Axel REE has confirmed a breakthrough in sustainable rare earth extraction at its Woolrich deposit, surpassing previous test benchmarks and preparing for field trials in December 2026.
- Column leach tests recover 560ppm soluble TREO at Woolrich
- Magnet-rich rare earth basket maintained with low impurities
- Field ISR exploratory test planned for December 2026
- Dr Patience Mpofu appointed Managing Director
- Strong cash position of $5.7 million at quarter end
Breakthrough in Rare Earth Extraction at Woolrich
Axel REE Limited (ASX:AXL) has taken a significant step towards commercialising a low-cost, sustainable in situ recovery (ISR) method for rare earth elements (REE) at its Woolrich deposit within the Caladão REE-Gallium Project in Minas Gerais, Brazil. Recent column leach testwork using a mild magnesium sulphate solution at pH 4.0 recovered 560ppm soluble total rare earth oxides (TREO), exceeding previous diagnostic benchmarks by 14% under lower reagent strength conditions. This result not only surpasses earlier tests but also maintains a magnet-rich rare earth oxide (MREO) basket, including critical heavy rare earths dysprosium and terbium, while keeping impurity mobilisation very low. Such selectivity bodes well for simpler downstream processing and cost efficiencies.
Preparing for Field-Scale ISR Trials
Building on these promising laboratory results, Axel plans to commence its inaugural ISR field exploratory test programme at Woolrich in the December quarter of 2026. This programme aims to generate vital operating parameters such as permeability response, reagent consumption, and recovery behaviour under real field conditions. The test area, covering approximately two hectares, was selected for its favourable geological and hydrological characteristics, including low-relief topography and suitable regolith permeability. Pregnant leach solution (PLS) generated from these trials will be supplied to Core Resources in Australia for downstream production of a mixed rare earth concentrate (MREC), evaluating the pathway from in situ extraction to a saleable product. Success in these trials could position Axel as a first-mover in commercial ISR REE extraction in Brazil.
Resource Upgrade and Strategic Metallurgical Work
Drilling results from 137 holes within a 258-hole programme have reinforced Woolrich's potential, supporting an upgrade of its 128 million tonne inferred resource at 1,013ppm TREO to an Indicated classification. Noteworthy intercepts include high-grade assays such as 1 metre at 8,517ppm TREO with 41% MREO and significant heavy rare earth element enrichment, aligning Woolrich’s profile more closely with valuable ionic clay systems in southern China than typical Brazilian carbonatite deposits. Concurrently, metallurgical testwork on gallium and scandium; critical minerals for semiconductor and defence applications; is progressing, highlighting Caladão’s strategic resource potential beyond rare earths.
Leadership and Financial Positioning
On the corporate front, Axel has appointed Dr Patience Mpofu as Managing Director. With over 25 years of global mining and critical minerals experience, including senior roles at South32, Anglo American, and Sibanye-Stillwater, Dr Mpofu brings deep expertise in mineral processing and rare earth metallurgy, directly relevant to Axel’s ISR ambitions. The company ended the quarter with a robust cash balance of $5.7 million, supporting ongoing exploration and development activities. Exploration expenditure for the quarter was $477,000, with total spend remaining below prospectus estimates, reflecting disciplined capital management as Axel advances its rare earth and critical minerals projects.
Wider Implications for Rare Earth Supply
Axel’s progress at Woolrich and the broader Caladão Project is noteworthy given the global strategic importance of rare earths and gallium, especially amid ongoing supply chain concerns and export restrictions from dominant producers. The company’s ISR approach promises a lower environmental footprint and modular scalability, potentially offering a competitive edge in the evolving critical minerals landscape. However, key uncertainties remain around regulatory approvals, permitting, and successful scale-up from field trials to commercial operations. The December 2026 field programme will be a pivotal milestone in testing these assumptions and shaping Axel’s next phase of development.
Bottom Line?
Axel REE’s validation of its ISR extraction method and upcoming field trials mark a crucial test of its low-cost, sustainable rare earth strategy in Brazil.
Questions in the middle?
- Will the December 2026 ISR field trials replicate laboratory successes under real-world conditions?
- How quickly can Axel upgrade Woolrich’s resource to Indicated status and what impact will this have on project financing?
- What regulatory and environmental hurdles must Axel clear to commercialise ISR extraction at scale in Minas Gerais?