Rio’s rare surprise

Core Energy Minerals has secured a major rare earth opportunity in Brazil after Rio Tinto unexpectedly handed over the keys.

The ASX-listed junior has entered a binding agreement to acquire the Itambe rare earth project from Rio Tinto Desenvolvimentos Minerais, a wholly owned subsidiary of Rio Tinto plc. The acquisition has boosted Core Energy Minerals’ stock, which rose 10 per cent in the past day.

The Itambe project spans 327km² across 23 tenements in Bahia State, a Tier 1 mining jurisdiction in north-east Brazil. Originally targeted by Rio Tinto for lithium, early exploration uncovered a significant rare earth anomaly, with soil assays reaching up to 5123 parts per million (ppm) total rare earth oxide (TREO).

“We are extremely excited to be acquiring the Itambe project in Brazil from Rio Tinto,” Core Energy Minerals managing director Tony Greenaway said.  “The vast landholding is extremely prospective for rare earths.”

Despite the high-grade anomalies, Rio Tinto’s work covered only around seven per cent of the tenure, leaving considerable upside for Core Energy to explore. Three distinct zones of widespread mineralisation have been identified in the southern portion of the project, with all anomalies remaining open in multiple directions.

The acquisition includes a $US200,000 cash payment and a 1.75 per cent net smelter return royalty. Core Energy plans a systematic exploration program involving detailed geological mapping, surface geochemical sampling, airborne geophysical surveys and auger drilling to fully assess the rare earth potential.

Greenaway said the project complements Core Energy’s existing Tunas REE project in southern Brazil, where early drilling has already highlighted high-grade TREO in clay-rich saprolite.