Gold Mountain Limited has reported strong assay results from diamond drilling at its Irajuba IR-1 prospect in Brazil, extending known rare earth mineralisation beyond previous targets with notably high magnet rare earth oxide content.
- 11 diamond drill holes confirm extension of rare earth mineralisation
- Best intersection – 39m @ 2,002 ppm TREO with 40.4% MREO average
- High-grade magnet rare earth oxides indicate premium deposit quality
- Ongoing drilling and permit applications for expanded resource definition
- Metallurgical testing underway to evaluate extraction methods
Expanding the Irajuba IR-1 Rare Earth Opportunity
Gold Mountain Limited (ASX, GMN) has delivered a promising update from its Irajuba IR-1 prospect in Brazil, announcing assay results from 11 diamond drill holes that extend the known rare earth element (REE) mineralisation beyond the previously defined exploration target. The latest drilling has intersected thick zones of mineralisation, with the standout result being a 39-metre interval grading 2,002 parts per million total rare earth oxides (TREO), accompanied by an impressive 40.4% average magnet rare earth oxide (MREO) ratio.
This high proportion of magnet rare earth oxides is particularly significant, as these elements; such as neodymium and praseodymium; are critical for high-performance magnets used in electric vehicles and renewable energy technologies. The quality of the mineralisation positions Gold Mountain’s Irajuba project favourably against other global REE deposits.
Technical Rigor and Exploration Confidence
The company’s drilling program employed HQ diameter diamond core drilling, ensuring high-quality samples for detailed geological logging and assay analysis. The sampling and assay methods, including lithium borate fusion and ICP-MS analysis conducted at ALS laboratories in Brazil and Peru, adhere to industry standards, providing confidence in the reported grades.
Importantly, the drilling targeted areas south of the initial exploration target, confirming that mineralisation extends beyond earlier estimates. The intersections reported are based on a conservative cutoff grade of 400 ppm TREO, with some intervals significantly exceeding this threshold. The mineralisation occurs primarily within saprolite and saprock zones, typical for ion-adsorbed clay type REE deposits, which are often amenable to lower-cost extraction methods.
Looking Ahead, Drilling and Metallurgical Testing
Gold Mountain is actively pursuing further drilling at Irajuba IR-1 and is seeking permits to expand resource drilling to adjacent targets IR-2, IR-5, and IR-8. The company has also completed auger drilling over high-grade stream sediment anomalies nearby, with results under interpretation.
Crucially, metallurgical test work is underway to assess the recovery of rare earth elements and evaluate the potential for in-situ leaching extraction methods, which could offer economic advantages. The outcome of these tests will be pivotal in determining the project's commercial viability and guiding future development strategies.
Executive Director David Evans highlighted the significance of these results, noting the exceptional grade and scale potential of the project, and expressed optimism about the broader portfolio of REE prospects held by Gold Mountain in Brazil and Papua New Guinea.
Strategic Positioning in a Critical Minerals Market
Gold Mountain’s Irajuba project sits within a growing global focus on securing supply chains for critical minerals essential to the green energy transition. The combination of high-grade mineralisation, favourable metallurgy, and ongoing exploration success enhances the company’s profile in the competitive REE sector.
While the true widths of mineralisation are approximated and metallurgical results remain pending, the current data supports a robust outlook for resource expansion and eventual development. Investors and analysts will be watching closely as Gold Mountain advances its drilling and testing programs.
Bottom Line?
Gold Mountain’s Irajuba IR-1 results reinforce its rare earth credentials, but metallurgical outcomes will be key to unlocking value.
Questions in the middle?
- How will metallurgical test results impact the feasibility of in-situ leaching extraction?
- What are the timelines and prospects for permit approvals for expanded drilling at Irajuba?
- How might these results influence Gold Mountain’s resource estimates and market valuation?