Axel REE Confirms High-Grade Rare Earth Mineralisation at Woolrich, Advancing ISR Development

Robust Rare Earth Grades Reinforce Woolrich’s ISR Potential

Axel REE Limited (ASX:AXL) has delivered assay results from 137 holes at its Woolrich ISR Rare Earth Element (REE) Deposit in Brazil, confirming a laterally extensive, thick, and shallow mineralised system. The standout numbers include intervals exceeding 10–12 metres starting as close as 1 metre from surface, highlighted by an exceptional 1m intercept grading 8,517ppm total rare earth oxides (TREO) with a magnetic rare earth oxide (MREO) proportion of 41%, including 269ppm Dysprosium-Terbium (DyTb) and 332ppm Yttrium oxide (Y2O3). These grades and thicknesses are exactly the characteristics Axel wants to underpin its low-impact in-situ recovery (ISR) development pathway.

Such shallow mineralisation is critical for ISR economics, reducing wellfield installation depth and associated costs. The results support Axel’s goal of upgrading Woolrich’s current 128Mt @ 1,013ppm TREO inferred mineral resource to an Indicated classification, a necessary step before advancing field recovery trials.

Heavy Rare Earth Enrichment Sets Woolrich Apart

What truly differentiates Woolrich from other Brazilian deposits is its enrichment in heavy rare earth elements (HREE), notably Dysprosium, Terbium, and Yttrium. These elements command premium prices due to their critical role in permanent magnets and high-tech applications. Axel’s assays reveal significant HREE content, with intercepts like 1m at 269ppm DyTb and 803ppm Y2O3, echoing the high-value ionic clay systems seen in southern China, the global benchmark for such deposits.

This HREE signature contrasts with the predominantly light rare earth element (LREE)-weighted Brazilian carbonatite and alkaline intrusive deposits, potentially enhancing the future mixed rare earth carbonate (MREC) product value, pending metallurgical recovery and downstream processing.

Magnesium Sulphate Leach Tests Support ISR Development

Complementing the drilling results, Axel has submitted mineralised intervals for magnesium sulphate (MgSO₄) leach testing at SGS laboratories. Early column leach tests have shown encouraging pregnant liquor breakthrough, supporting the feasibility of the ISR approach. This low-acidity leaching method aims to extract REEs with minimal surface disturbance and capital intensity, deploying modular hydrometallurgical plants within wellfields.

The ISR pathway is designed to enable staged development, reducing upfront costs and environmental footprint. However, the approach remains contingent on successful completion of technical studies, hydrogeological assessments, environmental approvals, and funding.

Next Steps Target Resource Upgrade and Field Trials

Axel is targeting completion of the Woolrich Indicated Mineral Resource upgrade within 2026, integrating drilling, assay, leach, and hydrogeological data to refine ISR wellfield design. The company plans to prioritise soluble REE domains for small-scale, low-impact ISR field recovery trials within 12 months, subject to regulatory approvals and board sanction.

This announcement builds on Axel’s recent momentum, following the selection of Woolrich for inaugural ISR field trials and metallurgical breakthroughs enhancing gallium and scandium recovery, positioning Caladão as a rare dual-pathway rare earth project. The combination of thick, shallow mineralisation and a differentiated HREE profile could give Axel a strategic edge in the rare earth sector, especially as demand for critical minerals intensifies globally.

Investors should note that the resource remains classified as inferred pending upgrade, and the ISR development pathway is subject to multiple technical and regulatory hurdles. Nevertheless, these results represent a significant step forward in Axel’s strategy to commercialise Brazil’s largest ionic clay-hosted rare earth system.

Axel’s progress is closely linked to its broader Caladão Project, which hosts a 572Mt inferred rare earth resource and a 439Mt inferred gallium resource, underpinning its vision for a modular, low-cost, and environmentally responsible rare earth operation in the Lithium Valley of Minas Gerais.

With magnesium sulphate leach results pending and field recovery trials on the horizon, Axel’s next six to twelve months will be pivotal in validating the ISR concept and moving closer to production.

These developments align with Axel’s recent announcements detailing ISR trial advances and metallurgical improvements, underscoring the company’s commitment to unlocking value from this unique deposit type through innovative extraction methods. The company’s approach may set a new benchmark for rare earth extraction in Brazil, a country traditionally dominated by carbonatite deposits.

As Axel navigates technical and regulatory milestones, the market will be watching how these high-grade, heavy rare earth enriched zones translate into a scalable, economically viable mining operation.