Shallow Drilling Limits Irajuba REE Assessment, Deeper Targets Await Confirmation

Exploration Breakthrough at Irajuba

Gold Mountain Limited (ASX – GMN) has announced a significant advancement in its rare earth element (REE) exploration at the Irajuba Prospect, part of its Down Under Project in Brazil. The company received assay results from 89 samples across 12 auger drill holes, which have extended known mineralised zones at the IR-5 and IR-7 areas. These findings reinforce the potential for expanding the resource base in this strategically important region.

High-Grade Rare Earth Intersections

The standout result includes a 4-metre intersection grading 1,603 parts per million (ppm) Total Rare Earth Oxides (TREO) with an impressive 44.8% Magnet Rare Earth Oxides (MREO) to TREO ratio. This ratio is particularly significant as MREOs, which include neodymium and praseodymium, are critical for high-tech applications such as electric vehicle motors and wind turbines. The assays also revealed MREO percentages reaching as high as 52.1% of TREO in some holes, underscoring the quality of the mineralisation.

Geological Context and Drilling Challenges

The drilling program utilised shallow auger techniques, constrained to depths of around 11 metres due to hard ground conditions. Despite this limitation, the presence of a chemical alteration index (CIA) above 81.8% indicates that the samples were taken well within the saprolite zone; a key horizon where REE mineralisation typically accumulates. The company interprets that significant grades likely extend at depth beyond the reach of the auger drilling, a hypothesis that will be tested through ongoing and planned diamond drilling.

Strategic Expansion of Resource Drilling

Building on these encouraging results, Gold Mountain is progressing resource drilling permits not only for the IR-5 area but also for the IR-7 zone, which remains open and shows promising halo mineralisation. Diamond drilling continues at the nearby IR-1 area, while permit applications are underway to expand drilling to IR-2 and surrounding areas. This phased approach aims to delineate a larger, high-quality REE resource that could position Gold Mountain as a notable player in the global critical minerals supply chain.

Environmental and Regulatory Considerations

Gold Mountain holds 100% ownership of 136 tenements in the Down Under Project, with all permits in good standing. Some tenements overlap with state nature reserves where mining activities require environmental licensing and impact assessments. The company is navigating these regulatory frameworks carefully, balancing resource development with environmental stewardship, which will be critical as the project advances toward potential commercialisation.

Looking Ahead

With high-grade assay results confirming extensions of mineralisation and a clear strategy to expand drilling, Gold Mountain is well positioned to enhance its resource profile at Irajuba. The next phase of diamond drilling will be pivotal in confirming the depth and continuity of these rare earth deposits, potentially unlocking significant value for investors and stakeholders in the rare earth sector.