Magnum Mining has confirmed that its Piracanjuba Prospect hosts an Ionic Adsorption Clay rare earth element system, revealing high recoveries of strategic metals under mild leaching conditions. This discovery could pave the way for a large-scale, low-cost rare earth operation in Brazil’s Azimuth REE Project.
- Ionic Adsorption Clay (IAC) REE mineralisation confirmed at Piracanjuba Prospect
- Desorption recoveries up to 75% Total Rare Earth Oxides (TREO) and 94% Magnetic REOs (MREO)
- Heavy rare earth elements preferentially recovered, enhancing strategic value
- Expansion of auger drilling to delineate lateral extent within an 85km² radiometric anomaly
- Azimuth REE Project covers 72 tenements over 1,201 km² along a major Brazilian crustal lineament
Discovery Confirmation and Significance
Magnum Mining and Exploration Limited (ASX: MGU) has announced a significant technical milestone at its Piracanjuba Prospect in Brazil, confirming the presence of an Ionic Adsorption Clay (IAC) rare earth element (REE) system. This confirmation follows desorption test work demonstrating strong recoveries of up to 75% for Total Rare Earth Oxides (TREO) and an exceptional 94% for Magnetic Rare Earth Oxides (MREO) under mild leaching conditions. The results underscore the potential for economically extracting high-value rare earths, particularly heavy rare earth elements (HREO), which are critical for advanced technologies and green energy applications.
Why Ionic Adsorption Clay Matters
IAC deposits are prized for their relatively simple and low-cost extraction process. Unlike traditional hard rock or mineral-bound REE deposits that require energy-intensive roasting and acid digestion, IAC deposits allow rare earths to be desorbed from clay surfaces using mild salt solutions at ambient temperature and pressure. This not only reduces processing costs but also lowers environmental impact, a growing concern in the mining sector. Magnum’s test results, showing recoveries significantly higher than typical IAC operations (which average around 25%), suggest a highly efficient system that could position the Piracanjuba Prospect as a standout asset.
Expanding Exploration and Project Potential
The discovery lies within a broad 85 square kilometre radiometric anomaly identified through airborne geophysical surveys, indicating the possibility of a large-scale deposit. Magnum is accelerating its auger drilling program at the Piracanjuba North target to map the lateral continuity of this mineralisation. The company’s Azimuth REE Project spans 72 granted tenements covering over 1,200 square kilometres across Goiás and Minas Gerais states, strategically located along the Azimuth 125° Lineament; a major crustal feature known for hosting significant mineralisation.
Strategic Implications and Next Steps
Magnum’s Chairman, Michael Davy, highlighted the importance of confirming the ion-exchangeable component, which validates the classification of the mineralisation as a true IAC system. The preferential recovery of magnetic and heavy rare earth oxides is particularly encouraging given their scarcity and strategic importance. The company plans further metallurgical optimisation, including testing at higher pH levels and shorter leaching times, which could enhance the economic viability of the project. Additionally, bulk sampling and ongoing drilling across 19 high-priority prospects within the Azimuth project are underway, signalling a robust exploration pipeline.
Context in the Global Rare Earth Landscape
Globally, IAC deposits are predominantly found in southern China, where they supply a significant portion of the world’s heavy rare earths. Magnum’s discovery represents one of the few confirmed IAC occurrences outside China, potentially positioning Brazil as a new player in this critical supply chain. With increasing demand for rare earths driven by electric vehicles, renewable energy, and defence technologies, the Azimuth REE Project could attract considerable attention from investors and strategic partners.
Bottom Line?
Magnum’s confirmation of a high-recovery Ionic Adsorption Clay system at Piracanjuba sets the stage for a potentially transformative rare earth project in Brazil.
Questions in the middle?
- What will further metallurgical optimisation reveal about recovery rates and processing costs?
- How extensive and continuous is the IAC mineralisation across the broader 85km² anomaly?
- What are the timelines and capital requirements for advancing the Piracanjuba Prospect towards development?