Axel REE Limited (ASX: AXL) has announced the launch of an extensive drilling program at its Caladão Project in Minas Gerais, Brazil. This project, wholly owned by Axel, is situated in the Lithium Valley, known for significant lithium discoveries like Sigma Lithium Corp’s Grota do Cirilo LCE mine. Axel aims to explore high-grade rare earth element (REE) mineralization in this underexplored yet promising region, benefitting from excellent infrastructure access.
Key points of the announcement include:
The commencement of Phase 1 of the exploration program at Caladão, marking the beginning of a 20,000-meter drilling campaign planned over two years.
The focus of aggressive diamond drilling efforts to extend open REE mineralization at two key prospects (Area A and Area B), which previously revealed a 25km mineralized strike, including a large radiometric circular structure at Area B.
The utilization of diamond drilling to test the depth of the clay profile effectively, following previous auger drilling that indicated open REE mineralization at depth.
The Phase 1 program will consist of 52 holes totaling approximately 2,600 meters of diamond drilling.
Axel’s strategic move into IPO exploration strategy is highlighted, with subsequent Phase 1 campaigns planned at Caldas (Poços de Caldas REE) and Itiquira (Mato Grosso REE/Nb) in the near future.
Axel holds exploration permits and applications covering approximately 400km² at Caladão, part of its portfolio of four REE and niobium projects spanning over 1,100km².
Dr. Fernando Tallarico, Managing Director of Axel, commented:
“Following Axel’s successful IPO, we are eager to begin unlocking the potential of our Caladão Project in the Lithium Valley with our Phase 1 2,600m diamond drilling program. This program holds significant promise, building on historical auger results that identified two extensive target areas with mineralization open along strike and at depth.
Our diamond drilling approach will allow us to comprehensively investigate the clay profile and map the distribution of REE-bearing clay zones. We are particularly targeting a large circular radiometric structure at Area B and have designed our program to be adaptable based on ongoing results.
This Phase 1 initiative forms part of our broader 20,000-meter program at Caladão, aligning with our aggressive IPO strategy to advance our projects. We look forward to the continuous progress and updates from our Caldas and Itiquira projects in the weeks ahead.”
Previous geochemical and shallow auger drilling efforts by Axel in 2023 covered approximately 20% of the Caladão Project. These efforts identified two promising targets (Area A and Area B), with soil samples showing elevated Total Rare Earth Oxide (TREO) concentrations up to 3,547 ppm and auger drill intercepts revealing up to 18 meters @ 2,678 ppm TREO. All mineralized auger holes ended in mineralization, indicating further exploration is needed to determine the true extent of the REE mineralization across the expansive area of more than 400km², with both Area A and Area B remaining open in all directions.
