Brazilian Critical Minerals has reported significant progress at its Ema rare earths project, producing a high-grade rare earth carbonate rich in critical magnet metals and advancing key drilling, permitting, and feasibility milestones.
- Produced 52.5% TREO mixed rare earth carbonate with 41.5% magnet rare earth oxides
- Drilling confirms thick, high-grade mineralisation with elevated NdPr and DyTb
- Two trial mining licence applications under review by Brazilian regulators
- Bankable feasibility study approximately 70% complete, targeting early 2026
- Raised A$6 million to fund project advancement and engaged global offtake partners
High-Grade Rare Earth Production
Brazilian Critical Minerals Ltd (ASX, BCM) has delivered a major technical milestone at its Ema rare earths project in Brazil’s Apuí region, producing a high-grade mixed rare earth carbonate (MREC) containing 52.5% total rare earth oxides (TREO). Notably, the MREC boasts an exceptional 41.5% content of magnet rare earth oxides (MREO) – including neodymium, praseodymium, dysprosium, and terbium – which are critical for permanent magnets used in electric vehicles and renewable energy technologies.
This product, generated through low-cost in-situ recovery (ISR) processing and tested by Australia’s ANSTO, positions Ema as one of the highest quality magnet rare earth deposits outside China. The clean, low-impurity profile of the MREC is expected to simplify downstream refining and enhance commercial value.
Drilling and Resource Expansion
During the quarter, BCM reported assay results from 24 drill holes, confirming thick mineralised zones with elevated grades of NdPr and DyTb near the base of the weathered profile. These zones are ideal for ISR extraction and suggest potential to expand the current Mineral Resource Estimate (MRE) of 943 million tonnes at 716 ppm TREO, with 248 million tonnes classified as Indicated.
The increasing proportion of heavy rare earth elements (HREEs) such as dysprosium and terbium towards the saprock layer enhances the project’s economic potential, given the premium value of these metals.
Permitting and Community Support
BCM has submitted two trial mining licence applications to Brazil’s Agência Nacional de Mineração (ANM), which are currently under review by dedicated task forces. The company also presented its final exploration report and is preparing a full mining application incorporating a revised MRE and the upcoming Bankable Feasibility Study (BFS).
Strong municipal and state-level support was demonstrated through recent community events and government engagement, including backing from local parliamentarians and environmental authorities. BCM is actively working to finalise landowner agreements, a critical step for project development.
Bankable Feasibility Study and Offtake Progress
The BFS is approximately 70% complete, with key engineering design packages finalised. The study largely follows the positive scoping study from early 2025 but is also evaluating cost reduction initiatives and tailored product specifications requested by potential offtake partners.
BCM continues to engage with multiple global parties, distributing MREC samples for qualification testing in the US, Europe, and Asia. Conditional offtake agreements are progressing, contingent on BFS completion, regulatory approvals, financing, and product qualification.
Innovative Processing and Environmental Stewardship
In collaboration with Rare Earth Technologies Inc (RETi) in the US, BCM has demonstrated a proprietary processing method that concentrates rare earth elements 200-fold, achieving 18.6% TREO-Ce with 99.9% purity for individual oxides. This technology promises to reduce capital and operating costs by eliminating traditional solvent extraction steps.
Environmental restoration following ISR leaching trials showed successful rebalancing of clay chemistry, with magnesium and other elements returning to natural background levels after controlled water washing. This supports the project’s environmental credentials and regulatory compliance.
Capital and Legal Update
To fund ongoing development, BCM raised A$6 million through a well-supported placement to institutional investors. The company ended the quarter with A$6.76 million in cash.
However, BCM disclosed a legal writ from its largest shareholder, Drake Private Investments, alleging breaches related to share issuance and pricing. The outcome of this dispute remains uncertain and warrants close attention.
Bottom Line?
As BCM nears BFS completion and regulatory approvals, the Ema project’s rare earths promise faces both exciting opportunities and legal uncertainties.
Questions in the middle?
- How will the legal writ from Drake Private Investments impact BCM’s financing and project timelines?
- What are the final outcomes of the trial mining licence applications and full permitting process?
- Can BCM secure binding offtake agreements and project financing to support a Final Investment Decision?