Axel REE (ASX:AXL) has received the first assay results from drilling at the Caladão Project in Brazil, which returned up to 12,931 parts per million (ppm) total rare earth oxide (TREO).
The first diamond drillhole, CLD-DDH-001, identified a thick, clay-hosted mineralised zone, which returned 12.4m @ 5,478ppm TREO from 14m, including 2 @ 12,454ppm TREO from 18m.
Axel REE, which has a market capitalisation of $16.57 million, says the initial assays highlight the Caladão Project’s rare earths mineralisation potential, with extensive lateral continuity of thick “high-grade” intersections from the diamond drillhole.
The company adds this also underscores the potential for the Caladão Project to emerge into a major rare earths discovery in Brazil.
Auger drillholes also intercepted broad zones of rare earths mineralisation of 10m @ 1,566ppm TREO, including 2m @ 2,757ppm TREO; and 12m @ 1,932ppm TREO, including 1m @ 4,033ppm TREO.
Managing Director Fernando Tallarico says these initial results confirm the company’s expectation of thick, shallow, and laterally persistent clay-hosted rare earth mineralisation.
“These results, coupled with the 25km of rare earths-mineralised strike identified by previous auger drilling, are incredibly encouraging and validate the potential for a major discovery at the Caladão Project,” Tallarico says.
“Our team is excited to continue our exploration efforts to expand on these results received and further define the potential scale of this project.”
Axel REE notes that further results are expected over the coming months from the 20,000m drilling campaign, with phase-one currently underway.
The Caladão Project lies in the Lithium Valley, northeast of Minas Gerais, Brazil. This region spans 150,000km2 and is known for major pegmatite-hosted lithium discoveries.
Axel REE is an explorer primarily focused on the Caladão, Caldas, Itiquira, and Corrente rare earths projects in Brazil. The company’s project portfolio covers over 1,105km2 of tenure.
Write to Aaliyah Rogan at Mining.com.au
Images: Axel REE
