Core Energy Targets 5,000ppm TREO Anomalies in Brazil’s Itambe Project

• Exploration commenced at 100% owned Itambe REE Project in Bahia, Brazil
• Focus on expanding high-grade soil anomalies identified by Rio Tinto
• Initial auger drilling campaign to test regolith profiles and generate drill targets
• Parallel exploration activities planned at Tunas and Campo Largo projects
• Maiden drilling targeted for Q2 2026 following Q1 target definition

Exploration Kickoff in a Tier 1 Rare Earth Province

Core Energy Minerals Limited (ASX, CR3) has officially commenced on-ground exploration at its Itambe Rare Earth Element (REE) Project in Bahia State, Brazil. This project, acquired from Rio Tinto in December 2025, sits within the highly prospective Rocha da Rocha Rare Earth Province, a region already known for world-class hard rock and ionic REE deposits, including the recent Sulista discovery by Brazilian Rare Earths.

The Itambe Project covers an extensive 317 square kilometres, with previous Rio Tinto exploration identifying significant high-grade soil anomalies; some exceeding 5,000 ppm total rare earth oxides (TREO); across roughly 7% of the tenement area. These anomalies remain open in all directions, presenting a compelling opportunity for Core Energy to expand and better understand the mineralisation.

Systematic Exploration Strategy and Early-Stage Drilling

Core Energy’s initial exploration phase is fully funded and focuses on expanding these existing anomalies through detailed soil sampling and auger drilling. The company plans approximately 40 auger holes totaling 400 metres across five traverses to probe the regolith profile beneath the high-grade surface anomalies. This approach aims to clarify the distribution of REEs in the subsurface clays, provide samples for preliminary metallurgical leach recovery testwork, and generate robust drill targets for the maiden drilling campaign slated for the second quarter of 2026.

In parallel, Core Energy will advance exploration at its Tunas and Campo Largo projects in southern Brazil. At Tunas, infill auger drilling will test the continuity and thickness of weathered saprolitic clays that have already yielded encouraging REE grades. Meanwhile, Campo Largo will undergo reconnaissance geological mapping and rock sampling to assess its REE potential, particularly given its intrusive rock signatures and elevated uranium-thorium-potassium anomalies.

Technical Rigor and Forward Outlook

The announcement is supported by comprehensive JORC-compliant technical data detailing sampling techniques, assay methods, and tenement status. While early-stage exploration results are preliminary and lack full QA/QC protocols, Core Energy has committed to implementing rigorous quality controls in subsequent phases. The company’s Managing Director, Tony Greenaway, emphasised the strategic importance of these projects, highlighting the team’s operational expertise in Bahia and the systematic approach to unlocking value through methodical exploration.

With drill targets to be defined in the first quarter of 2026 and drilling to commence shortly after, Core Energy is positioning itself to make significant strides in Brazil’s critical minerals sector. The Itambe Project’s location in a Tier 1 mining jurisdiction, combined with its large landholding and promising early results, underscores its potential to become a key player in the global rare earth supply chain.

Bottom Line?

As Core Energy advances from soil anomalies to drilling, the coming months will be pivotal in defining the project’s true potential and shaping its future in the rare earths market.

Questions in the middle?

• Will the maiden drilling confirm continuity and economic grades of rare earth mineralisation at Itambe?
• How will metallurgical testwork influence the project’s development pathway and processing methods?
• What are the timelines and regulatory hurdles for advancing exploration and potential mining in Bahia State?