Magnum Mining Advances Piracanjuba North Rare Earth Drilling in Brazil

Magnum Mining Pushes Deeper at Piracanjuba North as Brazilian REE Strategy Sharpens

Magnum Mining and Exploration (ASX: MGU | OTCQB: MGUFF) has released a corporate and activities update confirming rapid drilling progress at its flagship Piracanjuba North rare earth element (REE) project in Brazil. The Magnum Mining Piracanjuba North rare earth drilling update Brazil confirms a series of portfolio and corporate developments that point to a tightening strategic focus.

With approximately 6,900 metres drilled out of a planned 10,000-metre programme, nine drill rigs remaining on site, and a maiden Mineral Resource Estimate (MRE) targeted for November 2026, Magnum is progressing toward a value inflection point in its exploration story.

Drilling Accelerates Across a 116 km² Geophysical Anomaly

The headline development in this update is the sustained drilling momentum at Piracanjuba North, part of the company's broader Azimuth REE Project in Brazil.

According to the update, key drilling metrics as of 18 August 2026 include:

• Approximately 6,900 metres completed to date across the 10,000-metre programme
• 9 drill rigs remain on site, with periodic downtime for mechanical maintenance
• Drilling has expanded into PN-7 and its extensions toward the west and northeast
• Coverage now extends across the broader lateral extent of the interpreted 116 km² geophysical anomaly
• All drilling remains within the boundaries of the 44 km² Exploration Target area

The expansion of drilling into PN-7 and its lateral extensions is a notable development. It suggests the geological footprint at Piracanjuba North is broadening rather than narrowing, which is typically viewed as a positive indicator for a project still in the resource definition phase.

Furthermore, the company has stated it remains on track to deliver its maiden Mineral Resource Estimate in November 2026, subject to ongoing exploration results. For investors, this MRE would represent the first formal quantification of the deposit's scale and grade, and is generally regarded as a significant re-rating catalyst in the junior resources sector.

Palmares Results Received, Interpretation Underway

At the Palmares REE Project in Bahia State, drilling has concluded and a key laboratory milestone has now been reached, according to the announcement.

All assay results from samples dispatched to the ALS laboratory in Brazil have now been received. Quality assurance and quality control (QA/QC) procedures, technical review, and geological interpretation are currently underway, with the company indicating it expects to report interpreted results shortly.

The Feirinha Prospect sits within the Jequie Belt, a metamorphosed intrusive belt in Bahia State that has been described as an emerging REE province. Consequently, the results from the 70-hole programme focused on this prospect are likely to attract considerable market attention.

What to Watch

The pending release of Palmares assay results represents a near-term catalyst. With 75 holes completed and all results in hand, investors can anticipate a detailed geological interpretation announcement in the coming weeks.

Understanding the Resource Pathway: From Exploration Target to MRE

For investors newer to the junior mining space, it helps to understand where Magnum currently sits on the resource development pathway and why the November MRE carries weight.

The typical progression runs as follows: Exploration Target → Mineral Resource Estimate → Ore Reserve → Feasibility Study.

1. Exploration Target is a preliminary range of tonnes and grade, based on geophysical data and early drilling. Magnum delivered its maiden Exploration Target for Piracanjuba North on 11 August 2026. This is a conceptual estimate and not a formal resource classification.

2. Mineral Resource Estimate (MRE) is a formal, JORC-compliant quantification of mineralisation based on drilling data, geological modelling, and verification by an independent Competent Person. This is generally the first point at which a deposit is officially recognised as a potential economic asset.

3. Why it matters to investors is that an MRE transforms a geological anomaly into a classified inventory. It enables comparisons with industry peers, supports capital-raising efforts, may attract potential partners, and underpins future economic studies. For Magnum, delivering this milestone by November 2026 would represent a meaningful de-risking step for the Piracanjuba North investment case.

Glossary of Key Terms

• REE (Rare Earth Elements): A group of 17 metallic elements used in electric vehicles, wind turbines, defence systems, and electronics manufacturing
• RC Drilling (Reverse Circulation): A drilling method that retrieves rock chips from depth using air pressure, generally faster and cheaper than diamond core drilling and widely used in early-stage resource definition
• QA/QC (Quality Assurance / Quality Control): Procedures applied to laboratory samples to help ensure the accuracy and reliability of assay results
• Geophysical Anomaly: An area where geophysical surveys detect patterns in the earth consistent with the possible presence of mineralisation, used to guide drill targeting
• JORC Code: The Australasian Joint Ore Reserves Committee standard for reporting mineral resources and reserves, governing how companies disclose geological information on the ASX

Corporate Developments: Portfolio Rationalisation and a Leadership Change

Beyond the drill bit, Magnum has provided updates on several corporate matters relevant to investors.

Jack Lifton Consultancy Termination

Mr Jack Lifton, a commentator in the rare earth industry who joined Magnum as a consultant in July 2026, has elected to terminate his engagement effective immediately due to personal circumstances. According to the announcement:

• None of the 5,000,000 performance rights issued to Mr Lifton have vested
• No further consideration is payable beyond fees accrued to the termination date
• There is no financial liability to the company arising from this departure

Portfolio Review and Rationalisation

In line with Magnum's exploration-led growth strategy, the board has identified several potential opportunities for joint venture or divestment across its broader project portfolio. The stated rationale, as outlined in the update, is to:

• Reduce holding costs and associated overheads on non-core assets
• Concentrate capital and technical resources on core exploration priorities, principally Piracanjuba North
• Continue preliminary discussions with third parties, which are currently underway

Magnum has indicated these discussions remain at an early stage and there is no certainty any transaction will result. The company has committed to updating the market on material developments as they arise.

This rationalisation approach reflects a maturing strategic posture. Rather than spreading resources across a large portfolio, Magnum appears to be concentrating on the assets it considers to offer the strongest near-term resource definition potential — a clear signal of the company's confidence in the Magnum Mining Piracanjuba North rare earth drilling update Brazil narrative.

Upcoming Catalysts: What Investors Should be Watching

The coming months are shaping up to be an active period for Magnum across multiple workstreams.

The Investment Case: Why Piracanjuba North Commands Attention

Magnum's investment thesis centres on the scale and development pace of Piracanjuba North, a project that has evolved from a geophysical anomaly into an active, multi-rig drilling campaign with a formal MRE timeline.

Several factors underpin the case for investor attention:

1. Scale of the anomaly: A 116 km² geophysical anomaly with a 44 km² Exploration Target area positions Piracanjuba North among the larger REE exploration footprints reported in Brazil.

2. Drilling momentum: With approximately 6,900m drilled and nine rigs on site, the pace of the programme reflects operational capacity aligned with the November MRE timeline.

3. Dual-project pipeline: While Piracanjuba North anchors near-term news flow, the pending Palmares results add a second active catalyst to the portfolio.

4. Strategic focus: The portfolio rationalisation programme signals a company concentrating resources rather than diversifying attention, which may reduce execution risk.

5. Dual-listed market access: Listing on both the ASX and OTCQB (MGUFF) provides exposure to Australian and North American investor markets.

Key Takeaway

The Magnum Mining Piracanjuba North rare earth drilling update Brazil positions the company as an active rare earth explorer with clear near-term milestones. With a maiden Mineral Resource Estimate targeted for November 2026, Palmares assay results pending, and a disciplined portfolio rationalisation strategy underway, the company is progressing toward a series of value-defining events.

In addition, with the Feirinha Prospect results imminent and nine drill rigs continuing their work across a 116 km² geophysical anomaly, investors tracking the Brazilian REE space may wish to keep Magnum firmly on their watchlist as the Magnum Mining Piracanjuba North rare earth drilling update Brazil continues to develop.

Ready to Explore Magnum Mining's Brazilian REE Projects in More Detail?

With a maiden Mineral Resource Estimate targeted for November 2026, nine drill rigs active across a 116 km² geophysical anomaly, and Palmares assay results imminent, Magnum Mining and Exploration (ASX: MGU | OTCQB: MGUFF) is approaching a series of value-defining milestones. Investors seeking to learn more about the Piracanjuba North and Palmares projects, and what they could mean for the company's growth trajectory, can find full details at www.mmel.com.au.