Magnum Mining Confirms Large-Scale Ionic Adsorption Clay REE Discovery in Brazil

Breakthrough Rare Earth Discovery at Piracanjuba

Magnum Mining and Exploration Limited (ASX:MGU) has unveiled a potentially game-changing Ionic Adsorption Clay (IAC) hosted rare earth element (REE) discovery at its Azimuth Project in Brazil. Drilling across the Piracanjuba Prospect, spanning an impressive ~85km² geophysical footprint, intersected REE mineralisation in all 13 holes, with some spaced up to 5km apart. Notably, standout intercepts included 12.3 metres grading 1,730ppm total rare earth oxides (TREO) from surface, and even higher-grade zones such as 3 metres at 3,282ppm TREO from 7 metres depth.

This discovery is underscored by desorption testwork revealing recoveries of up to 75% TREO and 94% medium rare earth oxides (MREO), confirming the mineralisation's amenability to mild leaching and potential economic extraction. The company describes Piracanjuba as exhibiting hallmarks of a major clay-hosted REE system with global significance potential.

In response, Magnum has launched a substantial 10,000-metre auger drilling program, designed to delineate both a JORC Exploration Target and a Mineral Resource Estimate by September and November 2026, respectively. The drilling grids include a broad 1000m x 1000m spacing to map lateral extent and a focused 200m x 200m grid over high-grade zones. This accelerated campaign aims to rapidly validate the scale and continuity of the mineralisation. The auger program is currently underway, supported by a team of five drill crews.

The initial hole locations were selected based on airborne geophysical data, which highlighted the Azimuth 125° Lineament, a structural corridor already associated with exploration success by peers such as Appia and Rainbow. The Piracanjuba Prospect comprises three targets: North, Central, and South, all showing promising results.

Magnum’s recent strategic move to appoint Brazilian mining veteran Antonio Vitor Junior as Managing Director reflects the company’s commitment to accelerating growth and exploration in-country. Mr Vitor Junior brings direct experience with IAC REE discoveries in Goiás State and a strong operational track record. His leadership is expected to drive the ambitious drilling and development plans forward. This appointment was covered in detail in the company's earlier Managing Director appointment announcement.

High-Grade Gold and Copper Targets in Arizona

Across the Americas, Magnum’s Parker Gold Project in Arizona has delivered equally compelling results. A recent ultra-high resolution aeromagnetic and radiometric survey identified four high-priority exploration targets across the Red Breccia, Eagle Nest, and NSW Detachment blocks. Surface geochemical programs have confirmed exceptional gold grades, including overlimit assays of 142g/t and 178g/t Au at Red Breccia, alongside copper grades reaching 18.35% at Eagle Nest.

These results extend mineralised corridors over a ~5km strike length, reinforcing the project's prospectivity for significant gold-copper deposits. Magnum is advancing drill permitting to follow up on these findings with first-pass drilling planned at key targets. The ongoing progress and assay confirmations were elaborated in recent releases including overlimit gold assays and high-grade gold and copper grades.

Wet Mountain REE Project Acquisition Completes U.S. Rare Earth Portfolio

Magnum also completed the acquisition of Wyoming Critical Minerals, Inc., securing the Wet Mountain REE Project in central Colorado. The project boasts historic surface assays of up to 7.99% total rare earth elements (TREE), with notable heavy REE components. While these results derive from older USGS data and require modern verification, the scale and grade suggest significant upside potential.

The Wet Mountain area is historically known for thorium and uranium mineralisation, with extensive geological surveys conducted in the mid-20th century. Magnum plans a systematic exploration campaign to unlock the project's value, complementing its Brazilian REE assets and diversifying its North American footprint.

Financial Position and Corporate Strategy

At the end of March 2026, Magnum held $4.9 million in cash, down from $5.9 million the previous quarter, with net operating cash outflows of $0.9 million. Exploration and evaluation expenses, including drilling and landholding costs in Brazil, accounted for $0.6 million. The company reported no substantive mining or production activities during the quarter, consistent with its exploration-stage status.

Strategically, Magnum is prioritising its core Brazilian REE assets, focusing on the Azimuth and Palmares projects, while continuing to evaluate opportunities across its broader portfolio. The leadership changes and accelerated drilling programs signal a clear intent to transition from discovery to resource definition phases.