High-Grade REEs Discovered at Capão Bonito Strengthen PVW's Brazilian Focus
PVW Resources has announced compelling assay results from its final 13 drill holes at the Capão Bonito East Block in Brazil, confirming extensive near-surface rare earth element (REE) mineralisation with peak values reaching 5,662 ppm TREO.
Outstanding Drilling Success Confirms Project Potential
The Phase 1 drilling program at Capão Bonito has delivered exceptional results, with 89% of the 56 holes drilled by PVW intersecting mineralisation exceeding 500 ppm TREO. This widespread mineralisation occurs near surface, with most intercepts beginning at depths of 5 meters or less, significantly enhancing the project's economic potential.
Notable high-grade intercepts include:
- 14m @ 2,440 ppm TREO from surface (CPO-TD039)
- 7m @ 1,234 ppm TREO from surface (CPO-TD040)
- 11m @ 1,129 ppm TREO from 4m (CPO-TD041)
- 8m @ 1,291 ppm TREO from surface (CPO-TD046)
- 4m @ 1,311 ppm TREO from surface (CPO-TD047)
Importantly, many holes terminated in mineralisation, suggesting significant potential for additional REE resources at depth. The positive correlation between intercept width and TREO grade indicates that broader mineralised zones often correspond with higher concentrations, a critical factor for future drilling prioritisation.
"Capão Bonito continues to deliver compelling results, further positioning it as a central component of our Brazilian REE strategy. The completion of Phase 1 at the East Block has confirmed widespread, shallow mineralisation with high-grade intercepts."
— Lucas Stanfield, PVW CEO
Understanding Ionic Adsorption Clay REE Deposits
Ionic Adsorption Clay (IAC) REE deposits represent a critical source of rare earth elements that are typically easier and more cost-effective to process than traditional hard rock deposits. These deposits form when rare earth elements released during weathering become adsorbed onto clay minerals in the weathering profile.
REE deposits are classified into several types based on their formation and mineral composition. Ionic Adsorption Clay deposits are particularly valued for their processing advantages compared to hard rock deposits such as carbonatites or monazite-bearing formations.
In IAC deposits, rare earth elements are weakly bonded to clay particles through an ion-exchange mechanism. This bonding occurs during weathering processes, as primary REE-bearing minerals break down and release their elements into solution. The positively charged rare earth ions then attach to negatively charged sites on clay minerals.
What makes IACs particularly valuable is their typically high concentration of heavy rare earth elements and the relatively simple extraction process, which often involves a simple leaching method rather than complex, costly processing required for hard rock deposits.
The PVW Resources rare earth discovery at Capão Bonito is currently undergoing testing to confirm its IAC characteristics. The company is testing 450 samples using ammonium sulphate leach testing to confirm the IAC characteristics of the mineralisation. Confirmation of IAC-style mineralisation would potentially position the project for cost-effective development with lower environmental impact compared to conventional REE mining.
Expanding Southeast Hub Strategy
PVW is systematically building a strategic REE hub in southeastern Brazil, with Capão Bonito as the cornerstone asset. The company's next steps include:
- Infill drilling at 400m spacing across northern and southern Capão Bonito sectors
- Deeper drilling to target mineralisation beyond auger limits
- Completion of leach testing on 450 samples to confirm IAC characteristics
- Analysis of pending assays from the Itapeva Target (West Block)
- Expansion of exploration to additional Southeast targets: Sguario, Carambeí, and Cerro Azul
Early exploration at the nearby Sguario Project, located just 20km from Capão Bonito, has already yielded promising results, including:
- 6.5m @ 1,515 ppm TREO including 464 ppm NdPr oxide from surface
- 1.5m @ 2,796 ppm TREO including 902 ppm NdPr oxide
These initial results from Sguario suggest mineralisation characteristics similar to those observed at Capão Bonito, supporting PVW's hub strategy approach to its Brazilian rare earth assets.
Strategic Portfolio Optimisation
While advancing its Brazilian REE projects, PVW is also implementing a broader strategic Portfolio Optimisation approach. This allows the company to focus resources on high-potential assets while maintaining exposure to both strategic metals and precious metals sectors.
The PVW Resources rare earth discovery at Capão Bonito represents a cornerstone of this strategy, providing a foundation for the company's Brazilian REE hub development. Additionally, the company is:
- Evaluating additional opportunities in Brazil, including precious metals projects
- Assessing options to divest or restructure Australian gold assets to streamline operational focus
- Building a diversified portfolio within Brazil's mining-friendly jurisdiction
This strategic focus aligns with growing global demand for rare earth elements, which are critical components in various high-technology applications, including permanent magnets used in electric vehicles, wind turbines, and electronics.
"As part of our broader strategy to unlock value across our asset portfolio, we are actively evaluating additional opportunities in Brazil, including precious metals projects, which complement our REE exploration focus. At the same time, we are assessing options to divest or restructure our Australian gold assets to streamline our operational focus."
— Lucas Stanfield, PVW CEO
Why Investors Should Follow PVW Resources
The PVW Resources rare earth discovery presents a compelling investment opportunity for several reasons:
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Strategic REE Focus: The company is targeting REEs essential for clean energy technologies and defence applications, positioning it in a high-growth market segment.
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Low-Cost Development Potential: The shallow, near-surface nature of the mineralisation at Capão Bonito suggests potential for cost-effective extraction.
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Experienced Leadership: The company boasts a strong management team with specific experience in rare earths development, including CEO Lucas Stanfield, who previously advanced the Ngualla Rare Earth Project.
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Expanding Project Portfolio: With multiple targets beyond Capão Bonito, PVW offers significant exploration upside potential.
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Clear Development Strategy: The company has outlined a systematic approach to project advancement, from confirmation of IAC characteristics to expansion of exploration across its Southeast Hub.
As global demand for rare earth elements continues to grow, driven by electrification and renewable energy adoption, PVW Resources is positioning itself as a significant player in the development of new REE sources outside of China's dominant market position.
The Team Behind PVW's Success
PVW's exploration and development efforts are led by a team with extensive experience in the mining sector, particularly in rare earths:
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Lucas Stanfield (CEO): Over 20 years' experience in developing gold, rare earth, and critical mineral projects across Australia, Africa, and South America. Previously played a key role in advancing the Ngualla Rare Earth Project.
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Karl Weber (Exploration Manager): More than 25 years of experience in gold and base metal exploration within Australia and internationally, with technical and management positions at various mining companies.
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Gavin Beer (Consultant Metallurgist): A qualified metallurgist with over 35 years of international experience across metallurgical, mineral, and chemical processing industries.
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Luis Azevedo (Non-Executive Director): Holds both a BSc in Geology and a Law Degree, with extensive experience in the resource industry and specialisation in the Brazilian Mining Code.
This experienced team provides PVW with the technical expertise and regional knowledge necessary to advance its Brazilian rare earth projects effectively.
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