Special Report: Axel REE says an assay review has revealed ‘significant’ gallium mineralisation from surface within clay-hosted rare earth elements mineralisation at its Caladão project in Brazil’s lithium valley.
Gallium is a critical mineral for both the US and the EU and is essential for various advanced technologies, including high-performance semiconductor chips and has climbed to $595 per kilogram, the highest price since 2011.
It’s also in short supply, with China banning gallium exports to the US this month, which has driven a surge in demand for alternative sources. Direct sales of Chinese gallium to the West had already slowed after the metal, commonly extracted as a by-product of aluminium smelting, had export controls introduced last year.
“Like the family of high grade rare earth elements we have intercepted to date, gallium is a high value, strategically critical ingredient used in the semiconductors industry to manufacture high-tech communication components and in modern military defence equipment,” Axel REE (ASX:AXL) MD Dr Fernando Tallarico said.
“With China recently announcing that it is banning exports to the United States of gallium and other key high-tech materials with potential military applications, we are highly encouraged by the recent identification of significant gallium concentrations associated with our clay-hosted REE project.
“Brazil is progressively consolidating into a world class supplier of critical minerals, offering the possibility of a steady supply to the Western world.
“We are delighted to be working towards becoming a player in the global critical minerals sector, and we will continue to put all our efforts into advancing this highly promising Ga-REE project in Minas Gerais, Brazil.”
The review uncovered up to 124g/t Ga2O3 (gallium oxide) with thick profiles from surface up to 45m, which is associated with high grade REE.
Just some of the high-grade surface results include:
The company says the mineralisation trend, similar to the high grade REE reported to date, indicates widespread and laterally persistent gallium mineralisation at surface across a ~30km2 drilled zoned completed to date.
And that zone represents less than 10% of the total Caladão target area, which could mean the project has the potential to be a large, world-class deposit.
As assays are returned the company will continue to review the gallium potential at the project.
“Another important characteristic of the gallium mineralisation at Caladão is that it is shallow with thick and high-grade intercepts occurring from surface,” Tallarico said.
“This potentially has significant economic benefits as we shape our deposit. REE mineralisation has trended from near-surface to the deepest parts of the clay-rich regolith, whereas the gallium is concentrated in the upper and shallowest portions of this same regolith.
“What was initially considered overburden of the REE mineralisation is now seen as a potentially valuable gallium by-product.”
The phase 1 drill campaign at Caladão is ongoing, with 217 drill holes for 3606 metres drilled to date. The data is planned to be used to support a REE resource.
This article was developed in collaboration with Axel REE, a Stockhead advertiser at the time of publishing.
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