Australian Mines Advancing Rare Earth Discoveries in Brazil's Bahia State

Highlights

• TREO levels exceeding 400ppm recorded in auger drilling at Jequie
• Identification of new exploration targets to expand rare earth enrichment
• Expansion of mineral asset portfolio across Brazil and Australia

Australian Mines (ASX:AUZ), a prominent player in the mining and exploration category, is advancing its exploration initiatives in Bahia state, Brazil. A recent auger drilling campaign at the Jequie project has yielded remarkable findings, shedding light on rare earth oxide concentrations and reinforcing the company’s strategic focus on emerging battery metals and critical minerals. The project, driven by a comprehensive exploration strategy, has uncovered significant intervals enriched in rare earth elements, pointing to the potential of this region as a key resource zone.

Innovative Exploration Techniques and Findings
A series of 72 auger holes covering a substantial distance have been drilled at Jequie, revealing multiple saprolite and clay intervals enriched with rare earth elements. The drilling results indicate that a high percentage of the assay outcomes have recorded total rare earth oxide (TREO) values exceeding 400ppm. Some intervals have displayed extended lengths with enrichment levels, including notable sections that have recorded exceptionally high concentrations. These encouraging results are interpreted as evidence of an ionic clay adsorption process, demonstrated by specific geochemical signatures such as the depletion of certain elements, and highlight the robust nature of the rare earth enrichment present.

Geological Setting and Early Discoveries
The geological context at Jequie is characterized by weathered profiles, including clay and saprolite layers, which are ideal for the accumulation of rare earth elements. Early indications suggest that the processes responsible for enrichment in these layers may be similar to those observed in other prolific rare earth regions worldwide. The identification of distinct REE-in-soil zones has provided clear targets for further exploration. Two primary areas, designated as North Dário Meira Eluvial and South Dário Meira Eluvial, have emerged as key targets for follow-up activities. The recognition of these zones offers a tangible pathway to expand the known footprint of rare earth enrichment in the project area.

Jequie Project Background and Strategic Expansion
Acquired in December 2023, the Jequie project represents a strategic move to unlock emerging opportunities in the battery metals sector. The initial selection of the project was driven by its proximity to geophysical anomalies, including a significant thorium signature, which historically has served as an indicator of rare earth element mineralization. Subsequent geological assessments at the site have revealed promising lithological features, such as the presence of charnockites and leucogranites, which are associated with robust weathering profiles. These features have contributed to the identification of a prolific rare earth system within the region.

In addition to focusing on Jequie, Australian Mines has expanded its land package in the area through the acquisition of additional tenements. This move has significantly increased the company’s stake in a geologically favorable region and positions Australian Mines as a dominant holder in Bahia. The expanded tenement portfolio not only enhances the prospects at Jequie but also opens up new avenues for exploration across a broader area in Brazil.

Advanced Drilling Programs and Future Exploration Plans
Following the promising initial results, plans are underway to implement further exploration programs at Jequie. Future programs may integrate detailed geological mapping, extensive geochemical sampling, and additional auger drilling to refine the understanding of the resource potential. The focus will be on delineating the lateral extent and continuity of the enriched zones, with particular emphasis on the North and South Dário Meira Eluvial targets. Complementary metallurgical testing is also scheduled to better understand the processing characteristics of the material, which will be essential for any future development considerations.

Domestic Endeavors in Scandium Exploration
On the domestic front, Australian Mines has made significant strides with its Flemington project in New South Wales. The project has seen an impressive increase in the known scandium resource, with updated assessments revealing a substantial expansion in the resource inventory. Enhanced drilling density has led to improved resource classification, with a high percentage of the resource now designated as measured and indicated. The majority of the scandium resource is located near the surface, which is a favorable attribute from a development standpoint. This strategic advancement is noteworthy, particularly in the context of the global supply dynamics, where the majority of scandium production is concentrated in a single country. The progress at Flemington reinforces the company’s diversified approach to critical mineral exploration.

Market Dynamics and Global Demand
The findings at Jequie and the advancements at Flemington come at a time when global demand for rare earth elements and other battery metals is experiencing sustained growth. The unique properties of rare earth elements, which are essential for various modern technologies, have sparked international interest. Technological shifts towards renewable energy solutions and the expansion of clean energy infrastructure have underscored the importance of securing diverse sources of these critical minerals. Australian Mines' exploration initiatives are aligned with these global trends, positioning the company to benefit from the evolving landscape of mineral supply and resource development.

Strategic Positioning in a Competitive Landscape
Australian Mines’ focused approach in both Brazil and Australia illustrates a dual strategy designed to maximize exploration potential across key geographies. In Brazil, the emphasis on rare earth oxide enrichment leverages favorable geological settings and advanced exploration techniques. Meanwhile, in Australia, the focus on scandium provides an opportunity to contribute to the supply of a critical mineral with significant industrial applications. This strategic diversification allows the company to mitigate risks while capitalizing on the broader global trends driving the demand for advanced materials.

Local and Regional Benefits
The exploration and potential development of the Jequie project are also anticipated to yield significant local benefits. The project is situated in a region with considerable untapped potential, and its advancement is expected to create opportunities for local communities through job creation and increased economic activity. The expansion of land holdings and ongoing exploration activities are set to generate a ripple effect across the regional economy, fostering ancillary developments and contributing to infrastructure improvements.

Collaborative Efforts and Future Outlook
Australian Mines has engaged with a range of stakeholders and technical experts to ensure that its exploration programs are conducted with the highest standards of precision and efficiency. Collaborative efforts with local authorities and technical service providers have been instrumental in shaping a robust exploration strategy. Continued dialogue with partners is anticipated to further refine exploration methodologies and enhance the overall understanding of the resource base. The company’s methodical approach and commitment to excellence underscore its readiness to navigate the complexities inherent in critical mineral exploration.

The advancements in exploration at both the Jequie and Flemington projects highlight Australian Mines' commitment to harnessing emerging opportunities within the battery metals and critical minerals sectors. By integrating innovative exploration techniques with strategic land acquisitions, the company is well-positioned to expand its mineral asset portfolio and contribute to the supply of essential materials. The ongoing exploration programs and subsequent evaluations will be crucial in unlocking the full potential of these projects, while the combined domestic and international efforts reinforce a robust foundation for future exploration activities.