Aclara Announces 77% Increase IN Inferred Mineral Resources at Carina Module IN Goias, Brazil
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ACLARA ANNOUNCES 77% INCREASE IN INFERRED MINERAL
RESOURCES AT CARINA MODULE IN GOIAS, BRAZIL
TORONTO, ON, August 9, 2024 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased to
announce an updated mineral resource estimate (“MRE”) of the Carina Module, Aclara’s ion adsorption clay
project located in Goiás, Brazil, (the “Carina Module”), which reflects an inferred mineral resource of 298 Mt, an
increase from the previously reported inferred mineral resource statement of 168Mt on December 12, 2023 (the
“2023 Resource Statement”).
Highlights
• The inferred mineral resource for the Carina Module is estimated at 298 Mt, which represents a 77% increase
compared to the previously reported inferred mineral resource of 168Mt.
• The estimate of contained amounts of magnetic elements1 increased approximately 69% compared to the
amount reported in the 2023 Resource Statement, reflecting an increase in contained heavy rare earths
(dysprosium and terbium (DyTb)), from 8,240t to 13,470t, and an increase in contained light rare earths
(neodymium and praseodymium (NdPr)), from 49,832t to 84,565t. Rare earth magnetic elements (i.e. DyTb
and NdPr) are critical to the production of permanent magnets that are used in electric vehicles and wind
turbines.
• Metallurgical recoveries of rare earths from the Carina Module remain compatible with the technology
patented and successfully demonstrated on a pilot scale by Aclara at its pilot plant located in Chile, which is
designed to minimize both cost and environmental footprint.
• The near-surface location of the deposit results in a low strip ratio (0.2) providing a positive backdrop for low-
cost mining operations.
• Secured two additional mining rights adjacent to its existing mineral rights in the Carina Module through a
public bidding process conducted by the Brazilian National Mining Agency (“Agencia Nacional de Mineração”
or “ANM”). The two new mining rights will enable Aclara to explore new areas in the future and further optimize
the design of the Carina Module.
Next Steps
• Anticipated completion of an updated preliminary economic assessment of the Carina Module in September
2024.
• Continuation of the Carina Module pre-feasibility study as previously reported in the Company’s press release
dated May 6, 2024.
• Completion of a 15,200-meter Phase 2 reverse circulation (“RC”) drill campaign aimed at converting inferred
mineral resources to a measured and indicated mineral resources category, which is expected to be
completed by Q4 2024.
• Execution of a metallurgical test campaign during H2 2024 and H1 2025. Sample collections will be obtained
through sonic drilling and sent to SGS Lakefield for mineralogical and recovery characterization, to serve as
additional inputs for the Carina Module prefeasibility study and to form the basis for a new piloting operation.
• Installation and operation of a new semi-industrial scale pilot plant in the State of Goias, Brazil during Q2
1 Magnetic Elements: Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy) and Terbium (Tb).
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2025. The piloting operation will be aimed at (i) confirming the processing parameters and final process
flowsheet design for the feasibility study, (ii) generating a high purity HREE carbonate for separation trials in
support of future off-take agreements, and (iii) demonstrating to relevant stakeholders the environmental
sustainability of the process design.
Aclara COO, Barry Murphy, commented:
“The mineral resource update represents a crucial milestone towards the production of a heavy REE carbonate
from the Carina deposit . With a comprehensive understanding of the entire deposit now in hand, we are well
positioned to advance confidently and accelerate progress on multiple fronts. These include converting inferred
mineral resources to measured and indicated mineral resources, optimizing metallurgical processes, advancing
pre-feasibility and feasibility studies, and continuing with environmental and social licensing requirements. Our
patented metallurgical recovery process, known as “Circular Mineral Harvesting ”, is recognised for its cost
competitiveness and enhanced environmental attributes, and further sets a promising stage for the forthcoming
preliminary economic assessment update. We are very pleased to be significantly expanding our capacity as a
key supplier of magnetic rare earths, particularly dysprosium, which is an essential component in addressing
climate change.”
Mineral Resource Statement
The following table provides a summary of the drilling database in support of the MRE.
Table 1. Summary of drilling database used to update mineral resource estimate.
Drilling Type Hole Count Total Length (m) Sample Count
Auger 283 2,101 1,791
RC 80 2,003 1,998
Total 363 4,104 3,789
At a 7.4 US$/t NSR Cut-off2 the mineral resource estimate reflects 298Mt in inferred mineral resources , which
further represents 1,452 ppm TREO containing an average Dy and Tb grade of 38.9 ppm and 6. 4 ppm,
respectively. The resulting average NSR value of the mineral resource is 28.42 US$/t. The MRE has been reported
in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects
(“NI 43-101”).
The following table provides a detailed summary of the MRE , including TREO, NdPr, Dy and Tb content by
geological domains including types of hydrothermal alteration and regolith horizons.
Table 2. Carina Module Inferred Mineral Resource Estimate (as of May 3, 2024)
Geological
Domain
Mass Oxide Total Grade (ppm) Oxide Content (t)
Mt TREO NdPr Dy Tb TREO NdPr Dy Tb
Upper Pedolith 12.4 814 106 11 2 10,119 1,317 136 21
Lower Pedolith 46.6 1,255 196 23 4 58,465 9,140 1,084 173
Upper Saprolite 221.4 1,527 312 43 7 338,071 69,179 9,586 1,581
Lower Saprolite 13.3 1,358 254 43 7 18,104 3,393 568 88
Saprock 3.8 1,907 404 52 9 7,244 1,535 198 34
Total 297.6 1,452 284 39 6 432,003 84,565 11,573 1,897
2 NSR Cut-off: The NSR Cut-off used is based on the marginal costs of the Carina Module. Using a marginal cut-off to discriminate
between waste and plant feed (ore) ensures that the net revenue value of the rare earth concentrate produced is equal to the cost
of producing it. Since this strategy is applied only to material contained by the "optimal" pit, which contains material that must be mined out,
it will maximize cash flow over the life of the operation.
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Notes:
1. TREO means total rare earth oxides (La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3,
Yb2O3, Lu2O3, and Y2O3).
2. NdPr means neodymium and praseodymium (Nd2O3 and Pr6O11).
3. Dy means dysprosium (Dy2O3).
4. Tb means terbium (Tb4O7).
5. Mineral resources were estimated above an NSR Cut-off of 7.4 US$/t, using average long term metal prices and metallurgical
recoveries outlined below under “Cut-Off Determination & Selection”.
6. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Totals may reflect inaccuracies due
to rounding.
Cut-Off Determination & Selection
The MRE is pit-constrained using GEOVIA Whittle 2022 software, with an overall slope angle of 25° and a mining
cost of US$2.13/t. The MRE is reported at an NSR Cut-off of US$7.4/t, based on processing costs, plus royalties
and general and administrative cost estimates. The NSR calculation uses recoveries that are based on preliminary
metallurgical test work performed by the AGS Laboratory in La Serena, Chile and SGS Geosol Laboratory in
Vespasiano Minas Gerais, Brazil.3
• Selling prices for rare earth oxides: The price estimates used for pit optimization (reported in US$/kg)
are as follows: La2O3 = 0.68, CeO2 = 0.69, Pr6O11 = 144.18, Nd2O3 = 150.75, Sm2O3 = 2.39, Eu2O3 =
27.45, Gd2O3 = 71.55, Tb4O7 = 1,789.25, Dy2O3 = 477.25, Ho2O3 = 137.25, Er2O3 = 59.10, Tm2O3= 0.0,
Yb2O3 = 19.85, Lu2O3 =834.75, Y2O3 = 2.86.
• Metallurgical recoveries: Metallurgical recovery results were obtained from analyses performed by AGS
Laboratory in La Serena, Chile, and SGS Geosol Laboratory in Vespasiano Minas Gerais, Brazil from a
total of 3,789 drilling samples. The analytical assays were tested under conditions that carry out desorption
at a pH of 4.0, plus a synthetic lixiviant solution designed to emulate the predicted concentrations of
recycled salts generated in the closed-circuit process.
• Plant efficiency: Variable by element, ranging from 86 to 98% with an average of 94%.
• Carbonate transportation and selling cost: US$0.032/kg of carbonates.
• Carbonate purity: 92.7%
3 NSR values were estimated based on metallurgical tests using the process parameters developed for the Penco Module in Chile (see the
Company’s press release dated November 9, 2022). No QA/QC program was applied to this initial metallurgical test campaign and, as such,
the results should be considered speculative in nature, and have not been reported in the mineral resources.
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Chart 1: Carina Module NSR Cut-off vs. Tonnage & DREO Grade curve
All technical and economic parameters remain subject to further review in connection with the preparation of the
preliminary economic assessment of the Carina Module, which is scheduled to be reported in early September
2024.
Geological Results from the Drilling Campaigns
The Carina Module maiden resource estimate, previously disclosed in the Company’s press release dated
December 12, 2023, was developed using preliminary results obtained from the initial drilling campaign of 283
auger drill holes (2,101m) completed in 2023. Results from a subsequent drilling campaign, which was completed
between late 2023 and early 2024, included 80 RC drill holes (2,003 m), supplemented those results from the
initial auger drill campaign and resulted in a total of 363 drill holes (4,104 m), and formed the basis for the MRE.
The supplemental RC drill campaign provided sufficient information to allow for a detailed understanding of the
extension and continuity of the regolith over the Massif (see Figures 1 and 2). Furthermore, the RC drill campaign
was used to determine the bottom limits of the regolith ( pedolith and saprolite horizons) where the bedrock was
found to vary between 2 m and 40 m below the natural surface level, with an average depth of 15.8 m. This data
made it possible to verify the lateral continuity of the lower pedolith and saprolite horizons (see Figure 2), as well
as develop an understanding of how the host rock lithologies underwent hydrothermal alteration. These inputs
complemented observations from field mapping and core logging to yield the following geological domains (see
Figure 1):
1. Saprolite: Albitized and greisenized Li-mica leucogranite and albitized medium-grained equigranular pink
biotite granite leucogranite.
2. Saprock, saprolite, lower and upper pedolith : Partially albitized coarse -grained inequigranular pink
biotite granite, inequigranular pink biotite granite, and coarse-grained porphyritic pink biotite granite.
3. NE-SW fault zone system core: Black greisen veins with abundant cassiterite and crackle breccia.
The average drilling grid spacing across the Carina Central (see Figure 1) area was 200 m × 200 m with a grid of
100 m x 100 m in the northeastern part of the area. In addition, auger drilling was conducted in the eastern,
western and southern parts of the Carina Module where the average drilling grid spacing was 400 m x 400 m.
The information gathered from the new drilling campaigns supports the reported increase of 77% in the inferred
resource category. The MRE has limited geological evidence and sampling to imply, but not verify, geological and
grade continuity. The foregoing results remains to be further validated with the current 15,200 m RC infill drilling
campaign for measured and indicated mineral resource estimates.
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Figure 1: Map of the Carina Module area showing the distribution of the types of alteration, superimposed by
lateral extent of the upper and lower pedolith and saprolite subhorizons, including the locations of the Carina
Central and Carina Eastern areas, as defined by the RC and auger drill holes. Cross-section A–A' is illustrated in
Figure 2 below.
Carina Central
Carina Eastern
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Figure 2. Cross-section A–A' showing the principal geological domains from Figure 1 and the fault zone system
overlain by the regolith horizons. It is evident that the saprolite is thicker than the upper and lower pedolith and
has lateral continuity over the Carina Central area.
Sampling, Assay & QA/QC Protocols
363 drill holes were sampled at intervals of 0.5 m to 2 m, which resulted in a total of 3,789 samples for the analysis
of total rare earth element and desorbable rare earth element composition and 342 QA/QC samples for QA/QC
analysis. 3,211 samples were sent to ALS laboratory in Lima, Peru and 578 samples were sent to SGS Geosol
laboratory in Vespasiano, Brazil to be analysed for total rare earth element composition, and 3,211 samples were
sent to the AGS laboratory in La Serena, Chile and 578 samples were sent to SGS Geosol laboratory in
Vespasiano, Brazil to be analysed for desorabable rare earth element composition.
In respect of the total rare earth element composition analysis, GE21 Consultoria Mineral (“GE21”) utilizes
sampling and analytical protocols that follow industry standards in accordance with NI 43-101. The QA/QC
program has been implemented in the ALS and SGS Geosol laboratories, respectively. The quality of the assay
data for Dy, Nd, Pr and Tb was statistically evaluated by GE21 based on the QA/QC samples delivered by the
Company, which included an analysis of certified reference materials, field duplicates and sample split duplicates,
fine and coarse blanks via the execution of twin holes. GE21 is a Brazilian based engineering consultancy with
considerable experience in resource modelling and estimation. GE21 considers the assay results to be of sufficient
precision and accuracy to support the MRE.
Estimation Methodology & Reporting of Mineral Resources
High-grade capping supported by statistical analysis was completed on 1 m composites and applied to the MRE.
The MRE was completed using the LEAPFROG GEO EGDE software to generate a block model consisting of
parent blocks measuring 50 m x 50 m x 4 m with sub-blocks of 12.5 m x 12.5 m x 2 m dimensions.
Variography exercises were conducted with the LEAPFROG GEO EDGE software on three groups of elements,
which were defined based on the characteristics of the elements and the correlations between them, and included
the following groupings: (i) Ce; (ii) the light REEs La, Pr, Nd, Sm, and Eu; and (iii) the heavy REEs together with
Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu, and Y.
Experimental variograms were constructed in the vertical and horizontal directions. No continuity differences were
observed in different directions in the horizontal plane; therefore, the use of horizontal/omnidirectional
experimental variograms was chosen. The variograms were constructed within the high hydrothermal lower
pedolith, high hydrothermal upper saprolite and albitization upper saprolite geological domains.
The grade estimation considered orientation, type, and continuity of the mineralization and the drilling grid spacing
within each domain. The ordinary kriging method was used to estimate total REEs in each geological domain
A A´
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within the dynamic anisotropy tool of the LEAPFROG GEO EDGE software. Kriging in the presence of high-grade
approach was applied in the sample search to restrict the influence of outliers, which are composites with grades
higher than a defined value.
Block estimation was validated visually, by global bias analysis and by trend analysis.
In-situ bulk density was assumed to have a value of 1.8 t/m3 for the regolith profile, based on similar projects in
the region.
The inferred mineral resources classification reported in the MRE was based on the level of confidence in the
data, geological continuity and geostatistical parameters appropriate for the deposit type.
Qualified Person
All mineral reserve and mineral resource estimates and other scientific and technical information in this press
release were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and
Petroleum and NI 43 -101, has been reviewed and approved by Fábio Xavier (MAIG #5179) , a Geologist
associated with GE21. GE21 is a specialized, independent mineral consulting company. Sample preparation,
analytical techniques, laboratories used and quality assurance -quality control protocols used during the drilling
programs are consistent with industry standards and independent certified assay labs are used .
The MRE has been prepared by Fábio Xavier. Mr. Xavier is a member of the Australian Institute of Geoscientists
(AIG) and is a qualified person for purposes of NI 43-101. Mr. Xavier has reviewed and approved the scientific
and technical information related to the MRE contained in this press release.
Mr. Xavier visited the Carina Module from July 17 to July 18, 2024, during the execution of the Phase 2 RC drill
campaign. The visit was supported by Carina’s Exploration Manager, Luiz Jorge Frutuoso Junior. Mr. Frutuoso is
a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) , a Fellow of the Australian Institute of
Geoscientists (AIG) and is a qualified person for purposes of NI 43 -101. Relevant geological information and
database analysis relating to the Carina Module were provided by Juan Pablo Navarro, who is Aclara’s Corporate
Exploration Manager, a member of the Australian Institute of Geoscientists (AIG, #9021) and a qualified person
for purposes of NI 43-101.
A technical report for the Carina Module, to be prepared in accordance with NI 43 -101, will be filed under the
Company's profile on SEDAR+ at www.sedarplus.com within 45 days of this press release.
Acquisition of Mineral Rights Adjacent to the Carina Module
The Company has secured two additional mining rights adjacent to its existing mineral rights in the Carina Module
through a public bidding process conducted by the Agencia Nacional de Mineração. The new mining rights are
expected to enable the Company to explore new areas and optimize the design of its operating facilities.
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Figure 3: Map with the existing mining rights comprising the Carina Module and the newly acquired mining rights.
About Aclara
Aclara Resources Inc. (TSX: ARA) is a development -stage company that focuses on heavy rare earth mineral
resources hosted in Ion -Adsorption Clay deposits. The Company’s rare earth mineral resource development
projects include the Penco Module in the Bio -Bio Region of Chile and the Carina Module in the State of Goiás,
Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. Circular mineral
harvesting does not involve blasting, crushing, or milling, and therefore does not generate tailings and eliminates
the need for a tailing’s storage facility. The extraction process developed by Aclara minimizes water consumption
through high levels of water recirculation made possible by the inclusion of a water treatment facility within its
patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer main reagent,
ammonium sulfate. In addition to the development of the Penco Module and the Carina Module, the Company will
continue to identify and evaluate opportunities to increase future production of heavy rare e arths through
greenfield exploration programs and the development of additional projects within the Company's current
concessions in Brazil, Chile, and Peru.