Highlights
Brazilian Rare Earths has reported a new high-grade find at Sulista South.
An updated resource estimate for Sulista is planned before year end.
A pilot plant at Camaari is part of the company’s processing push.
Brazilian Rare Earths
(ASX:BRE)
Brazilian Rare EARTHS Ltd (ASX:BRE)
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Last Updated at: 2026-10-06T05:10:00Z
is in focus after reporting a new high-grade rare earth discovery at Sulista South in the Brazilian state of Bahia, with first-stage drilling intersecting mineralisation along a strike of roughly half a kilometre and the company planning an updated resource estimate before the end of the year. It is one of the key developments in today’s ASX Rare Earth Minerals coverage.
What Brazilian Rare Earths Found
The discovery sits a short distance south of the existing Sulista East deposit, according to reporting by CNN Brasil on the company’s announcement. Drilling identified mineralisation over a strike length of around half a kilometre, with several broad intervals grading several units of total rare earth oxide.
One narrow interval returned an exceptionally high grade, though the company and local coverage both noted that it reflects a specific section of core rather than the average grade of the new zone. Assays for most of the first-stage holes had been received at the time of the announcement, with the remainder still pending.
The first-stage program was designed to test the area quickly rather than define a resource, so the results are best read as proof that the system extends beyond the known deposit. Follow-up drilling will determine how continuous the mineralisation is between holes and at depth.
How Sulista South Relates to Sulista East
Sulista East already hosts a formal mineral resource split between indicated and inferred categories. The new results are not included in those figures, which means the Sulista South discovery represents additional mineralisation that could feed into a larger resource base over time.
The company plans more drilling at Sulista South alongside a much larger campaign across an untested corridor in the district. At Sulista East, further drilling aims to lift geological confidence and convert a meaningful share of inferred material into the indicated category.
A larger resource base at Sulista would strengthen the case for a regional processing hub, since more high-grade feed from nearby deposits can help keep a central plant running at capacity over a longer period.
Monte Alto Remains the Centrepiece
Brazilian Rare Earths’ flagship remains Monte Alto, part of the broader Rocha da Rocha mineral province in Bahia. Monte Alto hosts a resource of very high-grade primary and residual mineralisation and underpins a scoping study for an integrated mine and processing operation.
Sulista was not included in the economics of that study. The company has said it could, in time, become an additional source of high-grade feed for the same processing hub, depending on how the resource grows and on further technical work.
The scoping study outlined an integrated operation linking the mine with a processing facility near Salvador. Its headline economics drew attention because of the very high grades at Monte Alto, which reduce the volume of ore that needs to be mined and treated.
Processing Ambitions at Camaari
The company’s strategy goes beyond producing concentrate. It began operating the first stage of a pilot plant at Camaari, near Salvador, last month, and expects a second phase focused on hydrometallurgy and separation to start around the middle of next year.
The plan is to produce separated neodymium-praseodymium oxide, used mainly in permanent magnets, along with a heavy rare earth concentrate containing elements such as dysprosium, terbium, gadolinium, samarium and yttrium. Uranium is also expected to be recovered as a co-product.
The pilot plant is intended to de-risk the flowsheet before any commercial-scale build. Operating data from the first stage will inform engineering for later phases and give prospective customers samples of product to assess.
Why Downstream Matters
Most rare earth processing capacity sits in China, which gives Chinese refiners significant leverage over pricing and supply. Projects that can separate oxides outside China tend to attract strategic interest from governments and manufacturers seeking alternative supply.
By building separation capability in Brazil, the company is positioning itself as a supplier of finished products rather than raw concentrate. That approach is more capital-intensive but can capture more of the value chain.
Index Inclusion and Market Profile
Brazilian Rare Earths joined the ASX 300 in the September quarterly rebalance, a move that tends to broaden the pool of funds tracking the stock. Index inclusion often brings additional liquidity and visibility, particularly for companies that have grown quickly.
The broader market faded from its early advances on Monday, with resource stocks among those that reversed. Rare earth names have traded unevenly in recent weeks, with company-specific news flow playing a large role in individual moves.
Inclusion in a broader benchmark also tends to bring the stock onto the radar of active fund managers who use the index as a starting point for screening mid-sized resource companies.
What to Watch Next
Remaining assays from the first-stage holes at Sulista South are the most immediate catalyst, followed by results from the next round of drilling. The updated Sulista resource estimate, flagged for the end of the year, will show how much the discovery adds.
Progress at the Camaari pilot plant, including the start of the second phase next year, will be equally important. Together, those milestones will shape how the market values the company’s integrated strategy.
Any update on strategic partnerships or offtake discussions for future separated products would also be closely watched, given the strategic value of supply sourced outside China.