AUS
NZ
UK
CA
USA
IND
Highlights
- Axel REE announces maiden gallium resource in Brazil
- Resource positioned as a potential new supply chain alternative
- Strategic location supports growth in rare earth and gallium production
Axel REE (ASX:AXL) has announced a maiden mineral resource estimate for gallium at its Caladão project in Brazil, establishing what is considered one of the most significant standalone gallium discoveries globally. This development comes at a time when markets remain highly attentive to supply chain diversification across critical minerals, with the ASX 200 index reflecting the growing importance of such resources to international markets.
The classification of the resource marks a milestone for Brazil, providing the country with its first in-situ gallium deposit. The discovery adds strategic value by opening pathways for Brazil to strengthen its position in the global supply of critical minerals, particularly at a time when supply dynamics are shifting worldwide.
Resource With Growth Potential
The maiden resource extends across a broad area within Axel REE’s exploration ground. The company has highlighted that the gallium-bearing layer is situated close to surface, suggesting potential for simplified extraction processes. Importantly, this mineralisation occurs above an established rare earth system, offering scope for a combined development strategy that could support efficient processing of both gallium and rare earth elements.
Further drilling and exploration are planned, with expectations that additional areas of similar geology may expand the resource footprint. This indicates scope for long-term production opportunities within the Caladão tenure.
Advancing Metallurgy and Extraction Techniques
The current estimate builds upon earlier metallurgical studies that confirmed gallium recoveries using conventional leaching methods. Axel REE is now advancing a process that could allow the extraction of both rare earth elements and gallium through a staged leaching approach.
This model draws on established techniques seen in global markets, where heap leaching has demonstrated efficiency. Collaboration with Brazil’s mineral research institutions is also underway to refine beneficiation methods and ensure sustainable, cost-effective processing.
Strengthening Brazil’s Role in Global Supply Chains
The discovery positions Brazil as an emerging player in gallium production, an area historically dominated by a small number of markets. Located in Minas Gerais, a region often referred to as Brazil’s “Lithium Valley,” the Caladão project benefits from supportive infrastructure and a strong presence of critical mineral operations.
As global restrictions on gallium exports have highlighted vulnerabilities in supply, the Caladão discovery presents an opportunity for diversified sources to meet the needs of high-technology industries. Axel REE’s continued exploration and development efforts suggest the project could play an important role in reshaping supply chains over the long term.
Frequently Asked Questions
- What is gallium used for?
Gallium is a critical metal widely used in semiconductors, electronics, and renewable energy technologies. - Where is Axel REE’s Caladão project located?
The Caladão project is located in Brazil’s Minas Gerais region, often known for its strong critical minerals sector. - How does Axel REE plan to process gallium?
The company is developing a staged leaching process that would allow rare earth elements to be extracted first, followed by gallium, using techniques similar to established global methods.
