Transcription of The Stock Network Interview with Axel REE (ASX:AXL), Managing Director Dr Patience Mpofu
Lel Smits: Axel REE is growing a rare earths resource of more than 700 million tonnes at its flagship Caladao project in Brazil. Since last speaking with The Stock Network, Axel has stepped up work across both its Brazilian projects as Linus moves to acquire meteoric resources nearby. Brazil holds the world’s second largest rare earths reserves but produces less than 1% of global supply.
I’m joined today by Managing Director Dr Patience Mapofu to discuss the Caldas program, the Caladao field trial and gallium ahead of IMARC and the Rockstars mining investment event in Sydney. Patience, welcome back to the Stock Network. Well, thank you.
Patience Mpofu: Thanks, Lel. It’s always good to be back. Thank you.
Lel Smits: Lovely to have you on. Keen to hear more about fast-tracking the Caldas rare earths after the Linus deal. As we know, Linus has a deal for meteoric resources.
That’s really put fresh attention on the Pocos de Caldas district where Axel also explores. Patience, what did your review of the Caldas drilling show and also why are you speeding it up now?
Patience Mpofu: So, look, I think the proposed transaction has obviously reinforced our view of our strategic asset, which is the Caldas. We have done the work previously and it has actually shown us that we have quite high grades, about 5,735 ppm of our trio, which is pretty actually shallow.
That’s about 13 meters. So that’s a very interesting asset for us. We have always been having it on the radar.
But of course, now with the new interest, it makes us to have new views in terms of upgrading our resource base and of course, supporting our Caldas. I mean, our Caldas is still the preferred resource. That’s what we’re working on in terms of our field trials.
And yeah, let’s see how it goes.
Lel Smits: Fantastic. And Axel has also chosen the first well field at Woolwich to test in situ recovery, which draws rare earths from clay without an open pit.
Patience, when does testing start? Also, what does it need to show from your perspective?
Patience Mpofu: So look, our Woolwich has always been our preferred asset because we’ve done quite a lot of work. As you rightly said, we did our lab test on our Woolwich. We obviously did our column testing, which we announced our results showing 560 ppm in terms of recoveries.
So now obviously going forward, we are going to be doing our hydrogeological work. And of course, then the field test. And that’s important because we have to see how the lexiviant is going to move in the rock, because that’s different when you have it in the lab.
So let’s take what we have done in the lab and take it to the field and be able to demonstrate that we can be able to recover the same recoveries that we’ve got, or maybe even more. So that’s our next step. And of course, we’re going to be looking at our scoping study.
Once we get the design parameters for capital and opex, and we can be able to have our economics. Wonderful. And finally, Patience, Australia and the United States are backing new rare earths and gallium supply outside of China.
Where do you think Brazilian projects like Caladao fit into that supply chain? Oh, look, absolutely. I mean, Brazil, I mean, let me take you back in terms of what the resource, the scale of the resource in Brazil, if you think about it right now, in terms of production profile, Brazil contributes approximately less than 1.9%. It’s actually classified under other. And then when you look at the reserves, that’s approximately about 23% reserves in Brazil, global, right? And China still dominates, but it shows you the scale that Brazil has.
So what are we talking about? We’re talking about rare earth, and rare earth are required for the energy transition, they’re required for electric vehicles, and that’s an important part. And what a better way for Exel to contribute in that supply chain. And most importantly, everybody’s talking about diversification of supply chains.
And Brazil is posing to be that alternative to China, because we do need to diversify our supply chain.
Lel Smits: Well, Patience, I appreciate the update from Axel. We look forward to hearing more when you’re on stage at IMAC and the Rockstars Mining Investor event next week.
Patience Mpofu: Absolutely. Looking forward to meeting everybody at IMAC. Thank you.
Ends