Brazilian Rare Earths Confirms Ultra High-Grade Growth and Processing Breakthroughs at Monte Alto

Monte Alto Delivers World-Class Rare Earth Grades

Brazilian Rare Earths Limited (ASX:BRE) has expanded its Monte Alto project in Bahia, Brazil, with drilling results confirming it as a globally significant ultra high-grade rare earth discovery. The latest assays reveal exceptional grades, including intercepts of up to 35.3% total rare earth oxides (TREO), with wide, continuous mineralised zones such as 27.6 metres at 19.4% TREO and cumulative true thicknesses reaching 43 metres. These results underpin a robust geological continuity across a strike length of approximately 700 metres and depths exceeding 250 metres, with mineralisation remaining open for expansion.

Notably, the mineralisation includes critical co-enrichment of niobium, scandium, tantalum, and uranium, enhancing the project's strategic value. The discovery of a new parallel ultra high-grade corridor east of the existing footprint, with intercepts like 9.8 metres at 20% TREO, further bolsters Monte Alto’s scale and grade intensity. The strike extension northwards by 350 metres to over 1.2 kilometres, supported by auger drilling and geophysical data, signals significant exploration upside. This progress follows the earlier Monte Alto’s ultra-high-grade drilling results that first highlighted the project’s potential.

Processing Advances Promise Lower Costs and High Recoveries

BRE has validated a low-temperature acid-cure hydrometallurgical process at 150°C, achieving a rare earth extraction rate of 97% in a 15 kg composite scale-up test. This approach avoids the high energy and capital intensity of conventional processing routes that require temperatures above 250°C and rotary kilns. The simplified flowsheet using standard paddle mixers is expected to reduce operating expenses and capital requirements, while delivering strong scalability.

Complementing this, sensor-based ore sorting trials using STEINERT’s multi-sensor platform demonstrated grade enrichment of over 100%, increasing feed grades from 12.4% TREO to 27% TREO in a single pass, with yields exceeding 95%. The sorting process efficiently rejects approximately 25% of waste with negligible rare earth loss, reducing downstream processing volumes and environmental impact. Together, these innovations underpin a potentially lower-cost, environmentally friendly beneficiation and processing pathway for Monte Alto's coarse-grained mineralisation.

Trial Mining Licence Secured to Support Commercial Advancement

In a key regulatory milestone, BRE secured a Trial Mining Licence from Brazil’s National Mining Agency (ANM) authorising up to 2,000 tonnes per annum of direct-ship product from Monte Alto. This licence enables the company to produce bulk shipments for customer offtake evaluation and metallurgical testing, advancing commercial engagement. Trial mining will also support commissioning of BRE’s fully permitted pilot plant at the Camaçari Petrochemical Complex, on track to begin operations in Q3 2026.

The licence aligns with BRE’s strategy for a low-impact, quarry-scale development featuring dry processing, high-yield ore sorting, minimal water use, and no tailings dams. The company plans to submit an Economic Development Plan to ANM in Q2 2026, the next critical step toward a full mining concession for commercial production. These developments follow the recent Monte Alto Trial Mining Licence update that outlined the pathway toward scaled operations.

Sulista District Extends Rare Earths Footprint to 17 Kilometres

BRE’s Sulista project, approximately 80 km from Monte Alto, has doubled its strike length to over 17 kilometres, revealing multiple high-grade mineralised corridors. Sulista East remains the anchor deposit with over 1,000 metres of drill-tested strike and vertical continuity exceeding 230 metres. Step-out drilling at Sulista East and Outcrop Ridge has confirmed broad zones of mineralisation with grades up to 16.7% TREO, including critical minerals.

The emergence of Sulista South as a major southern extension and Sulista North as a new exploration front adds significant scale to the district. A new +10,000 metre diamond drilling program is underway to test these growth areas. This expansion supports BRE’s hub-and-spoke development model integrating multiple deposits with the planned refinery hub at Camaçari, aiming to leverage existing infrastructure and reduce logistics complexity.

Strategic Acquisition Broadens Regional Portfolio

BRE completed the acquisition of the Água Verde Project, securing a 100% interest in four additional tenements south of its existing holdings. The A$5 million deal, settled via share issuance, extends BRE’s control over the Volta do Rio Plutonic Suite, a highly prospective geological corridor for rare earth and critical minerals. Access to historical exploration data will accelerate target refinement and drilling programs, enhancing the company’s regional footprint and resource pipeline.

With a strong cash position of A$147 million and quarterly exploration expenditures of A$11.6 million, BRE is well-funded to advance its exploration, resource definition, and development milestones. The company targets mid-2026 for JORC-compliant Mineral Resource Estimates and Scoping Studies for both Monte Alto and Sulista, setting the stage for future growth and potential production ramp-up.