Exceptional Gallium Results Extend Across 86km² with Grades Up to 128g/t
Axel REE Limited (ASX: AXL) has announced further exceptional gallium mineralisation from its Phase Two auger drilling program at the Caladão Project in Brazil's Lithium Valley. New results confirm high-grade gallium up to 128g/t Ga₂O₃ from surface in Area B, matching the impressive results previously reported in Area A, with a total mineralised area now reaching 86km².
The company's latest batch of assay results from 97 holes revealed consistent gallium mineralisation with significant intercepts including:
- 12m @ 70g/t Ga₂O₃ from 5m, including 2m @ 124g/t Ga₂O₃ from surface (CLD-AUG-333)
- 8m @ 88g/t Ga₂O₃ from surface (CLD-AUG-393)
- 8m @ 82/t Ga₂O₃ from surface, including 5m @ 95g/t Ga₂O₃ from surface (CLD-AUG-329)
- 16m @ 75g/t Ga₂O₃ from surface (CLD-AUG-351)
- 16m @ 74g/t Ga₂O₃ from surface (CLD-AUG-395)
Notably, the mineralised area tested to date still only covers 20% of the total 430km² Caladão Project area, suggesting significant potential for resource expansion. Many investors are closely watching as scientists discover gallium at Axel Ree Ltd in concentrations far exceeding industry averages.
"The latest Gallium assay results from Caladão continue to demonstrate both high grades and remarkable lateral and vertical continuity across both Area A and now Area B. This consistently mineralised profile supports our strategy to rapidly define a significant maiden gallium and REE resource in area B in addition to the Mineral Resource Estimation for gallium and REE in area A, which is in the MRE calculation phase with SRK."
— Paul Dickson, Non-Executive Chairman
Caladão Project: A Dual Commodity Opportunity
The Caladão Project is emerging as a significant dual commodity opportunity, with strong Rare Earth Element (REE) assays also continuing in Area B. Notable REE intercepts include:
- 11m @ 2,718ppm TREO from 6m (CLD-AUD-310)
- 9m @ 1,618ppm TREO from 1m (CLD-AUG-332)
- 4m @ 1,278ppm TREO from 8m (CLD-AUG-342)
- 7m @ 1,711ppm TREO from 10m (CLD-AUG-414)
The company is progressing well with its Maiden Gallium and REE Resource estimation, with SRK Consulting on schedule to complete the Area A resource calculation by early July. This development follows a series of high-grade rare earth discoveries that have been making headlines in the mining sector.
Understanding Gallium: A Crucial Technology Metal
Gallium is becoming increasingly important in the technology and clean energy sectors, yet it remains relatively unknown to many investors. This rare metal is a crucial component in semiconductors, particularly gallium nitride (GaN) and gallium arsenide (GaAs), which are essential for 5G networks, LEDs, solar cells, and radar systems.
What makes Axel's discovery particularly significant is the context of global gallium supply. Unlike most gallium production, which occurs as a by-product of aluminium and zinc processing (typically yielding only 20-80 ppm in Bayer red mud), Axel REE's Caladão Project is showing primary gallium grades up to 128g/t (or 128,000 ppm) – substantially higher than typical recovery sources.
The strategic importance of gallium has been highlighted recently when China, which produces approximately 80% of the world's gallium, implemented export restrictions. This has created a supply vulnerability for Western economies, making new sources outside China particularly valuable. Furthermore, recent rare earth element company findings have shown promising gallium grades in various regions globally.
Project Geology and Mineralisation
The Caladão Project is located in northeast Minas Gerais, overlying Neoproterozoic sedimentary sequences punctuated by late-tectonic alkaline intrusions. The gallium and REE mineralisation has developed through intense tropical weathering of granitic units, producing a lateritic profile with consistently elevated gallium values.
This weathering profile has created a coherent gallium-rich horizon that starts from surface and extends with remarkable continuity across both Area A and Area B. The lateritic material shows exceptional consistency in both grade and thickness, making it potentially amenable to simple, low-cost mining methods.
Future Plans and Timeline
Axel REE continues to advance the Caladão Project with a clear roadmap:
- Complete the Phase Two drilling program – 512 holes for 7,618 meters already completed across primary targets
- Finalise the Maiden Mineral Resource for Area A – Expected by early July 2025
- Define a Mineral Resource for Area B – In progress following the latest results
- Conduct metallurgical testing – Work underway to determine optimal extraction methods
With all auger samples already forwarded to SGS laboratories, assay results continue to arrive in batches, providing a steady flow of news and potential catalysts in the coming months. The project bears similarities to other rare earth elements discoveries in the region that have shown promising results.
Investment Thesis: Why Axel REE Stands Out
Axel REE represents a compelling investment opportunity in the critical minerals space for several reasons:
-
Dual commodity exposure – Both gallium and REEs are critical minerals with growing demand from technology and clean energy applications
-
Exceptional grades – Gallium grades up to 128g/t from surface are significantly higher than typical recovery grades from aluminium processing
-
Extensive mineralisation – 86km² of confirmed mineralisation with only 20% of the project area tested
-
Simple geology – Near-surface, lateritic mineralisation suggests potential for straightforward, low-cost mining operations
-
Strategic timing – Global supply concerns for both gallium and REEs create favourable market conditions
-
Rapid development pathway – Maiden resource expected soon with multiple catalysts in the near term
| Asset Highlights | Caladão Project |
|---|---|
| Project Area | 430km² |
| Mineralised Area (to date) | 86km² |
| Peak Gallium Grade | 128g/t Ga₂O₃ |
| Drilling Completed | 512 holes (7,618m) |
| Target Commodities | Gallium, REEs |
| Resource Estimate Timeline | Area A: July 2025 |
| Location | Lithium Valley, Minas Gerais, Brazil |
Why Investors Should Follow Axel REE
Axel REE offers investors exposure to two critical minerals with significant growth potential in a time of increasing supply constraints. The company's Caladão Project features exceptional gallium grades and significant REE values, both starting from surface across a vast area with only 20% of the project explored to date.
With a maiden resource calculation nearing completion and multiple catalysts ahead, Axel REE is well-positioned to rapidly advance its project in the near term. The strategic importance of securing non-Chinese sources of gallium and REEs adds further weight to the investment case. Recent samarskite heavy elements findings have also highlighted the increasing importance of diverse rare earth sources.
The company's dual focus on both gallium and REEs provides investors with diversified exposure to critical minerals that are essential for technology advancement and the clean energy transition – exactly the commodities that are seeing increasing demand and strategic importance in global supply chains.
Looking to Capitalize on the Next Major Mineral Discovery?
Stay ahead of the market with Discovery Alert's proprietary Discovery IQ model, which instantly identifies significant ASX mineral discoveries like high-grade gallium and rare earth finds. Understand why major mineral discoveries can lead to substantial returns by exploring the historic examples on Discovery Alert's dedicated discoveries page.
