Since listing on the ASX in mid 2024, Axel REE Limited has rapidly advanced an aggressive exploration strategy in Minas Gerais, Brazil, with focus on its flagship Caladão project.
Considerable exploration at Caladão has established a world-class rare earth element (REE) and gallium discovery, demonstrating significant potential to become a prolific resource with high-grade mineralisation spanning more than 60 square kilometres and gallium mineralisation identified from the surface.
The Caladão project has advanced at such a pace that Axel REE is on track to release a high-grade Joint Ore Reserves Committee 2012 Mineral Resource in the first half of 2025. Assays from the company’s ongoing Phase 1 diamond and auger drill program at Caladão have consistently returned high-grade, thick REE intercepts from the surface to depths of up to 49 metres.
World-class assays of up to 28,321 parts per million total rare earth oxide (TREO) and up to 7605 parts per million high-value magnetic rare earth oxides (MREO) have been recorded, with intercepts also returning more than 40 per cent MREO/TREO.
With more than 4000 metres of drilling completed at the time of writing, Axel’s Non-executive Chairman, Paul Dickson, says that the consistency of high-grade REE mineralisation from the assays received at Caladão was exceptional.
‘Not only are the grades high, but they are also associated with thick REE horizons in the weathering profile,’ Dickson says. ‘Additionally, gallium concentrations have been found in the upper portions of the regolith and are proving to be consistent and widespread.’
In 2024, gallium emerged as an important critical mineral when China, which currently controls approximately 98 per cent of its global trade, imposed new export restrictions, causing the metal’s value to increase.
The surging gallium market provides Axel with a multi‑commodity opportunity at Caladão due to its potential to be a highly valuable by-product. During Phase 1 drilling, gallium mineralisation, including intercepts up to 124 grams per tonne gallium oxide have been returned at surface and are expected to improve project economics.
‘Caladão is shaping up as a unique critical minerals opportunity as the value of gallium strengthens,’ Dickson says. ‘Gallium is a crucial component in high-tech semi‑conductor materials for military defence; however, global supply is controlled by China. Recent news of China banning exports has made gallium a key strategic metal.’
In 2025, Axel is focused on delivering a maiden mineral resource estimation and progressing a metallurgical testwork program at the Caladão project, having engaged SRK Consulting and ANSTO for these activities.
The Phase 1 drilling program at the Caladão project is also continuing during the first quarter, 2025.
‘Not often do exploration programs go from grassroots to resource definition in such a short period, but the results we are seeing at the Caladão project warrant this aggressive approach,’ Dickson says.
Axel will also advance exploration at the Caldas REE Project in southern Minas Gerais, where grades from initial drilling have been impressive.
‘Axel has moved quickly since our initial public offering in mid 2024, and we intend to continue this rapid progress to establish our presence in Brazil,’ Dickson says.
