Magnum Mining & Exploration has accelerated its rare earth elements (REE) exploration with new drilling programs in Brazil and the acquisition of the Wet Mountains REE Project in Colorado, backed by a $7 million capital raise.
- Drilling underway at Palmares and Azimuth REE Projects in Brazil
- Acquisition of Wet Mountains REE Project with historic assays up to 7.99% TREE
- Completion of ultra-high resolution geophysical surveys over Arizona gold-copper projects
- Binding MoU signed to develop advanced REE separation technology
- Oversubscribed $7 million capital raise to fund US-focused critical minerals strategy
Brazilian REE Projects Gain Momentum
Magnum Mining & Exploration Ltd (ASX, MGU) has made significant strides in its rare earth elements (REE) exploration during the December 2025 quarter. The company commenced two drilling programs across its highly prospective Palmares and Azimuth REE Projects in Brazil, targeting both pegmatite-hosted and ionic clay mineralisation. Early leach testing at the Feirinha Prospect within Palmares delivered promising results, with over 1,100 ppm total rare earth oxides (TREO) extracted under mild conditions, confirming the potential for high-value magnet feedstock.
Drilling at Palmares is focused on mapping the lateral and depth extent of REE mineralisation, with 133 reverse circulation holes planned. Meanwhile, auger drilling at Azimuth targets 19 high-priority prospects, many of which represent greenfield opportunities with no prior exploration history. Initial samples from Azimuth have been sent for assay, with results expected in early February 2026.
Strategic US Expansion with Wet Mountains Acquisition
In a move to strengthen its US critical minerals footprint, Magnum acquired the Wet Mountains REE Project in Colorado. The project boasts historic surface assays reaching up to 7.99% TREE, including significant heavy REE components such as praseodymium and neodymium. Hosted in carbonatite intrusives, the geology aligns with globally significant REE deposits, offering multiple high-priority exploration targets. Magnum is leveraging existing aeromagnetic and radiometric data to rapidly advance drill targeting.
Advancing US Gold-Copper Projects and Processing Hub
Beyond REEs, Magnum completed ultra-high resolution airborne geophysical surveys over its Parker Gold and La Cienega Copper Projects in Arizona. These surveys, flown at low altitude with tight line spacing, revealed detailed geological features not previously mapped, setting the stage for refined exploration targeting. Concurrently, the company is progressing plans for a critical minerals processing hub at its Lovelock sites in Nevada, strategically located near key infrastructure and military stockpiling facilities. This hub aims to support domestic US supply chains for antimony and REEs.
Innovation and Capital Strengthen Growth Path
Magnum also executed a binding memorandum of understanding with Homerun Resources to jointly evaluate advanced REE separation technologies using ultra-pure silica sand. This collaboration could yield environmentally friendly and cost-effective alternatives to conventional solvent extraction methods, particularly for heavy REEs. Financially, the company bolstered its balance sheet with an oversubscribed $7 million placement, underpinning its aggressive exploration and development agenda across the Americas.
Operationally, Magnum reported a cash balance of $5.86 million at quarter-end, with exploration activities progressing within budget despite seasonal weather challenges in Brazil. The company’s strategic focus on both resource definition and downstream processing positions it well to capitalize on the growing demand for critical minerals in US and allied markets.
Bottom Line?
With drilling advancing and a high-grade US acquisition secured, Magnum is poised to shape the future of critical minerals supply, pending upcoming assay results.
Questions in the middle?
- Will assay results from Azimuth and Palmares confirm commercial-scale REE mineralisation?
- How quickly can Magnum convert the Wet Mountains project into drill-ready targets and resources?
- What impact will the REE separation technology partnership have on processing costs and environmental footprint?