Axel REE Limited reports a remarkable 145% increase in rare earth elements and 339% gallium resource growth at its Caladão Project, alongside a metallurgical breakthrough that could slash development costs through in-situ leaching.
- 145% increase in rare earth elements and 339% gallium resources at Caladão
- Maiden Mineral Resource Estimate for Area B expands total resource to 572Mt
- Breakthrough low-cost in-situ leach (ISL) metallurgical results at Woolrich target
- New exploration licences and drilling programs extend resource potential
- Strong cash position of $7.1 million supports ongoing development
Significant Resource Expansion at Caladão
Axel REE Limited has delivered a substantial upgrade to its flagship Caladão Rare Earth Elements (REE) and gallium project in Brazil, reporting a 145% increase in REE resources and a staggering 339% growth in gallium. This follows the maiden Mineral Resource Estimate (MRE) for Area B, which added 339 million tonnes at 1,075 parts per million total rare earth oxides (TREO) and 36.6 ppm gallium. Combined with the existing Area A resource, the total inferred resource now stands at 572 million tonnes at 1,506 ppm TREO, positioning Caladão as one of the world’s largest ionic clay REE and primary gallium deposits.
Metallurgical Breakthrough Promises Lower Costs
Perhaps more compelling than the resource growth is the metallurgical progress at the Woolrich in-situ leach (ISL) target within Area B. Testing revealed strong amenability to magnesium sulphate leaching, achieving soluble TREO grades comparable to the operating Gerik ISL mine in Malaysia. Notably, the leachate contains a high proportion of magnet rare earth oxides (MREO), including neodymium and praseodymium, which are critical for high-tech applications. This breakthrough suggests the potential for a low-capital expenditure, low-operating cost development model that could significantly reduce the environmental footprint and financial barriers typically associated with REE mining.
Exploration Upside and Strategic Expansion
Axel has also expanded its exploration footprint with the granting of three new licences adjacent to Area A, covering approximately 867 hectares. A 49-hole auger drilling program is underway to delineate further gallium-rich laterites and REE-enriched saprolite, aiming to build on the already impressive resource base. Meanwhile, at the Caldas REE Project in Minas Gerais, auger drilling has confirmed broad near-surface REE mineralisation across multiple prospects, reinforcing the district-scale potential of this alkaline complex.
Corporate Strength and Governance
Financially, Axel REE remains well-positioned with $7.1 million in cash at the end of December 2025, supporting its aggressive exploration and development programs. The company also strengthened its board with the appointment of Aidan Nania as a Non-Executive Director, bringing valuable corporate and resources sector experience. Additionally, 1.5 million performance rights vested during the quarter, reflecting the achievement of key milestones, including the significant resource upgrades.
Looking Ahead
With ongoing drilling, metallurgical testwork, and feasibility studies advancing, Axel REE is carving a clear path toward commercialising its Caladão project via innovative in-situ recovery methods. The company’s approach aims to deliver a modular, low-impact mining operation that could set new standards in the critical minerals sector. Investors and industry watchers will be keenly awaiting further assay results and pilot trial outcomes that will validate the economic viability of this promising resource.
Bottom Line?
Axel REE’s resource surge and metallurgical advances at Caladão set the stage for a potentially transformative low-cost REE operation.
Questions in the middle?
- How will ongoing metallurgical and hydrogeological studies refine the feasibility of in-situ leaching at Caladão?
- What impact will the expanded resource base have on Axel REE’s valuation and financing options?
- Can the company replicate Caladão’s success at the Caldas Project to build a diversified REE portfolio?