Enova Mining Initiates Extensive Drilling at Naked Hill REE Project in Brazil to Define Rare Earth Resources

Enova Mining’s Strategic Focus on Ionic Adsorption Clay REE Resources in Southeast Brazil

Enova Mining Limited is advancing its mineral exploration efforts with a strategic emphasis on developing ionic adsorption clay rare earth element resources in Brazil. The flagship Naked Hill Project, situated in the East Salinas region of Minas Gerais, is recognised for its geological potential to host saprolite-based REE mineralisation amenable to extraction. The company prioritises rapid resource delineation to establish economically viable deposits capable of supplying critical metals essential for renewable energy and sustainable manufacturing.

CEO and Executive Director Eric Vesel highlighted in the latest update that the company’s main objective is to quickly delineate an IAC rare earth resource at Naked Hill. This aligns with growing market demand for secure REE supply chains, especially for magnetic rare earth oxides like neodymium and praseodymium, crucial for permanent magnets in wind turbines and electric vehicles. Enova’s Brazilian portfolio extends beyond Naked Hill, including tenements at East Salinas, Santo Antonio do Jacinto, Carai, and Resplendor, where ongoing reconnaissance and geochemical sampling continue.

Three-Phase Auger Drilling Program Targets Saprolite-Hosted REE Mineralisation

The Naked Hill resource delineation program involves 198 auger holes completed in three phases. Phase 1 consists of 61 holes on a 200m 200m grid to provide broad coverage. Phases 2 and 3 will complete the remaining holes on a tighter 100m 100m grid, enhancing geological resolution and resource estimation accuracy. This phased methodology enables adaptive drilling guided by emerging results.

Drilling targets saprolite-hosted REE mineralisation across four prospects: Bald Hill, Naked Hill, Hairy Hill, and Flat Hill. Portable auger rigs facilitate efficient, cost-effective access to near-surface mineralisation. To date, 19 holes have been drilled, including 14 diamond and 5 auger holes, with assays and leach tests reported for 16 holes. Results from each phase will refine geological models and support ongoing resource delineation.

Prior Drilling Validates Ionic Adsorption Clay Processing Potential

Previously, Enova completed 1,009.13 metres of drilling over 16 holes, confirming significant REE mineralisation suitable for IAC processing. Diamond drilling accounted for 14 holes (989.63 metres) across Bald Hill, Naked Hill, Hairy Hill, and Flat Hill, supplemented by 2 auger holes (19.50 metres) at Bald Hill and Naked Hill. These data underpin the current delineation phase by confirming mineralisation presence, extent, and processing characteristics.

Notable results include hole EAS-DD-0006, which returned 17 metres averaging 5,000ppm TREO with 19% NdPr from surface, including a peak 1-metre interval grading 12,732ppm (1.27%) TREO at 24% NdPr between 7 and 8 metres. Another intercept, EAS-AD-0001, yielded 13 metres averaging 2,418ppm TREO and 21% NdPr from surface, with leach recoveries demonstrating mineral processing potential. These findings justified advancing to the current resource delineation stage.

Leach Testing Confirms High Recovery Rates for Magnetic and Heavy REOs

Laboratory leach tests on core samples from two key auger holes confirm the saprolite mineralisation’s amenability to ionic adsorption clay extraction. Hole EAS-AD-0001 at Bald Hill showed 43.2% recovery of magnetic rare earth oxides (MREO) and 38.7% recovery of heavy rare earth oxides plus yttrium (HREO+Y) over 13 metres, with peak recoveries of 84.4% for both MREO and HREO+Y within the 8 to 9 metre interval. These high recovery rates highlight the mineralisation’s suitability for hydrometallurgical processing, critical for project viability.

Hole EAS-AD-0002 at Naked Hill recorded 31% MREO and 39.1% HREO+Y recovery across 2.5 metres from 4 metres depth, with peak recoveries of 37.9% MREO and 41.2% HREO+Y. Variations in recovery rates reflect geological and mineralogical differences, which the ongoing three-phase drilling program aims to delineate. The leach testing is part of integrated mineral characterisation and hydrometallurgical work led by consultant Alexandre Rocha Da Rocha and Geological Consultores Associados, supporting a multidisciplinary technical approach.

Medina Intrusive Granite Complex Underpins REE Mineralisation

Geological mapping and drilling confirm that REE mineralisation at Naked Hill occurs within IAC-bearing saprolite overlaying the Medina Intrusive Granite Complex. This setting aligns with globally recognised granite-derived saprolite systems favourable for IAC REE deposits. The granitic source rock enriches REEs, which are concentrated in the saprolite through weathering, forming mineralisation amenable to hydrometallurgical extraction. Understanding this system is key to predicting mineralisation distribution.

The granite-hosted REE system offers geological precedent for extensive, near-surface, economically extractable deposits characterised by broad lateral extent and minimal overburden. The Medina Intrusive Granite Complex represents a substantial granitic body, providing a large mineralisation footprint. The ongoing drilling program seeks to quantify the spatial relationship between granite contacts and REE-enriched saprolite, defining geological controls on mineralisation across prospects.

Integrated Mineral Characterisation and Hydrometallurgical Testing Advance Project Development

Alongside drilling, Enova is progressing integrated mineral characterisation and hydrometallurgical test work to optimise selective REE extraction from saprolite mineralisation. Led by experienced geological consultants, this program identifies REE-bearing minerals, grain size, liberation, and associations critical for processing design and efficiency. Hydrometallurgical tests assess selective recovery methods for magnetic and heavy REEs while minimizing costs and environmental impact.

This concurrent approach enables drilling results to inform metallurgical priorities and vice versa, accelerating project advancement. Outcomes will support transitions from resource definition to mineral resource estimation, preliminary economic assessments, or engineering studies. Enova confirms ongoing commitment to mineral characterisation and hydrometallurgical testing at Naked Hill.

Regional Exploration Expands Across Enova’s Brazilian Tenements

Beyond Naked Hill, Enova continues exploration across its Minas Gerais tenements, conducting field reconnaissance, geochemical sampling, and auger drilling at East Salinas, Santo Antonio do Jacinto, Carai, and Resplendor. These activities aim to generate new targets, meet statutory obligations, and evaluate the mineral rights portfolio.

This regional work diversifies exploration risk while advancing the primary Naked Hill resource. Enova plans to report results as available, indicating ongoing exploration progress. Maintaining a broad portfolio reflects the company’s view of potential additional REE mineralisation in East Salinas and other areas, balancing near-term resource delineation with long-term value creation.

Global Market Drivers Boost Demand for REE Resources and Supply Security

Enova’s drilling program aligns with strong global demand for rare earth elements driven by renewable energy policies and electric vehicle growth, which increase requirements for magnetic REOs like neodymium and praseodymium. These elements are critical for permanent magnets in wind turbines and EV motors. Current supply chains are concentrated geographically, raising security concerns and prompting governments to seek diversified sources.

Brazil’s ionic adsorption clay REE deposits offer a promising alternative supply. Developing economically viable REE resources in Brazil could enhance supply chain diversification and reduce geopolitical risks. This favourable macroeconomic environment supports exploration projects with strong geological and processing credentials. Enova’s rapid resource delineation at Naked Hill positions it to capitalize on these market conditions, contingent on confirming sufficient tonnage and grade.

Upcoming Milestones and Investor Watchpoints

Enova’s update highlights continued resource delineation drilling, mineral characterisation, and hydrometallurgical testing to advance Naked Hill. The immediate milestone is completing Phase 1 auger drilling with 61 holes on a 200m 200m grid, providing initial mineralisation extent data at Bald Hill and refining geological models. Phase 1 results will guide Phases 2 and 3, which use a finer 100m 100m grid to define mineralisation continuity.

Investors should monitor assay results from Phase 1 for REE grades and spatial continuity, as well as leach test data to assess processing recoveries. Completion of mineral characterisation and hydrometallurgical studies will underpin future process design and economic evaluations. Subsequent project phases may include JORC-compliant resource estimation, preliminary economic assessments, or engineering studies, marking key steps toward commercialisation.