Resouro Strategic Metals (ASX:RAU) said assay results from 21 auger drill holes at the Tiros titanium and rare earth elements project in Brazil confirmed high-grade mineralization, according to a Tuesday Australian bourse filing.

Significant intercepts from the results included one meter at 22% grade of titanium oxide and 18,827 parts-per-million of total rare earth oxides from eight meters, as well as one meter at 25.6% grade of titanium oxide and 12,138 ppm of total rare earth oxides from 19 meters.

The current assay results add to the massive resource potential of the project area. The drilling campaign was designed to evaluate the areas outside the Tiros central block, the filing said.

The firm will produce a resource statement and develop a mine plan to complete a scoping study in support of a trial mining license application.

It has also begun work on the environmental impact study required as part of the licensing process.

Its shares fell over 9% on market close.