Axel REE (ASX:AXL) has reported further strong results from its Caladão project, confirming a magnet-rich, multi-wellfield In-Situ Leach (ISL) ready REE system with high soluble TREO and NdPr content.
The latest announcement validates the pathway for modular ISL development and supports pilot testing in 2026.
Paraiso Deposit Validates ISL Pathway
Bench-scale testing confirms a magnet-rich, multi-wellfield ISL-ready rare earth element (REE) system at Caladão.
Paraiso Area A shows soluble Total Rare Earth Oxide (TREO) intercepts up to 13,705 gram-metre, with Magnet Rare Earth Oxide (MREO) making up approximately 41% of TREO, and neodymium-praseodymium (NdPr) content at ~39–40% of TREO.
Area B Woolrich also demonstrates strong soluble TREO of approximately 464 ppm and MREO of approximately 42%, indicating a consistent magnet-rich REE basket across Caladão. These results support modular ISL development, with pilot testing planned for 2026.
Caladão Resource Foundation
The Caladão project hosts a substantial resource base, including approximately 572 Mt TREO-equivalent and approximately 439 Mt of Gallium resources.
The JORC resource for Area A stands at 233 Mt @ 2,133 ppm TREO, while the Area B components, including Marambaia, Tiger Creek, and Woolrich, collectively total 349 Mt TREO across several zones.
Gallium resources total 439 Mt.
Previous metallurgical testwork by ANSTO and others has consistently supported the recoverability of both REE and Gallium from Caladão's mineralisation.
ISL Development De-Risking Underway
Axel REE is progressing several workstreams to de-risk the In-Situ Leach (ISL) pathway.
These include expanded magnesium sulphate (MgSO4) leach programmes, column and sequential leach tests, and comprehensive hydrogeology and geotechnical studies.
Infill drilling and 3D modelling are advancing to further define the resource and support the detailed planning of ISL development.
Additionally, the company is undertaking early market engagement to explore potential offtake agreements for future production.
Strategic Context and Risks
Caladão is advancing towards modular ISL development with pilot testing firmly planned for 2026.
This approach is anticipated to offer lower capital and operating costs, alongside a smaller surface footprint compared to conventional mining.
However, the project faces inherent risks, including execution challenges, regulatory hurdles in Brazil, and potential commodity price fluctuations.
The resource is currently classified as Inferred, and bench-scale metallurgical results may not always translate directly to pilot or field recoveries.
