Widespread REE Mineralisation at Pimenta Raises Questions on Extraction Viability
Verity Resources has confirmed widespread near-surface rare earth element mineralisation at its Pimenta Project in Brazil, highlighting a promising new discovery zone with high-value magnet rare earth oxides.
- Auger drilling confirms extensive REE mineralisation over 20km at Pimenta Project
- High proportions of magnet rare earth oxides (MREO) up to 28% in shallow soils and saprolite
- Geological similarity to American Rare Earths’ Halleck Creek allanite-hosted deposit
- Project benefits from strong infrastructure and accessible location in Minas Gerais
- Next steps include infill drilling and metallurgical testwork to assess resource potential
A New Rare Earth Frontier in Brazil
Verity Resources Limited (ASX – VRL) has announced compelling early-stage exploration results from its Pimenta Project in Minas Gerais, Brazil. The recent auger drilling program has confirmed widespread near-surface rare earth element (REE) mineralisation across a large area, marking a significant new discovery in a region known for its mineral wealth.
The Pimenta Project targets a granite-hosted REE system enriched in light rare earth elements, particularly those critical for high-tech and clean energy applications. The auger drilling intercepted consistent mineralisation within a weathered soil and saprolite profile, with standout results including 4 meters at 2,683 ppm total rare earth oxides (TREO) and magnet rare earth oxides (MREO) proportions reaching up to 28%. These figures underscore the potential for a high-value magnet mix dominated by neodymium and praseodymium (NdPr), essential components in permanent magnets.
Geological Context and Comparisons
The mineralisation is hosted primarily in allanite, a mineral associated with granitic rocks, and shows a coherent geochemical signature controlled by the underlying granite. This geological setting is notably similar to the Halleck Creek Project in the United States, operated by American Rare Earths Limited (ASX – ARR), which boasts a substantial resource of 2.63 billion tonnes at 3,292 ppm TREO. Such parallels provide a promising benchmark for Verity’s exploration ambitions.
Importantly, the mineralisation at Pimenta exhibits excellent lateral continuity and occurs at shallow depths, which could translate into more straightforward and cost-effective extraction methods. The project’s location benefits from proximity to sealed roads, hydroelectric power, and a skilled local workforce, factors that enhance its development prospects.
Next Steps and Market Implications
Verity’s management has expressed confidence in advancing the project, with plans for further infill drilling and metallurgical testwork aimed at defining the depth extent and processing characteristics of the mineralisation. These activities will be critical in moving from exploration results to a formal resource estimate and assessing economic viability.
Given the strategic importance of rare earth elements in global supply chains, especially for green technologies and electronics, the Pimenta Project’s progress will be closely watched by investors and industry observers. Verity’s ability to delineate a significant resource in a stable jurisdiction could position it as a notable player in the rare earth sector.
Bottom Line?
Verity’s Pimenta Project emerges as a promising new rare earth discovery, setting the stage for resource definition and potential market impact.
Questions in the middle?
- What will infill drilling reveal about the depth and continuity of the REE mineralisation?
- How will metallurgical testwork influence the economic feasibility of extracting the high-value magnet rare earths?
- Can Verity leverage its infrastructure advantages to accelerate project development in Minas Gerais?
