Gold Mountain Expands Rare Earth Footprint with Strong Metallurgical Breakthroughs in Brazil

Irajuba Prospect Surpasses Exploration Expectations

Gold Mountain’s Irajuba Prospect continues to deliver, with diamond drilling expanding the rare earth mineralised footprint well beyond the previously defined Exploration Target. The company reported broad zones of saprolite- and saprock-hosted mineralisation, featuring thick, continuous intervals with Total Rare Earth Oxides (TREO) grades peaking at 6,151 ppm over 17 metres. Notably, these zones maintain consistently favourable Magnet Rare Earth Oxide (MREO) ratios exceeding 40%, a crucial metric given the premium value of magnet rare earth elements in permanent magnet applications.

This expansion stretches the mineralised system over approximately 1.2 kilometres, substantially improving geological confidence and laying groundwork for future Mineral Resource estimation. The ongoing integration of geological and metallurgical data is refining target prioritisation, with three new priority areas identified for follow-up drilling based on favourable extraction characteristics and low deleterious element concentrations.

Capivara Metallurgical Breakthrough Validates Ionic Adsorption Clay Potential

At the Capivara Prospect, metallurgical testing by the Australian Nuclear Science and Technology Organisation (ANSTO) has marked a milestone, confirming Ionic Adsorption Clay (IAC) style rare earth mineralisation. Ammonium sulphate desorption tests returned extraction rates of up to 65.9% for Total Rare Earth Elements plus Yttrium excluding Cerium (TREY-Ce), with magnet rare earth extraction reaching 63.6%. These figures compare favourably with established IAC deposits, suggesting portions of Capivara's weathering profile could be amenable to low-cost, environmentally friendly processing via ammonium sulphate leaching.

Variability in extraction rates across samples highlights geological complexity, with deeper saprolite horizons showing superior extraction performance. This aligns with geological interpretations that rare earth enrichment intensifies with depth, underscoring the need for deeper drilling beyond the current shallow auger programs. The identification of zones with low aluminium, iron, and calcium concentrations further supports favourable downstream processing economics.

Ayrton Senna Emerges as a Promising Rare Earth Target

Exploration at Ayrton Senna continues to reveal encouraging shallow rare earth mineralisation with TREO grades up to 2,610 ppm. Auger drilling intersected broad mineralised zones exhibiting consistently strong MREO ratios, though the majority of drilling has only sampled the upper weathered profile. Geological indicators, including high Chemical Index of Alteration (CIA) values and the presence of halo mineralisation, suggest that more substantial rare earth enrichment likely exists at greater depths.

To overcome duricrust-imposed drilling limitations, Gold Mountain has upgraded its auger drilling capacity, aiming to penetrate deeper into the saprolite profile during upcoming programs. Metallurgical testing is underway to determine whether Ayrton Senna’s mineralisation shares the Ionic Adsorption Clay characteristics confirmed at Capivara, which will be pivotal in guiding future drilling and development plans.

Lithium Valley Project Highlights Concealed Pegmatite Systems

Beyond rare earths, Gold Mountain’s regional exploration at the Franciscópolis Prospect within the Lithium Valley Project has identified multiple lithium anomalies consistent with concealed lithium-bearing pegmatite systems. Systematic stream sediment sampling pinpointed coherent lithium anomalies accompanied by pathfinder elements such as caesium, rubidium, and niobium. Structural and magnetic data reveal northeast-trending corridors likely to serve as pegmatite emplacement pathways, mirroring geological settings of known lithium provinces in Brazil.

Reconnaissance mapping and historical artisanal mining nearby bolster the prospectivity of Franciscópolis. The company plans infill geochemical sampling, detailed mapping, and environmental permitting to prepare for future drilling campaigns targeting these high-quality lithium targets.

Financial Position and Outlook

Gold Mountain invested $1.235 million in exploration and evaluation during the quarter, focusing on drilling, metallurgical testing, and regional target generation. The company bolstered its cash position to $7.35 million following financing activities raising $8.45 million, providing a runway of over five quarters at current expenditure rates.

With no production or development activities reported this quarter, the focus remains firmly on advancing exploration and resource definition. The company’s strategy of integrating early-stage metallurgical testing with geological exploration aims to streamline the identification of economically viable rare earth deposits with low environmental impact.

Upcoming work will deepen drilling at Irajuba, Capivara, and Ayrton Senna, expand metallurgical testing, and continue regional exploration to build a robust pipeline of targets. In parallel, lithium exploration at Franciscópolis will progress through detailed geochemical and structural studies to refine drill targets.