Core Energy Minerals Confirms Strong Rare Earths Potential Across Brazilian Portfolio

Core Energy Minerals Confirms Rare Earths Potential Across Growing Brazilian Portfolio

Core Energy Minerals Limited (ASX: CR3) has delivered a significant exploration update from its 100% owned Itambe Rare Earth Element (REE) Project in Brazil, with initial auger drilling results confirming strong mineralisation and validating the company's systematic, multi-project exploration approach. This Core Energy Minerals rare earths exploration update in Brazil marks a meaningful step forward for a company rapidly building scale in one of the world's most prospective rare earth regions.

With two additional projects now in active exploration, the momentum is building quickly across a coordinated, rolling portfolio strategy that sets this company apart from single-asset junior explorers.

Itambe Delivers: Auger Drilling Confirms High-Grade REE Mineralisation

The headline results from the first phase of auger drilling at Itambe are compelling. Assay results returned from the fine fraction of sieved samples include:

• 5.6m @ 1,429 ppm TREO from surface (ITTR001)
• 2.0m @ 1,546 ppm TREO from surface (ITTR002)

These intersections come from a 20-hole reconnaissance programme targeting soil anomalies previously identified by Rio Tinto, from whom Core Energy acquired the project in December 2025. Of the 64 samples collected, 51 assay results have been returned, with the remaining results anticipated in early May 2026.

A critical technical finding from this programme is the dramatic difference between sample preparation methods. When auger samples were sieved to remove coarse quartz fragments, the fine clay fraction returned grades up to 380% higher than bulk (unsieved) samples from the same intervals.

This distinction is not merely a laboratory curiosity. Furthermore, it has significant implications for how the project is understood and how future exploration will be designed.

Itambe Drill Results at a Glance: Sieved Fine Fraction vs. Bulk Sample (ITTR001)

The pattern is consistent and clear: coarse quartz fragments in bulk samples act as a dilutant, suppressing reported grades. The REE mineralisation is concentrated in fine clay particles, a characteristic consistent with the ionic adsorption clay (IAC) deposit model that the company is targeting.

"We are pleased with our on-ground exploration progress in Brazil. Our initial auger drilling and sampling at Itambe has been completed, with the team now moving south to Tunas to keep drilling while we assess the initial results from Itambe and plan our next phase of work at the project," said Tony Greenaway, Managing Director.

Understanding Ionic Adsorption Clay (IAC) Mineralisation

What Is IAC Mineralisation?

Ionic adsorption clay (IAC) deposits represent a specific style of rare earth mineralisation where REE ions are loosely attached to the surface of fine clay mineral particles within deeply weathered rock profiles (saprolite). The REEs are not locked inside hard mineral crystals. Instead, they sit on clay surfaces and can potentially be extracted using relatively simple processing methods, such as leaching with a mild salt solution.

Why Does It Matter to Investors?

IAC deposits have historically been the primary source of heavy and medium rare earth elements globally, particularly from southern China. They are attractive exploration targets for several reasons:

1. The mineralisation typically occurs near surface, reducing mining costs
2. The soft, clay-rich material is generally straightforward to excavate
3. The leaching-based processing method can be simpler and lower cost compared to hard-rock REE processing
4. They can carry meaningful proportions of the more valuable heavy REEs (HREEs) and magnetic REEs

The 380% grade uplift observed in fine fraction sieved samples at Itambe directly supports an IAC-style mineralisation model, making the planned leach testwork a critical next step for the project.

Glossary of Key Terms

A Three-Project Portfolio in Active Exploration

What distinguishes Core Energy's current position is not just one project. However, it is a coordinated, rolling exploration programme across three projects in Brazil, each at a different stage of advancement.

Tunas REE Project: Infill Drilling Now Underway

With the Itambe programme complete, the field team has mobilised south to the Tunas Project in Paraná State to undertake an infill auger drilling campaign. Tunas has already demonstrated strong REE potential from earlier hand-auger work, with results including:

• 6.5m @ 1,653 ppm TREO (TNTR007)
• 5.0m @ 1,523 ppm TREO (TNTR001)

The current programme involves an estimated 20 holes targeting depths of up to approximately 15 metres, designed to test the continuity and thickness of the weathering profile and to refine the geological model ahead of future exploration targeting.

Campo Largo REE Project: New Frontier, Encouraging Early Signs

Approximately 60 kilometres southwest of Tunas, Core Energy has completed an initial reconnaissance of its newest project area, Campo Largo, also in Paraná State.

The area is interpreted to host intrusive rocks with lithological and geochemical characteristics comparable to those at Tunas. This includes elevated uranium, thorium, and potassium (U–Th–K) signatures associated with similar geological systems. Early field observations are positive:

• Deeply weathered saprolite clay profiles confirmed across the project area
• Initial landholder engagement successfully completed, a critical step for obtaining a licence to operate
• Systematic geological mapping and rock sampling planned for coming weeks to define RC/diamond drilling targets

"We have also completed an initial site inspection of our new Campo Largo application areas and positively connected with our local landholders. This is critical for our licence to operate in the area, while we plan our first on-ground activities for this new project," noted Greenaway.

Brazilian Project Portfolio Summary

Why This Exploration Strategy Stands Out

Core Energy's approach is deliberately staged and systematic, a philosophy that management articulates clearly. Rather than spreading resources thinly or drilling speculatively, the team moves methodically through its portfolio, using first-pass results to inform each subsequent phase of work.

In addition, several elements of this strategy deserve investor attention:

1. Efficient team utilisation: The same on-ground geological team rotates across projects, maximising productivity from every exploration dollar spent.
2. Results-driven progression: Work at each project informs the design of the next phase, reducing exploration risk over time.
3. In-country expertise: Core Energy has an existing on-ground geological team operating in Bahia State, reducing operational friction and accelerating field programmes.
4. Prior owner validation: The Itambe Project was acquired from Rio Tinto, which had already completed conceptual regional targeting across approximately 7% of the total tenement area, leaving ~90% untested and representing substantial upside.
5. Mineral composition quality: HREO content ranges from 18–26% and MREO from 19–21% across sampled intervals, alongside NdPr and DyTb values directly relevant to the permanent magnet supply chain.

REE Composition Highlights: ITTR001 and ITTR002 (Sieved Fraction)

What Comes Next: Planned Activities and Upcoming Catalysts

Core Energy has a well-defined near-term workplan across its Brazilian portfolio. Investors should look for the following catalysts over the coming months.

Near-Term Catalysts (Weeks to Months)

• Remaining Itambe assay results expected in early May 2026, completing the picture from the first-pass auger programme
• Infill auger drilling results from Tunas (~20 holes, up to 15m depth), testing continuity of known high-grade mineralisation
• Systematic geological mapping and rock sampling at Campo Largo to define first-pass REE prospectivity and drilling targets

Medium-Term Catalysts

• Leach testwork on Itambe samples to assess REE recovery under an IAC model
• Systematic reconnaissance across the remaining ~90% of Itambe that has not been explored to date
• RC or diamond drilling target definition at Campo Largo, subject to mapping outcomes
• Geological model refinement at Tunas to prioritise future exploration targets

Why Investors Should Be Watching Core Energy Minerals

Core Energy Minerals is executing a disciplined, multi-front rare earths exploration strategy in Brazil, a country with well-established mining infrastructure, tier-one exploration districts, and a growing recognition of its rare earth prospectivity.

Several factors combine to make this a company worth monitoring closely:

• Scale and diversity: Three active REE projects in Brazil, each at a different exploration stage, provide multiple near-term news flow catalysts and reduce single-project concentration risk.
• High-quality starting point: The Itambe acquisition from Rio Tinto includes existing geochemical data identifying large anomalous areas with peak soil sample values of 5,123 ppm TREO, providing a strong foundation for drill targeting.
• The 380% grade uplift finding is material: This confirms an IAC-style mineralisation model and suggests that prior bulk sampling results may understate the true resource potential of fine-grained clay-hosted REE deposits.
• Experienced in-country team: Operational expertise in Bahia State, established laboratory relationships (SGS Geosol, certified ISO9001, ISO14001 and ISO17025), and successful landholder engagement demonstrate genuine on-the-ground capability.
• Substantial untested ground: Approximately 90% of the Itambe tenement area remains unsampled, meaning each field season has the potential to materially expand known REE mineralisation.

With remaining Itambe assays due in early May and infill drilling results from Tunas imminent, there is a clear pipeline of near-term catalysts for investors to track. This Core Energy Minerals rare earths exploration update in Brazil demonstrates a systematic approach that positions the company well for continued exploration success.

Core Energy Minerals (ASX: CR3) has confirmed meaningful rare earth mineralisation at Itambe and is now running a coordinated three-project exploration programme across Brazil. The 380% grade uplift in sieved clay fraction samples validates an ionic adsorption clay mineralisation model with attractive processing implications, whilst the rapid mobilisation to Tunas and first-pass reconnaissance at Campo Largo demonstrate a capital-efficient, results-driven exploration approach.

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