Axel REE’s Shallow Drilling Ends in Mineralisation, Signalling Depth Upside Risk

Exceptional Grades at Surface

Axel REE Limited (ASX: AXL) has unveiled a compelling set of assay results from its second batch of auger drilling at the Caldas Project, situated within the renowned Poços de Caldas Alkaline Complex in Minas Gerais, Brazil. The results reveal thick, consistent, and high-grade rare earth element (REE) mineralisation starting from surface, with Total Rare Earth Oxides (TREO) concentrations reaching as high as 19,493ppm in one metre from 11 metres depth.

These grades are particularly notable given the shallow nature of the auger drilling, which typically penetrates only around 20 metres. Every hole drilled to date has ended in mineralisation, suggesting the deposit extends deeper and remains open for further exploration.

Magnetic Rare Earths and Strategic Location

Of particular interest is the high proportion of magnetic rare earth oxides (MREO), which consistently exceed 40% of the TREO content. This fraction includes critical elements such as Neodymium (Nd) and Praseodymium (Pr), essential for high-performance magnets used in electric vehicles and renewable energy technologies.

The Caldas Project benefits from its proximity to world-class REE deposits held by Meteoric Resources (ASX: MEI) and Viridis Mining & Metals (ASX: VMM), both of which have established substantial mineral resources within the same alkaline complex. Axel’s tenure covers 23,200 hectares, positioning it as a significant player in this prolific REE province.

Ongoing Exploration and Future Potential

Managing Director Dr Fernando Tallarico expressed enthusiasm about the results, highlighting the consistent high-grade mineralisation and the exploration upside at depth beyond the current auger drill limits. The company is continuing its auger drilling program while simultaneously advancing the Caladão REE and Gallium discovery towards a maiden JORC resource estimate and metallurgical testing.

The exploration approach leverages industry-standard sampling and assay techniques, with quality control measures ensuring reliable data. The vertical auger holes provide an unbiased representation of the flat-lying, clay-hosted mineralisation, which is typical of ionic adsorption clay (IAC) REE deposits formed by weathering of the alkaline igneous complex.

Strategic Implications for Axel REE

These latest results reinforce Axel REE’s position in a globally significant REE province and underscore the potential for a substantial resource base. The combination of high TREO grades, strong MREO proportions, and the large exploration footprint suggests that Axel could emerge as a key supplier of critical minerals essential for the green energy transition.

With further assay results pending and ongoing drilling planned, Axel’s Caldas Project is poised to deliver continuous newsflow and potentially significant value uplift as the company advances towards resource definition and development milestones.