Magnum Mining Delivers 700–1,200Mt Rare Earth Target at Piracanjuba North

Magnum Mining Delivers Maiden Exploration Target Exceeding Half a Billion Tonnes at Piracanjuba North

Magnum Mining and Exploration (ASX: MGU | OTCQB: MGUFF) has reported a maiden Exploration Target at its Piracanjuba North prospect, part of the company's 100%-owned Azimuth REE Project in Goiás, Brazil. The Magnum Mining and Exploration Piracanjuba North rare earth exploration target in Brazil is a conceptual range of approximately 700 to 1,200 million tonnes (Mt) grading 500 to 650 parts per million (ppm) whole-hole head Total Rare Earth Oxide (TREO), according to the ASX announcement dated 5 August 2026.

The target has been defined across three drill-supported regolith domains covering approximately 44 square kilometres (km²), representing roughly 10% of the total licence area and approximately 38% of the company's broader 116 km² geophysical footprint. According to the announcement, the target was delivered under budget and ahead of schedule, having commenced just 120 days prior.

With nine drill rigs currently on site and approximately 6,200 metres of drilling completed (62% of the planned 10,000-metre programme), Magnum remains on track to deliver a maiden Mineral Resource Estimate compliant with the Joint Ore Reserves Committee (JORC) Code in November 2026, subject to exploration results.

"We are very pleased with the outcome of this first Exploration Target, which exceeds half a billion tonnes and represents only approximately 38% of Piracanjuba North. This demonstrates how rapidly our team has been able to advance the project to this important technical milestone," said Antonio Vitor, Managing Director of Magnum Mining and Exploration.

What the Numbers Actually Mean: A Snapshot of the Exploration Target

The three conceptual domains that form the Exploration Target vary in size, drilling density and analytical confidence. The table below summarises the key parameters reported for each domain.

According to the announcement, the unrounded central case sits at 879 Mt grading 591 ppm TREO, with lower and upper diagnostics of 704 Mt at 541 ppm and 1,177 Mt at 649 ppm respectively. No economic cut-off or top cut has been applied to these figures.

The company has included the following cautionary statement in its release: the potential quantity and grade of the Exploration Target are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain whether further exploration will result in the estimation of a Mineral Resource.

Understanding the Exploration Target: Key Terms Explained

For investors less familiar with early-stage exploration terminology, the announcement introduces several concepts that carry particular weight.

What Is an Exploration Target?

An Exploration Target is a conceptual estimate of the potential quantity and grade of mineralisation in an area. It is based on geological interpretation and early drilling data but is not a Mineral Resource. It cannot be used to assess economic viability or as a basis for investment decisions regarding contained metal. Under the JORC Code 2012, companies are required to include cautionary statements wherever Exploration Targets are reported.

What Is Total Rare Earth Oxide (TREO)?

TREO is the sum of all rare earth element oxides measured in a sample, expressed in ppm. It is the standard metric used to describe the grade of a rare earth deposit, with higher values generally indicating more concentrated mineralisation.

What Is an Ionic Adsorption Clay (IAC) Deposit?

IAC deposits are a type of rare earth deposit in which rare earth elements are loosely adsorbed onto clay minerals within weathered profiles, typically formed over granitic rocks. These deposits are notable because the rare earths can often be extracted using comparatively straightforward leaching processes. Piracanjuba North is, furthermore, being evaluated as an IAC-style system.

What Does Ammonium Sulphate Screening (D-TREO) Measure?

The "D-prefix" values in the company's assay data represent a laboratory screening protocol using ammonium sulphate solution to simulate desorption of rare earth ions from clay minerals. These are preliminary screening indicators only, and are not process recovery figures or final metallurgical results.

What Is a Mineral Resource Estimate (MRE)?

An MRE is a formal, JORC-compliant quantification of mineralisation with sufficient geological and analytical confidence to meet defined reporting criteria. It sits above an Exploration Target in terms of confidence and represents a critical milestone for project valuation and development planning. Magnum has stated it is targeting an MRE by November 2026.

Drilling Status and the Path to a Mineral Resource

Confidence varies across the three domains, and the company has outlined where additional work is required before an MRE can be established.

According to the announcement, a further 232 planned collars sit beyond the approximately 300 executed holes awaiting assay results, providing a measurable conversion pipeline for infill drilling, assay integration and boundary testing. Importantly, no grade or thickness has been assigned to holes awaiting results in the current estimate.

The Exploration Target is supported only by holes with received assay data. The full 10,000-metre programme is being assayed by total fusion inductively coupled plasma mass spectrometry (ICP/MS) and ammonium sulphate screening, with the complete assay dataset to be disclosed alongside the MRE.

What Makes Piracanjuba North Stand Out: Infrastructure and Location

One notable feature of the Piracanjuba North prospect, as described in the announcement, is its operating environment. Unlike many early-stage exploration projects located in remote settings, Piracanjuba North sits within a roaded, accessible agricultural district in an established Brazilian mining jurisdiction.

• The project centre is approximately 6.9 km from Piracanjuba city, 68.7 km from Goiânia's central business district, and 72.6 km from Goiânia/Santa Genoveva Airport in straight-line distances.
• Access is provided by existing paved regional highways, including the BR-153 (Belém-Brasília Highway) corridor, with additional access via the GO-020/Bela Vista and Piracanjuba corridors.
• Grid power infrastructure is present, with public planning records identifying a Piracanjuba 69 kV substation with 34.5 kV rural feeders located approximately 7-10 km from the principal work area in straight-line distance. The company notes that firm connection capacity must still be confirmed through a formal load and connection study.
• The surrounding region supports a layered labour and service base, drawing on nearby population centres including Piracanjuba (24,883 residents), Morrinhos (51,351), Caldas Novas (98,622), Catalão (114,427) and Goiânia (1,437,366), based on the 2022 IBGE Census.
• The existing agricultural and road network is reported to support year-round mobilisation of auger crews, light vehicles, fuel, accommodation and field services.

Magnum has noted that specialist rare earth metallurgy, hydrometallurgy, separation and process engineering will still require national and international participation, and that detailed logistics and infrastructure studies remain appropriate at the feasibility study stage.

District-Scale Ambition: This Is Only the Beginning

The Piracanjuba North Exploration Target covers approximately 44 km², while the broader interpreted geophysical anomaly across the Azimuth REE Project spans 116 km². The areas outside the three defined domains represent future exploration potential and have not been extrapolated in the current Exploration Target.

Magnum has also been consolidating tenure, having recently added exploration permits in close proximity to Piracanjuba North, and continues to evaluate additional complementary tenure in the region. The broader Azimuth REE Project spans the Azimuth 125 Degree Lineament across Goiás and Minas Gerais, with the Magnum Mining and Exploration Piracanjuba North rare earth exploration target in Brazil representing the first of multiple growth prospects the company has identified across the wider project area.

Near-Term Milestones and Development Pathway

Magnum has set out a sequence of near-term work intended to convert the Exploration Target into a JORC-compliant Mineral Resource, and ultimately, into a defined development scenario.

Immediate Priorities (Next 3–4 Months)

1. Complete the 10,000-metre auger drilling programme, with approximately 6,200 metres completed as at 5 August 2026.
2. Receive and integrate approximately 300 outstanding assay results from ALS.
3. Continue preliminary mineralogical characterisation, direct radiological characterisation and domain-level composite screening.
4. Deliver a maiden JORC Mineral Resource Estimate in November 2026, subject to exploration results.

Subsequent Workstreams (Next 6–12 Months)

• Approximately 2,000 metres of reverse circulation and/or diamond drilling, subject to Board approval, for deeper profiling and domain validation.
• Ore characterisation and metallurgical testwork.
• Dedicated Naturally Occurring Radioactive Material (NORM) characterisation studies.
• Integration of diamond drill hole PIR-DDH-0001 data.

Post-MRE Development Pathway

Why Investors Should Be Paying Attention to MGU

Magnum Mining's Azimuth REE Project has progressed from a greenfields target to a maiden Exploration Target covering hundreds of millions of tonnes in just over four months, delivered under budget and ahead of schedule according to the company. That pace of execution is, consequently, notable for an early-stage explorer.

Several factors highlighted in the announcement are relevant to investors monitoring the project:

• Scale potential. A conceptual range of 700–1,200 Mt positions Piracanjuba North among the larger-scale regolith-hosted rare earth systems currently under evaluation. The current Exploration Target covers only approximately 38% of the company's geophysical footprint, leaving the remaining approximately 62% as future exploration vectors.
• Critical mineral exposure. The Azimuth REE Project targets rare earth elements, including the magnet rare earths neodymium, praseodymium, terbium and dysprosium, considered inputs for electric motors, wind turbines and consumer electronics supply chains.
• Manageable logistics profile. The project sits within an existing agricultural and road network with paved highway access and proximate grid power infrastructure, which the company suggests may reduce the logistics complexity typically associated with remote frontier exploration.
• Defined upcoming catalysts. The November 2026 MRE target provides a concrete near-term milestone, followed by a structured sequence of technical studies through to feasibility.
• Full ownership. Magnum holds 100% of the Azimuth REE Project, meaning any future resource definition or economic study outcomes accrue entirely to MGU shareholders without dilution through a joint venture structure.
• Parallel technical workstreams. Alongside drilling, the company has commenced preliminary mineralogical characterisation, radiological work and composite screening, activities aimed at compressing the timeline toward economic evaluation.

"Magnum Mining has reported a maiden Exploration Target of 700–1,200 Mt at 500–650 ppm TREO at Piracanjuba North, with nine drill rigs on site and a JORC Mineral Resource Estimate targeted for November 2026. Investors following the rare earth sector may wish to monitor MGU's progress as this milestone approaches, noting that the Exploration Target remains conceptual and is not a Mineral Resource."

Glossary of Key Terms

Want to Know More About Magnum Mining's Azimuth REE Project?

With a maiden Exploration Target of up to 1,200 million tonnes already defined across just 38% of its geophysical footprint — and a JORC Mineral Resource Estimate targeted for November 2026 — Magnum Mining and Exploration (ASX: MGU) is advancing quickly through a clearly defined development pathway. Investors looking to learn more about the Azimuth REE Project, the Piracanjuba North prospect, and what upcoming milestones could mean for MGU shareholders can visit the company's official website at www.mmel.com.au.