The Australian-listed Brazilian Rare Earths Limited (ASX: BRE; OTCQX: BRELY) announced a new high-grade discovery of rare earth minerals at the Monte Alto Deposit, near the cities of Jiquiriçá and Ubaíra in Bahia, Brazil.
The discovery was made through drilling in the region to determine the level of rare earth mineralisation at different depths. The analysis was conducted on rock samples from depths of up to 200 meters (656 feet).
The company defined the deposit as an “ultra-high-grade Rare Earths Deposit,” with grades measured by TREO (Total Rare Earth Oxide). TREO is the standard measurement used in mining to indicate the total amount of rare earth elements contained in an ore.
Reported TREO levels vary across certain drill holes, reaching up to 35%. A significant volume of high-grade rare earth was found at depths from 160m to 200m below the surface. Drillhole MADD0230 is a standout result — 25.6 metres at 17.4% TREO, including 8 metres at 28.1% TREO — while the MADD0093 extension confirms that the same high-grade, multi-element system continues down dip.
Bernardo da Veiga, CEO & Managing Director, commented on the results of the drilling and sampling:
“Monte Alto continues to deliver the two outcomes that matter most for future resource growth: exceptional high-grade mineralisation beyond the margins of the existing model and stronger geological continuity within the deposit.”
The sampling also found high quantities of valuable co-products, including up to 10,986 ppm (1.1%) niobium oxide (Nb₂O₅), as well as relevant concentrations of scandium oxide (Sc₂O₃), tantalum oxide (Ta₂O₅), and uranium oxide (U₃O₈).
The Scale and Continuity of the Deposit (3D Visualization)
The most important result of the new announcement was not the level of TREO in a single isolated intersection, but the discovery of an extensive deposit. The company has completed 255 diamond drill holes for 43,974 m in total, with nominal 25m-spaced drilling fences across priority areas providing strong definition of the deposit’s geometry, grade distribution and continuity.
Deeper drilling across the southern portion of Monte Alto has repeatedly intersected high-grade mineralisation beyond the previously modelled deposit limits, with the system displaying increasing widths and grades at depth. With this, BRE’s updated three-dimensional interpretation now identifies additions extending approximately 100m down dip and across approximately 250m of the established deposit strike trend.
Drilled at the current southern, down-plunge margin of Monte Alto, MADD0230 hole delivered one of the most significant high-grade intervals encountered in the southern portion of the deposit with 25.6m at 17.4% TREO from 174m, including an ultra-high-grade core of 8m at 28.1% TREO from 189m. Located at the current drilling boundary, the intersection demonstrates that the mineralised system remains strongly developed at the southern margin.
Notably, the high-grade core preserves the full rare earth and critical mineral signature that distinguishes Monte Alto. The region also shows strong enrichment in niobium, scandium, tantalum and uranium, in addition to its ultra-high-grade rare earth content.
The company highlighted especially rich section that show in a 1m interval from 190m a 32.8% TREO grade, including 3,348 ppm Gd₂O₃ (gadolinium oxide) and 10,986 ppm Nb₂O₅ (niobium pentoxide).
Comparison to International Standards
To compare with international industry standards, rare earth mineral reserves in hard rock deposits, as is the case with the Monte Alto reserve, vary from 3% to 15% among operational mines.
Reserves in China show TREO levels of up to 6%. Mountain Pass in the USA, the only rare earths project currently in operation in the US, has a TREO level of around 8%. High-grade operational deposits in Australia operated by Lynas Rare Earths Ltd (ASX: LYC) have a Mount Weld reserve in the range of 6.4% to 8.6%, with high-grade zones reaching 15%.
The Monte Alto sampling announced by Brazilian Rare Earth has a median TREO of 11%, far above other discoveries.
This discovery highlights the potential and profitability of rare earth mining in Brazil, alongside Serra Verde, which is in the process of becoming part of USA Rare Earth following the acquisition, the already operational Pela Ema Mine in Goiás, and Brazilian Rare Earth’s project in Bahia.
The Next Steps of Brazilian Rare Earth
BRE is announcing plans to expand its footprint at the Monte Alto Project with a multi-front drilling campaign aimed at proving up new high-grade zones.
The company is advancing over 11,400 meters of planned and ongoing drilling, which includes a 5,000-meter step-out program to track growth vectors at the main deposit and a crucial 1,400-meter diamond drill bridge connecting Monte Alto to its North Extension discovery.
The company also wants to explore new areas, expanding sampling 5 kilometers south at the Velhinhas prospect, where a separate program is testing priority targets across the area.
According to the company, this data will deliver an updated Mineral Resource Estimate by the end of 2026.
The company has initiated the planning phase for its upcoming Pre-Feasibility Study, looking to translate the newly discovered reserves into improved project economics, with a focus on mine life and annual production.
Drilling in Bahia identifies high-grade rare earth deposits, including intersections reaching 35.3% TREO at depth, highlighting the scale of Brazilian Rare Earth’s Monte Alto Project.
AUD → BRL
