Axel REE Identifies New ISR target at Caldas South Block in Brazil

Axel REE (ASX: AXL) has identified a second potential in-situ recovery (ISR) area following an auger drilling campaign at the South block of its Caldas project in Brazil.

Testing conducted by SGS Laboratories confirmed thick, near-surface intervals containing high concentrations of a laterally continuous ionic adsorption clay (IAC) rare earth system at the block, confirming it has the characteristics targeted for low-cost, low-impact ISR.

Standout soluble leach assays were 6m at 921 parts per million soluble TREO (total rare earth oxides) (35% MREO, magnet rare earth oxides) including 1m at 1,542ppm soluble TREO (38% MREO).

These compare favourably with results reported from ionic clay projects being developed internationally.

Initial Auger Program

Axel completed an initial program of 28 auger holes for 315 metres across seven exploration licences along the south-western margin of the Poços de Caldas alkaline complex.

Following the review of TREO assay results, the company then submitted samples from 10 holes to SGS for magnesium sulphate leach testing.

Total assays defined extensive clay-hosted mineralisation from surface, showing that it occurs in an exchangeable form over continuous downhole intervals.

The results identify Caldas South as a potential second mineralised district capable of progressing through the same ISR technical pathway being pursued at Axel’s 572 million tonne Caladão rare earths project.

Complementing Woolrich Deposit

Managing director Patience Mpofu said the Caldas South results complement recent column leach test work at the company’s flagship Woolrich deposit within Caladão that demonstrated strong REE ISR amenability.

“These results establish Caldas South as a potential second ionic rare earth district within our portfolio,” she said.

“Drilling confirms broad, near-surface mineralisation, and leach results show that a meaningful portion of the inventory sits in an exchangeable ionic form – the key characteristic we look for in a potential ISR target.”

While Axel regards Woolrich as its most advanced project and primary focus, Ms Mpofu said that Caldas South adds meaningful scale and optionality to the company’s strategy to “build a portfolio of ionic rare earth projects capable of progressing through a common, modular, and potentially low-impact ISR development pathway.”