Magnum Expands Brazilian REE Permits to 429 Square Kilometres
Magnum Mining has significantly increased its exploration footprint around the Piracanjuba rare earth clay discovery in Brazil, securing 14 new permits and advancing a major drilling campaign targeting a large-scale deposit.
- 14 new three-year exploration permits granted by Brazilian mining agency
- Total landholding around Piracanjuba now 429.49 km²
- 10,000m auger drilling underway across 85 km² geophysical anomaly
- High-grade REE mineralisation confirmed with strong desorption recoveries
- Regular assay and desorption results reporting to commence soon
Strategic Permit Expansion Around Confirmed REE Discovery
Magnum Mining and Exploration Limited (ASX:MGU) has dramatically expanded its tenure surrounding the Piracanjuba Ionic Adsorption Clay (IAC) rare earth element (REE) discovery in Goiás, Brazil. The Brazilian National Mining Agency (ANM) has granted 14 new exploration permits, increasing Magnum’s landholding to 429.49 square kilometres. This move consolidates Magnum’s control over a region that already hosts confirmed REE mineralisation and an extensive 85 km² geophysical anomaly at Piracanjuba North.
These permits, valid for three years, provide Magnum with critical optionality to explore lateral extensions of the mineralised system, investigate regolith profiles, and follow geophysical and structural trends beyond previously tested areas. The expansion covers both Piracanjuba North and South targets, positioning Magnum to assess the full scale of what could be a world-class REE system.
Ongoing 10,000m Drilling Campaign Targets Large-Scale Deposit
Magnum is currently executing a 10,000-metre auger drilling program across the Piracanjuba North target, which remains in full swing with 810 holes planned. Early results have been promising, with all initial holes intersecting REE mineralisation and terminating in mineralised zones. Assays have revealed high-grade total rare earth oxides (TREO) up to 3,971 ppm and magnetic rare earth oxides (MREO) up to 1,360 ppm. Moreover, desorption testing has shown recoveries of up to 75% TREO and 94% MREO under mild leaching conditions, indicating potential for efficient extraction.
Magnum expects to begin releasing batches of assay and desorption results shortly, marking a period of increased news flow that will shed light on the deposit’s scale and economic potential. The company’s managing director, Antonio Vitor Junior, emphasised the strategic importance of the permit grants in consolidating Magnum’s position and advancing exploration efforts.
Geological Context and Regional Significance
The Piracanjuba prospect is situated within the Azimuth REE Project, itself located along the Azimuth 125° Lineament, a major crustal-scale structural feature. This structural setting is notable for hosting significant mineral deposits, including CMOC’s Catalão Project, one of Brazil’s highest-grade niobium mines located just 50 kilometres away. The geological setting and the extensive geophysical anomaly support the potential for a laterally extensive and economically significant REE deposit.
The confirmation that the mineralisation is hosted in ionic adsorption clays is particularly important, as these deposits typically allow for low-cost, environmentally friendly extraction methods compared to hard-rock REE deposits.
Next Steps in Exploration and Reporting
Magnum plans to integrate the newly granted permits into its existing geological and geophysical databases, including GIS and tenement systems. The company will conduct field reconnaissance, access planning, and landholder engagement as necessary, while prioritising targets for further auger drilling, mapping, and geophysical surveys.
Regular updates on assay and desorption results from the ongoing drilling campaign are anticipated to begin soon, providing the market with incremental insights into the deposit’s size and grade distribution. These results will be crucial in defining an Exploration Target and ultimately a JORC Mineral Resource Estimate, expected later in the year.
Bottom Line?
Magnum’s expanded tenure and ongoing drilling at Piracanjuba position the company to better define a potentially large-scale, high-value rare earth system, but upcoming assay results will be critical to validate the discovery’s economic prospects.
Questions in the middle?
- Will upcoming assay results confirm the lateral extent and consistency of the REE mineralisation?
- How might the high desorption recoveries translate into extraction costs and project economics?
- What is the timeline for converting the current exploration data into a formal JORC resource?
