Magnum Mining Strikes REE Mineralisation in All 24 Holes at Piracanjuba North

Magnum Mining Hits REE Mineralisation in Every Single Hole — And the Desorption Numbers Are Turning Heads

Magnum Mining and Exploration rare earth mineralisation at Piracanjuba North Brazil has delivered a landmark early-stage result, with Magnum Mining and Exploration Limited (ASX: MGU) reporting rare earth element (REE) mineralisation in all 24 of the first auger holes completed from its ongoing 810-hole, ~10,000-metre drilling programme. Every hole intersected near-surface REE mineralisation at the PN-04 area — a result that materially reinforces the case for a potentially large-scale ionic adsorption clay (IAC) rare earth system beneath the company's 85km² Piracanjuba North geophysical anomaly.

What makes these results particularly notable isn't just the consistency of mineralisation — it's the desorption. The company reported desorption rates of up to 65% TREO and 82% MREO under mild, unoptimised ammonium sulphate screening conditions, including strong responses for the high-value magnet rare earth elements terbium and dysprosium (TbDy) at up to 66%, and SEG+Y at up to 72%. These are the numbers that matter most for an IAC system, and they are encouraging at this early stage.

"We are extremely pleased with the first assay and desorption results from the PN-04 area, with all 24 auger holes continuing to intersect near-surface REE mineralisation. The consistency of the results achieved to date continues to reinforce our view that the Piracanjuba system has the potential to host an IAC REE system with both world-class scale and exceptional desorption characteristics."
— Antonio Vitor Junior, Managing Director, Magnum Mining and Exploration

What Is Ionic Adsorption Clay — And Why Does Desorption Matter So Much?

For investors less familiar with IAC-style rare earth deposits, understanding the core mechanics here is essential context for evaluating what Magnum has found.

Ionic Adsorption Clay (IAC) deposits are a specific type of rare earth deposit where REE ions are loosely bound to clay minerals in deeply weathered rock profiles, rather than locked inside hard crystalline minerals. This geological characteristic has a critical commercial implication: the rare earths can potentially be extracted using simple, low-cost ion-exchange leaching methods — essentially washing a mild salt solution through the clay — rather than energy-intensive and complex processing techniques.

The most famous IAC deposits in the world are found in southern China, and they dominate global supply of medium and heavy rare earth elements (MHREE), including the high-value magnet rare earths neodymium, praseodymium, terbium, and dysprosium. These elements are essential inputs for permanent magnets used in electric vehicle motors, wind turbines, and defence systems.

Desorption is the key screening test for any IAC system. It measures what fraction of the total rare earth content can actually be released from the clay under mild leaching conditions. A high desorption rate is a strong early-stage indicator that the rare earths are held in exchangeable ionic form — precisely the configuration that makes IAC deposits commercially attractive. It does not represent final metallurgical or process recovery, but it provides a critical early signal that the system may be amenable to low-cost extraction.

Key Terms Glossary

The Drill Results in Detail — Consistency Across the Board

All 24 completed holes at the PN-04 area returned REE mineralisation from surface, with results spanning a range of depths from 5 metres to 19 metres total depth. Furthermore, the mineralisation begins at or near the surface (0 metres from collar) in every reported hole — a hallmark of the shallow, weathered-profile style of IAC deposits.

Standout Drill Intersections — PN-04 Area

Note: Reported intervals are apparent down-hole intervals from vertical auger drilling. No Mineral Resource geometry or continuous mineralised domain is implied. Desorption values are screening values under stated laboratory conditions and are not final metallurgical recovery.

The standout hole technically is PIR-AH-0022, specifically the 8–10 metre interval, which returned 849 ppm TREO with a 65% TREO desorption rate — delivering 556 ppm desorbed TREO. Within that same interval, the magnet rare earth and medium/heavy REE breakdown is particularly instructive.

PIR-AH-0022 (8–10m) — Flagship Interval Breakdown

The desorbed MREO plus desorbed SEG+Y together represent approximately 402 ppm, or roughly 72% of total desorbed TREO in this interval. Consequently, this means the system is not simply a light rare earth story — it carries a meaningful medium and heavy REE component, which is of greater commercial interest given persistent supply concerns for these elements.

Scale Potential: PN-04 Is Just the Beginning

PN-04 is a single ~4km² target area and represents only the first of five priority targets identified within the broader 85km² Piracanjuba North geophysical anomaly. To put that in perspective, the area tested so far covers less than 5% of the total anomaly footprint.

The current drilling programme is structured in two grids:

1. 200m x 200m grid — systematic infill drilling across PN-04 to test lateral continuity, domain coherence, and repeatability of desorption responses
2. 1,000m x 1,000m regional grid — broader reconnaissance across the full Piracanjuba footprint to identify and rank additional priority centres

The 810-hole programme is still in its early stages, with 24 holes completed and results pending for the remaining holes. The company has committed to reporting results in batches as assays are received.

The PN-04 area results are encouraging when assessed against classic IAC-style value drivers. The reported batch includes shallow mineralisation, strong apparent desorption of TbDy at the selected interval, meaningful MREO desorption, and multiple holes returning elevated desorbed TREO intervals.

Milestones on the Horizon — A Defined Pathway to Resources

Magnum has outlined a clear near-term timeline underpinned by the ongoing drilling programme. These milestones are conditional on exploration results but represent a structured pathway from exploration to resource definition.

The September Exploration Target and November JORC Resource targets are described as remaining on schedule. If delivered, these milestones would represent a significant maturation of the project from early-stage exploration discovery to a formally defined resource.

Beyond resource definition, the company's stated technical priorities — in order — are:

1. Desorption quality assessment
2. Repeatability across the drilling grid
3. Domain definition (identifying coherent mineralised zones)
4. Optimised metallurgy (improving recovery beyond initial screening conditions)

The current results represent early progress on the first two of these four objectives. In addition, the desorption screening was conducted under unoptimised initial conditions (0.5M ammonium sulphate, pH 4, room temperature, 30-minute leach), meaning there is meaningful scope to improve recovery metrics through future metallurgical optimisation work — a positive indicator for the project's longer-term potential.

The Investment Thesis — Why This Announcement Matters

1. A 100% Hit Rate Is Rare and Meaningful

In early-stage exploration, a 100% hit rate across 24 holes is a statistically significant result. More importantly, it extends the pattern established in Magnum's initial 13 discovery holes — reported earlier in 2026 — where all holes also intersected and terminated in REE mineralisation, with drill spacing of up to 5km. The consistency from surface across widely spaced holes supports the case for genuine lateral continuity of the mineralised system.

2. Desorption Quality Differentiates This System

Not all REE grades are created equal. Many REE projects report impressive headline TREO grades that offer limited economic potential because the rare earths cannot be economically extracted. However, the desorption results at PN-04 — under mild, unoptimised conditions — suggest the rare earths at Piracanjuba are held in a form that may be amenable to low-cost ion-exchange leaching. The high desorption rates specifically for TbDy and MREO further differentiate this system from lower-value, light REE-dominant occurrences.

3. The Scale Opportunity Remains Wide Open

With only 4km² out of an 85km² anomaly tested to any meaningful degree so far, and only the first batch of results from the first 24 of 810 planned holes reported, the scale potential at Piracanjuba is genuinely open-ended at this stage. Each batch of results from the continuing programme has the potential to either expand or further define the system.

4. The Project Is Entirely Owned by Magnum

The Azimuth 125 district, within which Piracanjuba sits, is 100% owned and controlled by Magnum Mining and Exploration. Exploration permits are registered with Brazil's Agência Nacional de Mineração (ANM). Consequently, there are no joint venture partners diluting the company's interest in results.

5. Catalysts Are Near-Term and Defined

Unlike many exploration-stage companies where the next meaningful catalyst is years away, Magnum has defined milestones — an Exploration Target by September 2026 and a JORC Resource by November 2026 — that are within a relatively short horizon. Ongoing batched assay releases from the continuing 810-hole programme provide a steady stream of potential near-term news flow in the meantime.

Why Investors Should Keep Watching Magnum Mining

Magnum Mining and Exploration rare earth mineralisation at Piracanjuba North Brazil has progressed from discovery to systematic follow-up in a matter of months, and the results from the first 24 holes of its 810-hole programme have validated the original discovery thesis. The combination of near-surface mineralisation, consistent 100% hit rates, and strong early-stage desorption — particularly for the high-value magnet and heavy rare earth elements — positions Piracanjuba as a project worthy of serious investor attention.

The programme is generating a structured flow of results with defined resource-level milestones on the near-term horizon. Each batch of assay results from the remaining holes has the potential to further define the scale and quality of the system — and with only a fraction of the 85km² anomaly tested to date, the upside remains substantial.

Key Takeaway:
Magnum Mining has achieved a 100% drill hit rate across its first 24 holes at Piracanjuba North, with desorption rates of up to 65% TREO and 82% MREO under unoptimised conditions — results that suggest a potentially large-scale, high-quality ionic adsorption clay rare earth system. With an Exploration Target scheduled for September 2026 and a JORC Resource by November 2026, and 786 holes still to come in the current programme, investors have multiple near-term catalysts to monitor.

Want to Know More About Magnum Mining's Piracanjuba Rare Earth Project?

With a 100% drill hit rate across its first 24 holes, desorption rates of up to 82% MREO under unoptimised conditions, and an 85km² anomaly still largely untested, Magnum Mining and Exploration (ASX: MGU) is advancing one of the most compelling early-stage ionic adsorption clay rare earth projects outside of China. With an Exploration Target targeted for September 2026 and a JORC Resource estimate scheduled for November 2026 — alongside a continuous flow of assay results from its ongoing 810-hole programme — there are multiple near-term catalysts on the horizon. To learn more about MGU and the Piracanjuba North project, visit www.mmel.com.au.