Axel REE Delivers Brazil’s First In-Situ Gallium Mineral Resource at Caladão Project

Axel REE (ASX: AXL) has reported a maiden mineral resource estimate (MRE) for gallium at its Caladão project in Brazil, declaring it one of the world’s largest known standalone inventories of the critical metal.

The resource – which SRK Consulting has classified as Inferred under the JORC Code – totals 100 million tonnes grading 42 parts per million gallium for 4,200t of contained metal.

The company said the result marked a milestone for Brazil as it transitions toward domestic production of strategic minerals historically dominated by China.

Major Resource with Global Relevance

The MRE covers gallium mineralisation in a surface layer that extends across approximately 33 square kilometres of the company’s tenements.

Axel is confident this early footprint will grow substantially, when it drills an additional 58 sq km of similar geology.

The gallium layer sits above the rare earth system targeted by earlier drilling and the company believes it can process both as part of a combined development strategy.

Management said the shallow setting and low expected strip ratios support the potential for low-cost open pit mining.

Strong Support From Early Metallurgy

The MRE follows earlier metallurgical test work that confirmed Caladão’s ionic clay mineralisation using standard leaching techniques.

Initial results showed positive gallium recoveries under acidic conditions, with further work now underway to optimise the flowsheet.

The company is developing a two-stage leaching process that would allow rare earth elements to be extracted first, followed by gallium, using heap leach methods similar to those used in China that would help reduce capital and operating costs.

Axel is also working with Brazil’s national mineral technology body to explore beneficiation options for gallium-rich material.

Brazil Supply Chain Breakthrough

Axel non-executive chair Paul Dickson said the resource – the country’s first in-situ gallium discovery and one of few around the world not associated with alumina or bauxite processing – marks a breakthrough for Brazil’s position in the gallium supply chain.

“The exceptional maiden gallium resource we have defined at Caladão is unique, with its own discrete layer of mineralisation at surface,” he said.

Mr Dickson said the gallium layer was first identified in assays from Axel’s 2024 drill campaign, only months after the company listed on the ASX.

He added that Caladão could emerge as a globally significant source of gallium and rare earth elements beyond China’s control.

Management confirmed that a rare earth resource estimate is underway and will follow once it has completed final modelling.

Favourable Mining Location

Located in Brazil’s “Lithium Valley” region of Minas Gerais, known for its supportive infrastructure and active critical minerals sector, Axel’s Caladão tenure covers 430 sq km.

However, the gallium footprint so far accounts for only a fraction of that area.

The company says Brazil’s low sovereign risk and strategic ties with Western markets provide a strong foundation for future offtake and financing.

Recent Chinese restrictions on gallium exports have elevated global interest in alternative supply chains, and Axel believes Caladão can play a long-term role in addressing those constraints while supporting high-tech manufacturing growth.