Magnum Mining Confirms REE Mineralisation Across Four Centres at Piracanjuba North

Magnum Mining Confirms REE Mineralisation Across Four Separate Centres at Piracanjuba North, Drilling Ahead of Schedule

Magnum Mining and Exploration (ASX: MGU, OTCQB: MGUFF) has released its third batch of rare earth oxide assay results from the ongoing 10,000-metre drilling programme at the Azimuth REE Project in Goiás, Brazil. Magnum Mining rare earth mineralisation at Piracanjuba North Brazil continues to impress, with every one of the 92 newly reported holes returning anomalous total rare earth oxide (TREO) values, bringing the cumulative total to 214 anomalous results from 214 holes across all three assay batches released to date.

This latest batch is notable not only for its grade profile but for its geographic spread. Results are now confirmed from four separate target centres, PN-1, PN-2, PN-5, and PN-6, within a 116 km² geophysical target footprint. According to the announcement, this distribution demonstrates the mineralised system is not confined to a single localised anomaly but represents a broader, multi-centre exploration opportunity.

A 100% Hit Rate Across 214 Holes: What the Numbers Show

The third batch adds 471 paired head-assay and desorption intervals, bringing the working database to 1,293 intervals from 227 holes. Whole-hole composite TREO grades across the 92 new holes ranged from 186 ppm to 2,344 ppm, a spread the company attributes to the scale and natural variability typical of ionic adsorption clay (IAC) systems at this stage of exploration.

Standout intercepts reported in this batch include:

• PIR-AH-0142 (PN-6): 12m at 2,344 ppm TREO (8% desorption), 514 ppm MREO (14% desorption) from 0m, including 2m at 3,066 ppm TREO (13% desorption), 706 ppm MREO (23% desorption) from 6m
• PIR-AH-0223 (PN-5): 12m at 1,208 ppm TREO (12% desorption), 283 ppm MREO (20% desorption) from 0m, including 2m at 2,067 ppm TREO (14% desorption), 512 ppm MREO (23% desorption) from 8m
• PIR-AH-0184 (PN-2): 9m at 1,238 ppm TREO (18% desorption), 303 ppm MREO (29% desorption) from 0m
• PIR-AH-0186 (PN-2): 10m at 1,100 ppm TREO (20% desorption), 266 ppm MREO (31% desorption) from 0m
• PIR-AH-0222 (PN-5): 13m at 535 ppm TREO (48% desorption), 136 ppm MREO (63% desorption) from 0m
• PIR-AH-0157 (PN-1): 6m at 400 ppm TREO (68% desorption), 118 ppm MREO (83% desorption) from 0m

Selected Best Intercepts by Target Centre, Third Batch

Reported intervals represent apparent down-hole lengths, and true widths have yet to be established. Desorption values are laboratory screening indicators and do not represent final metallurgical or process recovery.

Understanding Ionic Adsorption Clay Deposits and Desorption Rates

What Is an Ionic Adsorption Clay (IAC) Deposit?

In conventional hard-rock rare earth element (REE) deposits, REEs are locked within mineral crystal structures and typically require energy-intensive, high-temperature processing to extract. In an IAC deposit, REEs are instead loosely attached to the surface of clay minerals, a result of deep tropical weathering of granitic rocks over long geological periods. This means the REEs can potentially be removed using relatively mild chemical solutions, most commonly a diluted ammonium sulphate leach, at or near room temperature.

The key question for any IAC system is not simply how much total REE is present, but how much of it can actually be recovered through this simpler leaching process. This is where the desorption rate becomes important.

Why Do Desorption Percentages Matter to Investors?

The D-TREO (desorbable TREO) and D-MREO (desorbable MREO) percentages reported by Magnum indicate what proportion of the total REE content responds to ammonium sulphate leaching under laboratory screening conditions. A higher desorption percentage may indicate a larger share of the REE inventory could be recoverable through lower-energy processing, a potential advantage for future project economics.

Intervals such as PIR-AH-0157 (85% D-TREO, 92% D-MREO in the best two-metre interval) and PIR-AH-0222 (69% D-TREO, 78% D-MREO in the best two-metre interval) show pockets within the system where desorbability appears particularly strong.

Important note on desorption data: Desorption screening results are laboratory indicators only and do not constitute final metallurgical recovery, process recovery, or a product specification. Further metallurgical testwork is required to determine actual recoveries.

Quick Glossary of Terms

Four Centres, One System: The Geological Picture at Piracanjuba North

The third batch results advance the interpretation across four distinct centres, each contributing independent evidence to the company's evolving geological model. Consequently, the case for Magnum Mining rare earth mineralisation at Piracanjuba North Brazil representing a large, coherent system continues to strengthen.

PN-1 continues to expand across a large target footprint, with multiple holes recording meaningful desorption responses and select intervals exceeding 600 ppm TREO in the best two-metre windows.

PN-2 is emerging as a strong contributor, with three successive mineralised holes now confirmed along the western flank. PIR-AH-0184 and PIR-AH-0186 both returned composite TREO grades above 1,000 ppm, with desorption responses strengthening toward the base of the profile.

PN-5 has delivered an increasing terminal desorption response, with PIR-AH-0222 and PIR-AH-0223 among the strongest holes reported from this centre to date. The best two-metre interval from PIR-AH-0223, at 2,067 ppm TREO, is among the highest-grade intervals reported across the entire programme.

PN-6 has returned follow-up mineralisation approximately 1 km from the previously reported discovery hole PIR-AH-0035, with PIR-AH-0142 delivering the highest single composite TREO grade in this batch at 2,344 ppm over 12 metres.

The first diamond drill hole, PIR-DDH-0001, has been completed to 34.53 metres and confirmed granite beneath the weathered profile, supporting the geological model for an IAC-style system developed over felsic source rock. Assay results from this hole remain pending.

Drilling Accelerates: Six Consecutive Weeks of Rising Productivity

Field productivity has increased for six consecutive weeks, with the most recent complete week delivering 772 metres from 61 auger holes, the highest single-week output recorded in the programme to date.

Programme Progress at a Glance

With nine rigs now on site, the company states it has the capacity to advance multiple work fronts simultaneously and redirect drilling toward the strongest emerging target centres. PN-1, PN-2, PN-5, and PN-6 have all been identified as priority follow-up areas, with multiple holes ending in mineralisation, a technical indication that the system may extend beyond current drill depths.

Completion timing remains subject to equipment availability, commissioning, land access, ground conditions, staffing, and the maintenance of geological, sampling, and quality assurance controls.

From Exploration Results to Resource: Upcoming Milestones

Magnum is now moving into the conversion phase, translating an expanding exploration database into the geological framework required for a formal Mineral Resource Estimate (MRE). Furthermore, the pace at which this transition is occurring reflects the strength of results accumulated to date.

Key upcoming milestones:

1. Exploration Target – the final data-integration phase is underway, targeted for early August 2026, to define conceptual ranges of area, thickness, volume, and grade for geologically supported domains.
2. Maiden JORC Mineral Resource Estimate – targeted for November 2026, representing the first formal, JORC-compliant quantification of the project's mineral inventory.
3. Continued drilling – systematic and selective infill drilling across priority centres, with deeper-capacity auger and diamond drilling planned to test saprolite continuity at depth.
4. Diamond drill assay results (PIR-DDH-0001) – pending, expected to provide the first deeper geological profile data to complement the auger dataset.
5. QAQC, density, and metallurgical studies – clay speciation, sequential extraction, and geometallurgical testwork are planned to support domain modelling and the MRE process.

Timeline Summary

The potential quantity and grade of any Exploration Target will be conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource across the Exploration Target areas, and it remains uncertain whether further exploration will result in the estimation of a Mineral Resource.

Logistics and Early Radionuclide Profile Support Project Development

Beyond the geological results, Piracanjuba North benefits from a project setting that has supported the pace of the current programme, according to the company.

• Located approximately 7 km from Piracanjuba city and 93 km by road from Goiânia, the state capital of Goiás
• Established road access, nearby grid power infrastructure, regional water access, and an available local workforce
• Dedicated sample-storage facilities on site

These logistical factors have supported the mobilisation and continued expansion of the nine-rig drilling fleet, the company noted.

On the environmental screening front, preliminary assay-derived estimates indicate a low natural radionuclide profile across the current Piracanjuba auger dataset. Interval-length-weighted averages across 1,293 intervals sit at approximately 2.27 ppm uranium and 28.26 ppm thorium, equating to indicative parent activity concentrations of approximately 28 Bq/kg for U-238 and 115 Bq/kg for Th-232.

The company describes these levels as comparable to typical natural background for uranium and relatively low compared with many ionic clay REE deposits for thorium. These figures are assay-derived screening calculations rather than direct radiometric measurements or regulatory classifications. Dedicated characterisation of naturally occurring radioactive material (NORM) and further metallurgical studies are planned as the project advances, and no regulatory conclusions should be drawn at this stage.

Exploration Manager Commentary: Leonardo Deringer Fraga, Exploration Manager for Magnum and the Competent Person for this announcement, has confirmed the technical information underlying the reported exploration results, noting the repetition of mineralisation style across separate target centres supports the interpretation of a large, multi-centre IAC-style exploration system.

Investment Thesis: Piracanjuba North's Emerging Position

Magnum's Azimuth REE Project is building the technical case for a potentially large, multi-centre ionic adsorption clay system in an accessible part of Brazil's Goiás state. Several factors underpin the current investment narrative around Magnum Mining rare earth mineralisation at Piracanjuba North Brazil.

Scale Potential

A 116 km² geophysical anomaly provides the broader exploration canvas, while four separately mineralised centres identified in the current drilling programme suggest the system is not reliant on a single result. The total dataset now includes 214 holes with anomalous TREO returns.

Deposit Type Considerations

IAC deposits, where confirmed, can offer a comparatively simpler metallurgical pathway than conventional hard-rock REE systems, given the loosely bound nature of the REEs within clay minerals. The shallow, soft-regolith nature of the mineralisation may also support lower-cost drilling and mining methods, subject to further studies.

Magnet REE Focus

The MREO suite, comprising neodymium, praseodymium, terbium, and dysprosium, are elements used in permanent magnet technology. Selected intervals have returned desorbable MREO grades that the company says underline the magnet-REE prospectivity of the system.

Operational Execution and Accessible Setting

Six consecutive weekly productivity increases, alongside a programme tracking ahead of the original schedule, point to progress in field execution. With nine rigs on site and a data pipeline feeding toward the Exploration Target and the targeted November MRE, the coming months are expected to bring further exploration updates.

In addition, proximity to Piracanjuba city and established regional infrastructure has, according to the company, supported the pace of the exploration programme without significant logistical constraints. However, as with all early-stage exploration projects, outcomes will depend on the continued delivery of positive results through systematic drilling, metallurgical testwork, and resource definition studies.

Ready to Explore Magnum Mining's REE Project Further?

With a 100% hit rate across 214 drilled holes, four confirmed mineralised centres spanning a 116 km² footprint, and a maiden JORC Mineral Resource Estimate targeted for November 2026, Magnum Mining and Exploration (ASX: MGU) is advancing one of the more compelling early-stage rare earth projects in Brazil. To learn more about the Azimuth REE Project at Piracanjuba North and what it could mean for investors, visit www.mmel.com.au.