Magnum Mining & Exploration Limited (ASX: MGU, “Magnum”) is pleased to inform that it has commenced testing of high-grade rare earth element (REE) samples of its Palmares Project in Bahia State, Brazil. The project, which has been fully funded to $130,000, will provide critical information on recovery percentages and processing streams, positioning the project for follow-up drilling.
Historic Mine Focus: Feirinha Prospect at Palmares
The Palmares REE Project consists of 18 tenements over ~348 km², strategically located in a host district dominated by top ASX-listed rare earth operators. There is a current leach program on the Feirinha Prospect (tenement 871332/2020), where trench and rock chip sampling has defined persistent high-grade mineralisation.
Highlights include:
- Trench assays up to 1.69% TREO (16,884 ppm), enriched in heavy rare earths (Dy, Tb, Y).
- Rock chip assay to 1.31% TREO (13,082 ppm), extremely enriched in neodymium (Nd) and praseodymium (Pr), which are essential in permanent magnets deployed in EVs, wind turbines, and defence technology.
- G2 pegmatite mapping across a 1.3 km strike length with consistent grades averaging 0.40% TREO (3,977 ppm).
- 15 high-grade samples have been submitted by Magnum to ALS Analytical Laboratories for ammonium sulphate leach testing, with the results expected by the end of September.
Chairman Michael Davy added:
“The Palmares REE Project continues to deliver robust results. Grades ranging up to 1.69% TREO, with enrichment of high-value rare earths, indicate the uniformity of mineralisation and underpin our intention to reserve Palmares as a high-priority exploration target. Leach testing before drilling enables us to validate recoveries before sinking costs, committing to drill, and being prudent in capital allocation.”
Secondary Prospects: Azimuth REE Project
In addition to Palmares, Magnum is also advancing the Azimuth REE Project, comprising 72 granted permits across ~1,201 km². Located on the Azimuth 125 trend, the project has multiple untested targets, which represent strong regional upside.
Figure 2: Location of Magnum’s Azimuth REE Project tenements on the Azimuth 125 trend.
Both Azimuth and Palmares are being subjected to a complete geological review, hence positioning Magnum as one of the largest rare earth landholders in Brazil with over 1,549 km² on tenure.
Strong Commodity Prices Create Tailwinds
Demand: The global market in rare earths is very strong, and it is supported by structural growth in clean energy and technology, electrification, and defense. Pricing on Nd and Pr oxides-key inputs in the permanent magnets-is at levels well above the levels of supply outside of China.
Such favorable market conditions place Magnum’s discoveries of high-grade mineralization in a location to assist with the diversification of the world supply.
Background to the Funding Initiative
Programs have been financed jointly on the strategic exploration support program under the Leach test programs. These schemes aim to recover early-stage technical costs to the explorers to enable drilling to proceed only once metallurgical recoveries are determined.
The schemes have been effective in enhancing the speed of discoveries in resource-abundant regimes and the directive of concentrated government-industry collaboration to enhance global supply chains of important minerals.
Market Performance and Financial Position
Magnum Mining & Exploration (ASX: MGU) last traded at $0.027 per share, or a market cap of approximately $30 million. The Company holds a cash balance of $4.1 million as of the most recent reporting date, and therefore is sufficiently funded to pursue both Palmares and Azimuth.
Next Steps
Establishing high-grade mineralisation, Magnum will:
- Complete leach testing on 15 high-grade samples, with results due by the end of September.
- Establish a test depth and strike extension drilling program at Feirinha, pending positive leach results.
- Advance permitting and contract preparatory to drilling.
- Follow-up systematic regional exploration on Palmares’ 18 properties and Azimuth’s extensive holding.
Portfolio Context: A District-Scale Opportunity
Magnum’s exploration portfolio provides the Company with a leading position as a Brazilian rare earth explorer with in excess of 1,549 km² of potential ground in Bahia, Minas Gerais, and Goias provinces. The strategy is clear: scientifically validate projects with low-cost technical programs before investing large amounts of capital in resource definition and drilling.
This calibrated approach maximizes shareholder value while preserving balance sheet strength, particularly in a commodity environment where it highly favors rare earth developers.
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Closing Statement
Chairman Michael Davy summed up:
“Palmares is quickly emerging as one of Brazil’s most prospective rare earth discoveries. With leach testing underway and drilling preparations advancing, Magnum is not only exploring but pioneering the next era of rare earth supply. Together with our expansive Azimuth holdings, we are positioning Magnum as a frontrunner in securing the materials essential for clean energy, technology, and global innovation”.
