Gold Mountain Unlocks Major Rare Earth Potential at Down Under Project
Gold Mountain Limited (ASX: GMN) has defined a substantial Exploration Target at its Irajuba Prospect within the Down Under Project in Brazil, marking a significant milestone in the company's development of its rare earth element (REE) portfolio.
High-Grade REE Discoveries Validate Project Potential
Recent drilling results from an additional 35 holes at the Irajuba Prospect have confirmed extensive high-grade Total Rare Earth Oxide (TREO) mineralisation, with exceptional intercepts including:
- 20 metres @ 1,282 ppm TREO from just 5 metres depth
- 7 metres @ 1,863 ppm TREO from 4 metres depth
- 10 metres @ 1,929 ppm TREO from 6 metres depth, including 2 metres @ 4,960 ppm TREO
- 8 metres @ 2,006 ppm TREO from 7 metres depth
The results have enabled Gold Mountain to define an Exploration Target of 30-50 million tonnes grading 1,100-1,600 ppm TREO in the area scheduled for diamond drilling. This is surrounded by a contiguous zone with an additional Exploration Target of 100-140 million tonnes, highlighting the significant scale of the mineralised system.
"As Executive Director, I am delighted with the outstanding results from the additional 35 shallow auger drill holes at the Down Under Project. With assays returning up to 5,004 ppm TREO and consistently high proportions of Magnet Rare Earth Oxides (MREO), this program further validates the project's strong potential. Notably, the thick and open-at-depth mineralisation is particularly encouraging, presenting significant upside for further exploration and resource definition." – David Evans, Executive Director
Understanding Ionic Adsorption Clay REE Deposits
A key feature of the Gold Mountain rare earth potential at the Down Under Project is its potential to host ionic adsorption clay (IAC) type REE deposits. These deposits are highly sought after in the global rare earth industry for several reasons:
IAC deposits typically occur in deeply weathered lateritic profiles where rare earth elements have been leached from primary rocks and subsequently adsorbed onto clay minerals. Unlike hard rock REE deposits, which require energy-intensive crushing, grinding, and complex chemical processing, IAC deposits allow for relatively simple extraction using ion-exchange methods.
The most valuable aspect of IAC deposits is their typically higher proportion of heavy rare earth elements (HREEs) and magnet rare earth elements (MREOs), which command premium prices in the market due to their critical applications in high-technology industries.
The drilling at Irajuba has consistently shown high proportions of magnet rare earths (MREO/TREO-CeO2) ranging from 57% to 73% across significant intervals, similar to Prospech's Finnish REE project which yielded impressive results with heavy rare earth enrichment, indicating the potential for a valuable REE deposit with favourable economics.
Accelerated Exploration Program Underway
Gold Mountain is moving quickly to advance the Down Under Project with a comprehensive exploration strategy:
- Diamond drilling is set to commence shortly at the Irajuba Prospect, focusing on the initial Exploration Target area with potential for 30-50 million tonnes
- Continued auger drilling to identify new areas for future Exploration Targets
- Additional stream sediment sampling to complete coverage of the northern parts of the project area
- Extended auger drilling in areas with high-grade intersections to support estimation of additional Exploration Targets
- Collection of metallurgical samples from the diamond drilling program to assess the desorbable REE content
The company has already positioned a diamond drill rig at the IR-1 prospect, ready to begin drilling as of 22 July 2025. This approach is reminiscent of Zimi's strategy at Mt Clere, where securing drilling approvals for untested anomalies proved to be a critical step in advancing exploration.
Investment Thesis: Strategic Position in the REE Sector
Gold Mountain rare earth potential has been strategically positioned in a world-class REE province, with exploration rights covering a substantial 245 km strike length. The company's exploration success at Irajuba provides strong validation of its geological model and acquisition strategy.
The defined Exploration Target represents just one of several promising targets identified across the extensive Down Under Project area. With auger drilling successfully intersecting lateritic weathered profiles and identifying significant concentrations of laterite-hosted REE mineralisation across multiple areas, Gold Mountain has established a pipeline of potential resource areas.
The shallow nature of the mineralisation (starting from just 4-7 metres depth) suggests favourable economics for any future development, with low strip ratios and potentially straightforward mining operations.
Furthermore, the high proportion of magnet rare earth elements in the mineralisation is particularly significant given the critical importance of these elements in the manufacture of permanent magnets used in electric vehicles, wind turbines, and other clean energy technologies.
Why Investors Should Follow Gold Mountain
Gold Mountain represents a compelling opportunity in the rare earth sector for several reasons:
- Established exploration success with consistently high-grade REE mineralisation across multiple target areas
- Substantial scale potential with an initial Exploration Target of 30-50 million tonnes and a broader potential of 100-140 million tonnes
- High proportions of valuable magnet rare earth elements crucial for the green energy transition
- Shallow mineralisation suggesting favourable future development economics
- Multiple additional targets across a 245 km strike length providing significant exploration upside
- Diamond drilling program about to commence, providing potential for significant news flow
Gold Mountain rare earth potential has positioned itself at the forefront of rare earth exploration in Brazil, a country increasingly recognised for its potential to host significant REE deposits. With the global push toward electrification and renewable energy driving demand for magnet rare earths, the company's timing and strategic focus place it well to capitalise on these macro trends.
As Gold Mountain advances from exploration to resource definition at the Down Under Project, investors have an opportunity to participate in the development of what could become a significant new source of rare earth elements for the global market. Additionally, the company's approach mirrors successful strategies seen in other promising discoveries like Great Western Exploration's copper-gold find and Inca Minerals' gold discovery at the Hurricane Project, both of which demonstrate how systematic exploration can lead to substantial mineral discoveries.
In the competitive mineral exploration landscape, Gold Mountain's progress stands alongside other significant finds such as the recent gold discovery at Cape Ray Shear, highlighting the ongoing potential for new resource developments globally.
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