The Board and Senior management team comprises a group of highly experienced executives with substantial in-country experience and a stellar track record in creating shareholder value and operating mining assets. With founders and the Board still holding around 60% of the company\u2019s shares, most of which are locked up for two years, it is clear that management is entirely aligned with shareholders and committed to the long haul.<\/p>\n
Furthermore, BRE is well-funded, having successfully completed a significantly oversubscribed Initial Public Offering (IPO) of AU$50m at AU$1.47 per share on the ASX. The IPO attracted exceptionally high-quality investors, including Gina Reinhardt\u2019s Hancock Prospecting, coal giant Whitehaven Coal, top institutional funds, and several large family offices.<\/p>\n It is no surprise that Brazilian Rare Earths attracted such a star-studded register! While many listed companies boast projects with grades measured in parts per million (ppm),\u00b9 and the very best projects in operation today, such as Lynas\u2019 Mt. Weld and MP Materials\u2019 Mountain Pass, have grades ranging from approximately 6-8% Total Rare Earths Oxides (TREO),\u00b2 BRE has recently announced significant intercepts as high as 34% TREO and as they say \u2018grade is king!\u2019 In fact, the weighted average of BRE\u2019s recently published diamond drilling results in their ultra-high-grade Monte Alto Project was 18.8% TREO. Fig. 2 below illustrates how these average intercepted grades compare to the JORC Reserve grades of the major rare earth deposits globally.<\/p>\n However, a closer examination of these numbers reveals that these results are even more exceptional than they initially appear. It\u2019s important for readers to understand that rare earths consist of 17 chemical elements with vastly different uses and values. For example, cerium (Ce) trades for only a few dollars per kilo, while terbium (Tb) trades for over US$1,000 per kg. With the global shift towards sustainable energy, rare earth elements (REE) are increasingly vital, especially in manufacturing high-strength permanent magnets for electric vehicles and wind turbines.<\/p>\n The so-called \u2018light magnet rare earths\u2019 neodymium (Nd) and praseodymium (Pr), as well as the \u2018heavy magnet rare earths\u2019 dysprosium (Dy) and terbium, are expected to be in high demand going forward, with many specialists predicting significant supply deficits and material price appreciation. Rather than being focused on head grades (TREO), what\u2019s important is to examine the underlying grades of the individual rare earth elements that make up the TREO. For example, a project with a very high TREO count composed entirely of Ce may be far less valuable than a project with a lower grade consisting entirely of Tb, given that Tb tends to trade at roughly 1,000 times the price of cerium currently.<\/p>\n To put this in context, the average Nd+Pr grades intersected by BRE stand at an eye-watering 3.0%, higher than most developers\u2019 total grade! Meanwhile, the average Dy+Tb grade stands at 0.15%. By comparison, Northern Minerals Limited (ASX: NTU) has the highest DyTb grades in Australia at 0.073%.<\/p>\n On the other hand, BRE not only has incredibly high levels of NdPr and DyTb but also significant levels of other extremely valuable elements such as Scandium (Sc) at 193 ppm and Niobium (Nb) at 0.6%, making the BRE-controlled Rocha da Rocha Critical Minerals Province one of the most exciting geological discoveries globally!<\/p>\n Additionally, BRE recently announced the acquisition of the Sulista Rare Earths Project, some 80km southwest of Monte Alto, see Fig. 1. On-site reconnaissance sampling of the hard rock outcrops and corestones\/boulders recorded gamma spectrometry readings at three distinct sites within the same range as those obtained for the ultra-high grade REE-Nb-Sc mineralisation near the Monte Alto Project, suggesting the Sulista Project has the potential to host several ultra-high-grade deposits like Monte Alto.<\/p>\n BRE\u2019s exploration team believes that this unique high-grade REE-Nb-Sc mineralisation is provincial in scale and that there is outstanding potential for new high-grade rare earth discoveries along the entire geophysical trendline that runs down the extensive spine of this world-class province.<\/p>\n BRE recently commenced a diamond drill programme at the Velinhas target, located seven kilometres to the south of Monte Alto (see Fig. 1), and has mobilised diamond drill rigs to target high-grade REE-Nb-Sc mineralisation at the Sulista Project, where three distinct high-grade targets have been identified. These priority exploration programmes will be followed by an increasing number of highly prospective regional drill targets.<\/p>\n Currently, both the European Union, through its European Green Deal and recently enacted Critical Raw Materials Act, and the United States, through the Inflation Reduction Act, are moving in the same direction, aligning their strategies and priorities. A significant focus of these superpowers is to end China\u2019s dominance of the world\u2019s critical minerals industry and to promote Western sources of these important elements.<\/p>\n BRE holds strategic significance for Western end users due to the absence of current production sources for heavy rare earths outside China and Myanmar. This situation is a cause for concern among several Western governments, as many crucial military applications rely on technologies dependent on heavy rare earths. Moreover, the fact that the primary source of these materials is China amplifies the anxiety surrounding supply chain security. BRE has the scale to solve much of the Western world\u2019s need for these critical elements, the right team to execute the strategy, and the investors to get there!<\/p>\n![\"\"](\"https:\/\/www.innovationnewsnetwork.com\/wp-content\/uploads\/2024\/02\/Fig.-1.jpg\")
Promising results<\/h3>\n
![\"\"](\"https:\/\/www.innovationnewsnetwork.com\/wp-content\/uploads\/2024\/02\/new-figure-2.png\")
The BRE approach to grades<\/h3>\n
Priority exploration programmes<\/h3>\n
Geopolitical Significance<\/h3>\n
References<\/h4>\n