Wedoany.com Report-Oct. 13, Axel REE (ASX:AXL) has announced a maiden rare earth element (REE) resource of 233 million tonnes at 2,143 ppm total rare earth oxides (TREO) with 22% magnet rare earth oxides at its Caladão Project in Brazil. This follows the company’s earlier definition of a 100 million tonne gallium resource grading 42 ppm in lateritic soils, equivalent to 4,200 tonnes of contained gallium.

Axel REE has added a rare earths resource to the existing gallium resource at its Caladão project.

The new REE resource, covering about 33 square kilometers in Area A, represents less than 10% of the total Caladão Project area. The resource estimate is confined to the saprolite layer, using a 450 ppm TREO cut-off. Contractor SRK Brazil applied a conservative Reasonable Prospect for Eventual Economic Extraction (RPEEE) methodology, incorporating low metallurgical recovery parameters capped at 31%. These parameters are significantly lower than the preliminary recovery results of up to 52% achieved in metallurgical testing conducted by the Australian Nuclear Science and Technology Organisation (ANSTO).

AXL reported that metallurgical testing for both REE and gallium has indicated the potential for a low-cost extraction process, supporting a low-capital heap leach development model.

“Releasing a second Inferred Mineral Resource Estimate in the space of a few weeks, completed by SRK Brazil, is a significant milestone for the Caladão Project, which now hosts two distinct MREs – 100Mt Gallium MRE and 233Mt REE MRE,” said AXL Non-Executive Chairman Paul Dickson.

He added: “The delivery of a maiden 233Mt rare earth resource, so soon after the 100Mt gallium estimate, demonstrates both the scale and strategic importance of Caladão. To define two globally significant resources from the same deposit in such quick succession highlights the unique dual-commodity nature of the project and firmly establishes Caladão as a critical minerals asset of international relevance.”

Dickson noted that the conservative estimation approach adopted by SRK provides room for further growth and upgrading of the resource as metallurgical testing advances. “SRK’s own modelling indicates that applying higher recoveries could more than double the rare earth tonnage,” he said.

The Caladão Project’s combination of gallium and REE resources positions it as a major source of critical minerals. Both elements play key roles in global high-tech and clean energy industries, including semiconductors, electronics, magnets, and renewable energy systems.

AXL’s dual focus on REE and gallium extraction underlines the project’s potential to contribute to diversified supply chains for strategic minerals. The company aims to continue metallurgical optimization and resource expansion as part of its broader development strategy for Caladão.

The two maiden resource estimates achieved within weeks mark a notable step for AXL, reinforcing the project’s international significance and potential economic value in the growing global demand for critical minerals.