Gold Mountain Uncovers High-Grade Rare Earths at Capivara Prospect
Gold Mountain Limited has announced a significant rare earth element discovery at its Capivara Prospect in Brazil, revealing strong mineralisation from surface and plans for resource drilling.
- New high-grade rare earth discovery at Capivara Prospect
- Best intersection: 13m @ 1,561 ppm TREO with 40% magnet rare earth oxides
- Mineralisation starts from surface and remains open at depth
- Resource diamond drilling planned to test deeper zones
- Metallurgical testing underway to confirm mineralisation type
Discovery Highlights
Gold Mountain Limited (ASX: GMN) has expanded its rare earth element (REE) portfolio with a new discovery at the Capivara Prospect, part of its Down Under Project in Brazil. Recent assay results from 29 auger drill holes have confirmed high-grade mineralisation starting from surface, with the standout intersection measuring 13 metres at 1,561 parts per million (ppm) total rare earth oxides (TREO), including a substantial 40% magnet rare earth oxides (MREO) component.
The magnet rare earths, critical for high-tech and clean energy applications, reached ratios as high as 52.4% of the TREO, underscoring the quality of the mineralisation. Notably, neodymium and praseodymium oxides, key elements in permanent magnets, were detected at concentrations up to 498 ppm.
Geological Context and Drilling Insights
The mineralisation was intercepted from surface in most holes and remains open at depth, suggesting significant upside potential. However, the shallow auger drilling was limited by duricrust layers, which prevented full penetration into the underlying saprolite-hosted mineralisation. Geological interpretation indicates that the saprolite zone, the primary horizon for rare earth accumulation, was not fully tested, with chemical alteration indices confirming drilling stayed within the mineralised profile.
A fault zone appears to offset mineralisation by nearly 10 metres in some areas, with deeper mineralisation indicated by halo alteration zones detected in several drill holes. These findings support the planned transition to diamond drilling, which will allow more detailed and deeper resource definition.
Metallurgical Testing and Future Plans
Samples have been submitted to the Australian Nuclear Science and Technology Organisation (ANSTO) for acid in-situ leaching tests to determine if the mineralisation is of the ionic adsorption clay (IAC) type, which is highly sought after for its relatively low-cost extraction. Preliminary laboratory results are encouraging, and comparable nearby projects with similar geology host confirmed IAC-style mineralisation, bolstering confidence in the deposit’s potential.
Gold Mountain has initiated resource drilling permits for Capivara North and awaits additional assay results from Capivara South. The company is accelerating its exploration efforts to advance Capivara as a key rare earth asset within its broader Down Under portfolio, which already includes lithium and copper projects in Brazil.
Strategic Implications
This discovery significantly enhances Gold Mountain’s rare earth footprint at a time when global demand for these critical minerals is intensifying. The high magnet rare earth content and near-surface mineralisation could position Capivara as an attractive development opportunity, subject to further drilling and metallurgical confirmation. Environmental considerations remain important, given some tenements overlap with protected areas requiring careful permitting and impact assessments.
Bottom Line?
Capivara’s promising assay results set the stage for deeper drilling and could reshape Gold Mountain’s rare earth prospects in Brazil.
Questions in the middle?
- Will diamond drilling confirm the depth and continuity of high-grade mineralisation?
- How will metallurgical test results influence the economic viability of the Capivara deposit?
- What are the potential environmental and permitting challenges given the proximity to protected areas?
