate of the mineralised tonnage and grade.

The mineralisation is predominantly ion adsorbed clay (IAC) hosted, a style prized for its amenability to lower-impact extraction methods such as in-situ leaching. This focus aligns with Gold Mountain’s strategic emphasis on sustainable and efficient rare earth element (REE) recovery. The high proportion of magnet rare earth oxides, which include neodymium and praseodymium critical for permanent magnets, positions the project favourably within the global REE supply chain.

Looking Ahead, Expansion and Resource Definition

Gold Mountain is actively expanding its drilling activities at Irajuba IR-1 and pursuing permits for additional resource drilling at adjacent targets IR-2, IR-5, and IR-8. Complementary exploration techniques such as auger drilling and regional stream sediment sampling are underway to delineate further high-grade zones. Metallurgical testing is in progress, aiming to validate recovery processes and assess the feasibility of in-situ leaching, which could enhance project economics and environmental credentials.

Executive Director David Evans expressed optimism about the project’s trajectory, highlighting the clarity of upside potential and the company’s commitment to delivering a mineral resource estimate by the end of 2026. This timeline sets a clear milestone for investors and stakeholders to monitor as Gold Mountain advances its rare earth ambitions.

Strategic Implications for Rare Earth Supply

In a market increasingly focused on securing reliable sources of critical minerals, Gold Mountain’s Irajuba project stands out for its scale, grade, and high-value magnet rare earth content. The results reinforce Brazil’s emerging role as a significant player in the REE sector, complementing global efforts to diversify supply chains beyond traditional producers. While the Exploration Target remains conceptual pending further validation, the current data provides a strong foundation for Gold Mountain’s next phase of development.