Australian Mines (ASX:AUZ) has ‘significantly’ increased its rare earths exploration footprint with 17 new tenements comprising 51,000 hectares in the state of Bahia, northeast Brazil.
The tenements sit in the ‘highly prospective’ rare earth complex of Bahia, which is considered to be prospective for ionic absorption clay deposits and hard rock deposits containing rare earths and niobium.
Chief Executive Officer (CEO) Andrew Nesbitt says the company is ‘delighted’ to have significantly increased its land position, as well as the strategy to acquire these tenements.
The company is set to begin initial exploration at the new tenements this week.
Subject to the transfer of tenements, Australian Mines, which has a market capitalisation of $10.65 million,now holds 131,000 hectares, making it one of the ‘largest’ tenement holders in the region.
The Jequie Rare Earth Project lies within the state of Bahia and comprises 45 mineral right claims covering 82,568 hectares. The licences sit in the Jequie Block, a tectono-structural block of the northeastern Sao Francisco craton.
Australian Mines is focused on battery materials including nickel, cobalt, scandium, and rare earths.
As of 31 December 2023, the company had $3.861 million cash and cash equivalents at hand, according to its quarterly report. Australian Mines notes that this does not include the second tranche of the placement — $934,892 — which was received in January 2024.
Write to Aaliyah Rogan at Mining.com.au
Images: Australian Mines
