What's Happening?
Axel REE, listed on the Australian Securities Exchange as AXL, has been granted three new exploration licences at the Caladão Project in Minas Gerais, Brazil. These licences were issued by the Agência
Nacional de Mineração (ANM) and cover an area of 867 hectares. The new tenements are contiguous with Area A, which is known for its geological setting that hosts an inferred resource estimate of 233 million tonnes at 2,143 parts per million (ppm) total rare earth oxide (TREO) and 100 million tonnes at 41ppm gallium-bearing laterite. The licences are currently held by Lobo Guara Mineracao e Representacao Eire. Axel REE's non-executive Chairman, Paul Dickson, announced plans to commence a 49-hole auger program to delineate gallium-rich laterites and REE-enriched horizons. The Caladão Project is located in the Lithium Valley district of Minas Gerais and features a landholding of 400 square kilometers with 25 kilometers of strike featuring rare earth elements mineralization.
Why It's Important?
The acquisition of these new exploration licences is significant for Axel REE as it expands the company's footprint in the resource-rich region of Minas Gerais, Brazil. This development positions Axel REE to potentially increase its resource base and strengthen its standing as a leading explorer of rare earth elements and gallium in Brazil. The focus on rare earth elements is particularly crucial given their importance in various high-tech industries, including electronics, renewable energy, and defense. The successful exploration and development of these resources could have substantial economic implications, potentially boosting the company's market value and contributing to the local economy through job creation and investment in the region.
What's Next?
Axel REE plans to initiate a 49-hole auger drilling program to further explore and delineate the gallium-rich laterites and REE-enriched horizons within the newly acquired licences. This exploration effort is aimed at resource growth and advancing the company's position in the rare earth elements sector. The company will likely continue to focus on expanding its resource base and enhancing its exploration capabilities in Brazil. Stakeholders, including investors and local communities, will be closely monitoring the progress of these exploration activities and their potential impact on the company's growth and the regional economy.
