Axel REE Accelerates ISR Mining Trials with Gallium Edge in Brazil

Pioneering ISR Field Trial Set to Unlock Brazil’s Lithium Valley Potential

Axel REE (ASX:AXL) is moving swiftly towards commercialising in situ recovery (ISR) mining at its Caladão Project, aiming to disrupt traditional rare earth element (REE) extraction with a faster, cleaner, and more modular approach. The company is gearing up to commence pilot wellfield trials at the Woolrich deposit, a key milestone that could validate the economic and environmental advantages of ISR technology in Brazil’s emerging Lithium Valley.

ISR mining, widely proven in Asia since the 1990s, involves leaching rare earths directly from ionic clays without conventional open-pit mining or crushing. Axel REE’s application of this method promises significantly lower capital expenditure and a reduced environmental footprint compared to conventional open pit or heap leach operations. This approach is particularly timely given the growing global demand for critical minerals sourced outside China.

Caladão’s Resource Growth and Metallurgical Validation

The Caladão Project boasts a substantial inferred mineral resource estimate of 572 million tonnes at 1,506 ppm total rare earth oxides (TREO), containing 861,000 tonnes of TREO. Notably, soluble TREO grades at Woolrich reach up to 464 ppm, comparable to operating ISR mines such as Malaysia’s Gerik, which has achieved commercial success with a market valuation exceeding A$200 million. Axel REE’s mineral assemblage is rich in magnet rare earth oxides (MREO), including neodymium-praseodymium (NdPr) and dysprosium-terbium (DyTb), critical for permanent magnets in electric vehicles and renewable energy technologies.

Metallurgical testwork led by ANSTO has confirmed encouraging recovery pathways not only for rare earths but also for gallium and scandium, adding a multi-commodity dimension to the project. This is particularly significant as Axel REE hosts Brazil’s only defined primary gallium resource; one of the largest globally; positioning the company as a potential non-Chinese supplier of this critical technology metal, which is essential for defense, solar energy, and next-generation semiconductors.

Strategic Roadmap: Modular Pods and Scalable Growth

The company’s development plan is structured around a “pod” implementation model starting with pilot wellfields at Woolrich. This phased approach aims to deliver 100-300 tonnes of rare earth oxides per year initially, scaling up to steady-state production of up to 1,500 tonnes per pod. The modular design allows for incremental expansion with minimal upfront capital, a stark contrast to the large, fixed infrastructure required in traditional mining.

Axel REE is fully funded with A$7.1 million cash on hand as of December 2025, supporting the upcoming field trials and ongoing metallurgical optimisation. This financial position underpins the company’s accelerated timeline to generate real-world data on reagent consumption, recovery rates, and environmental performance; critical inputs for advancing feasibility studies and securing offtake partnerships.

The company’s strategy also includes significant expansion potential at the Paraíso and Tiger Creek deposits, where grade-thickness values and soluble TREO percentages surpass typical commercial benchmarks for ionic clay ISR operations. These deposits offer a robust pipeline for future wellfield development beyond the initial Woolrich pilot.

Positioning Amid Global Supply Chain Shifts

Axel REE’s ISR approach and unique gallium resource come at a time when Western markets are intensifying efforts to diversify critical minerals supply chains away from China. The company’s focus on low-impact, scalable ISR mining aligns with increasing regulatory and environmental scrutiny worldwide. Its leadership team, including Chairman Paul Dickson and founder Pat Volpe, brings decades of expertise in capital markets and mineral exploration, bolstering confidence in execution.

Recent developments, such as the selection of Woolrich for the inaugural field trial, have been detailed in the company’s pilot wellfield trial plan, underscoring progress toward operational validation. This trial is expected to yield pregnant leach solutions for downstream processing and customer testing, a critical step in de-risking the project’s economic model.

While the ISR pathway is promising, it remains conceptual at this stage, relying on bench leach tests and pending field trial outcomes. Resource estimates are currently inferred, and the company must navigate permitting and environmental approvals in Brazil’s Minas Gerais state. Nonetheless, Axel REE’s approach offers a compelling alternative to traditional REE mining, with potential to accelerate supply of key materials vital to the clean energy transition.