Australian junior miner Equinox Resources has positioned itself to potentially become the largest tenement holder in a highly prospective region within Brazil’s “red hot” clay-hosted rare earths sector.
With the pegging of a massive area of exploration applications, Equinox is joining the likes of Gina Rinehart in grabbing an interest in this emerging global rare earths province.
Brazil is currently estimated by the United States Geological Survey (USGS) to contain the third largest reserves of rare earths in the world, with 21 million tonnes.
However, while the USGS also reported that the nation produced 80t of rare earth raw materials in 2022, there are significant opportunities to grow that number.
Especially with a rare earth hungry USA stationed to the north.
Equinox’s new Brazilian rare earths strategy has seen the company submit pegging applications for an approximately 1,760 square kilometre mining rights package under the title of the “Campo Grande” project.
The project is strategically located in the rapidly emerging rare earths province in the Bahia state of Brazil and lies near the Rocha da Rocha rare earths project held by Brazilian Rare Earths (ASX: BRE).
That project hosts a Joint Ore Reserves Committee estimate of 510.3 mt at 1,513 parts per million total rare earth oxide.
Brazilian Rare Earths is currently undertaking a $50m initial public offer (IPO) on the ASX with an expected market capitalisation of approximately $315m. Gina Rinehart’s Hancock Prospecting took part in the company’s pre-IPO raise.
The company aims to hit the bourse on December 18.
Major strategic opportunity
Equinox chief executive officer Zac Komur says the Campo Grande project is a major strategic development in the company’s international growth.
“The Campo Grande project represents an outstanding and potentially game-changing growth opportunity for Equinox, located in the heart of one of the world’s most exciting emerging districts for clay-hosted rare earths discoveries,” Mr Komur said.
“The staking of these highly strategic tenements represents the culmination of an extensive review of potential business development opportunities in Brazil, including time on the ground visiting prospective tenements. I am thrilled that we’ve secured this opportunity for our shareholders.”
Detailed review highlights potential
Equinox submitted the Campo Grande tenements application following a detailed review of prospective available ground.
“These findings suggest compelling potential for the discovery of additional ionic clay-hosted rare earths deposits. With this, Equinox is positioned to become the largest tenement holder within the province once granted.”
Across the globe, ionic clay-hosted rare earths have become a highly sought-after commodity for the green-energy transition as they require less capital-intensive mining and processing and deliver more environmentally-friendly outcomes than traditional hard rock deposits.
“Brazil represents one of the world’s premier mining jurisdictions, with a rich resource base, extensive high-quality infrastructure and a supportive legislative regime. It’s a great place to do business, and we’re looking forward to getting an initial drill program underway early next year.”
“Equinox plans to initiate an auger drilling program in early 2024 following the expected granting of the applications.”
Mr Komur says the Brazilian assets complement the company’s advanced iron ore asset in Western Australia and lithium assets in Canada.
