Magnum Mining Advances Rare Earth Leach Testing at Palmares Project in Brazil

Rare Earth Push Gains Momentum

Magnum Mining and Exploration Ltd (ASX: MGU) has confirmed that leach testing has commenced on high-grade rare earth element (REE) samples from its Palmares Project in Bahia State, Brazil . This marks a significant step forward in advancing the project toward potential development, following strong trench and rock chip assays earlier this year.

The Feirinha Prospect, part of tenement 871332/2020, has delivered standout grades of up to 1.69% TREO from trenches and 1.31% TREO from rock chips. Notably, the mineralisation includes valuable heavy rare earths (Dy, Tb, Y) and magnet metals (Nd, Pr), essential for electric vehicles, wind turbines, and defence applications.

CEO Commentary

Magnum Chairman Michael Davy described the move to leach testing as a prudent, low-cost step before committing to drilling:

Source: MGU ASX Announcement 

Why Palmares Matters

The Palmares REE Project comprises 18 granted claims across 348 km², within a broader portfolio of 1,549 km² (including the Azimuth Project). To date, less than 0.1% of Palmares has been systematically tested, leaving vast exploration upside.

The G2 pegmatites—averaging 0.40% TREO—are particularly encouraging, with multiple samples exceeding 0.5% TREO. Their mapped 1.3 km strike length, with signs of repetition along trend, suggests the potential for a substantial mineralised system.

Magnum is positioning Palmares alongside other ASX-listed players operating in the region, highlighting its district-scale potential.

Rare Earth Peers: Where Magnum Stands

Magnum’s progress emerges as Brazil gains momentum as a rare earth jurisdiction. Analysts note that global REE demand is projected to double by 2040, with Brazil positioning itself as a strategic supplier outside China .

Peers worth comparing:

Magnum’s position is unique—it combines sizeable Brazil tenure with early-stage advancement. While not yet in production like Lynas or Arafura, its Brazil focus reduces competition risk and capital intensity. A successful leach result could catapult it from speculative explorer to emerging regional contender.

Next Steps

• Leach Testing: Fifteen samples have been dispatched to ALS Laboratories, with results expected by late September.
• Drilling Program: Dependent on leach recoveries, Magnum will design its first drilling campaign targeting extensions of high-grade mineralisation.
• Regional Review: The company’s geologist is assessing other tenements within Palmares and the Azimuth Project (72 permits covering 1,201 km²) to build a pipeline of future targets.
   

Should the leach testing confirm favourable recoveries, Palmares could rapidly transition to drilling, accelerating Magnum’s pathway toward positioning as a serious REE contender in Brazil.

Market Reaction

At the time of writing, Magnum shares (ASX: MGU) were trading at A$0.011, up 57.14% on the day, with over 22.2 million shares changing hands. The move reflects strong investor interest in rare earth exploration, particularly as governments worldwide seek to diversify supply chains away from China.