Canamera logs positive rare earth results in ionic clays

Auger drilling with dozens of holes at Canamera Energy Metals’ (CSE: EMET; US-OTC: EMETF) Turvolândia project in southeast Brazil has confirmed near-surface rare earths mineralization in ionic clays.

Highlight hole TUV-AUG-014 returned 13 metres grading 3,255 parts per million (ppm) total rare earth oxides (TREO) from surface, including 3 metres at 5,486 ppm TREO, Canamera reported Wednesday. Hole TUV-AUG-021 returned 15 metres grading 1,469 ppm TREO from 1 metre depth. Turvolândia is in Minas Gerais state and about 290 km northwest of Rio de Janeiro.

“The first 27 holes at Turvolândia indicate the potential for an ionic clay mineralized rare earth system which could stretch across the eastern grid, with multiple holes returning elevated total rare earth oxide grades from surface,” Canamera CEO Brad Brodeur said in a release.

Light and heavy RE

The eastern grid data stands out for the light rare earths neodymium and praseodymium and the heavy rare earths dysprosium and terbium forming up to 42% of the TREO in the best intervals, Brodeur added.

Rare earths are essential components in magnets and technologies needed for the green energy transition. They have taken on high geopolitical significance as Western countries seek to develop supply chains outside the influence of China, which controls most of their mining and processing.

Accessible deposits

Turvolândia’s rare earths deposit – like others in Brazil – occur in soft and near-surface ionic clays that don’t require drilling or blasting to access. Many of those characteristics are shared with Meteoric Resources’ (ASX: MEI) Caldeira project, the largest ionic adsorption clay rare earths deposit outside China. Turvolândia is about 80 km east of Caldeira.

Canamera shares were flat at 55¢ apiece on Wednesday morning in Toronto, valuing the company at $38.8 million. The stock has traded in a 12-month range of 19¢ to $1.19

Another highlight hole, TUV-AUG-006, cut 7 metres at 1,865 ppm TREO from surface. About 20% of its mineralization is heavy rare earths. Hole TUV-AUG-001 returned 6 metres grading 1,137 ppm TREO from 13 metres depth.

Open at depth

Nine of the 27 reported holes stopped in elevated TREO zones due to conditions in the ground which indicate that mineralization remains open at depth, Canamera said.

The mineralized zone across the project’s eastern grid measures about 1,200 metres by 1,100 metres, covering an area of about 83 hectares.

Canamera has completed 721 metres of a 1,000-metre drill program and plans further reverse-circulation drilling and a lidar survey of Turvolândia. Brazil hosts Latin America’s sole rare earths producer, Serra Verde’s Pela Ema mine in Goias state.

Pela Ema and Caldeira were cited in an analysis last October from BMI, which said Brazil is emerging as “Latin America’s rare earth powerhouse” due to its huge reserves, advanced projects, strong government and foreign investment and international partnerships.