Aclara Announces the Discovery of a New Heavy Rare Earths Deposit Hosted IN Ion-Adsorption Clays IN Brazil
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ACLARA ANNOUNCES THE DISCOVERY OF A NEW HEAVY RARE EARTHS DEPOSIT HOSTED IN
ION-ADSORPTION CLAYS IN BRAZIL
TORONTO, ON, October 11, 2023 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased
to provide an update on its exploration activities in Brazil by announcing its new Heavy Rare Earth Element
("HREE”) ionic clays project, “Carina Module” (the “Project”) located in the State of Goias, Brazil. The results
of its initial auger drilling campaign1, which was comprised of 1,693 meters of drilling within 236 drill holes,
demonstrate the discovery of a new HREE deposit hosted in ionic clays. While the initial auger drilling
campaign was shallow, with an average depth of 7.2 meters, it has unveiled a potential for expansion, both
laterally and at depth, accompanied by the prospect of enhancing HREE grades.
Highlights
● Size Potential: The mineralized area of the Carina Module spans approximately 1,400 hectares, with
potential for lateral expansion. In contrast, the mineralized area of the Company’s Penco Module in Chile
covers approximately 140 hectares.
● Prospective Grades: The drilling results shows the potential for high Total Rare Earth Oxides2 (“TREO“)
with average grades at 1,229 ppm. From an average drilling depth of 7.2 meters, 71.2% of the drillholes
include 5.7 meters with TREO average grades at 1,367 ppm and Desorbable Rare Earth Oxides3 (“DREO“)
at 449 ppm. A selection of high-grade drillhole results are shown in Table 1 below, with the full set of
results included in Table 3 at the end of the document.
● Rich in HREE and LREE: The desorbable results demonstrate an outstanding distribution of HREE and
Light Rare Earth Elements (“LREE“). In particular, 71.2% of drillholes reveal desorbable dysprosium
(“Dy2O3 D“) and terbium (“Tb4O7 D“) grades at 18.1 ppm (≈4.1% of the rare earths basket distribution)
and 3.1 ppm (≈0.7% within the rare earths basket distribution), respectively. In addition, desorbable
neodymium oxide (“Nd2O3 D“) and praseodymium oxide (“Pr2O3 D“) grades show a summed value of 123
ppm (≈27.5% of the rare earths basket distribution).
● Metallurgical Compatibility: The metallurgy of the Penco Module, which utilizes an ammonium sulfate
leaching solution, is well-suited for the Carina Module's ionic clays. 71.2% of drillholes show an average
exchangeable fraction4 for TREO of 36.6%, with the highest value recorded at 78%; total dysprosium
oxide (“Dy2O3 T“) exhibits an average exchangeable fraction of 46%, with the highest value at 78%, and
Terbium oxide (“Tb4O7 D“) exhibits an average exchangeable fraction of 52%, with a peak at 91%.
● Depth Potential: The average drill depth of the auger drilling campaign was 7.2 meters, which did not
1 Auger Drilling Campaign; Results consider Total Rare Earths Oxides (“TREO”) of 100% of the auger drillholes of the drilling campaign
and 81.8% of desorbable results, with the remaining18.2% pending the final assay results.
2 TREO: Considers all rare earths elements represented in oxide form (Lanthanum - La2O3, Cerium - Ce2O3, Praseodymium - Pr6O11,
Neodymium - Nd2O3, Samarium - Sm2O3, Europium - Eu2O3, Gadolinium - Gd2O3, Terbium - Tb4O7, Dysprosium - Dy2O3, Holmium - Ho2O3,
Erbium - Er2O3, Thulium - Tm2O3, Ytterbium - Yb2O3, Lutetium - Lu2O3).
3 DREO: Desorbable Rare Earth Oxide is the recoverable fraction of the total contained rare earths ( TREO) using the Penco Module´s
ammonium sulfate based metallurgical process.
4 Exchangeable fraction: The exchangeable fraction refers to the percentage (%) of recoverable grade from TREO using the Penco
Module´s ammonium sulfate based metallurgical process.
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allow us to consistently reach the bottom limits of the lower Pedolith and Saprolite. However, over 70%
of drillholes indicate a high anomalous exchangeable fraction in the last interval, suggesting that the
deposit remains open at depth.
Table 1. Summary of Carina Module´s top 10 drillhole results (see location in Figure 2 below)
Ramon Barua, CEO, commented:
well-established track record and
expertise in evaluating projects of this nature.
Initial Auger Drilling Campaign Summary
A total of 1,731 meters of drilling within 238 auger drill holes was carried out from February to August 2023
as part of a scouting drilling campaign covering approximately 1,400 hectares within the area defined as the
Carina Module (see Figures 2 and 3). The primary objectives of the drilling initiative were to:
1. contribute to the definition of a maiden resource estimate of a size necessary to support a new
production module;
2. provide guidance for future reverse circulation drilling campaigns, needed to fully assess the asset s
potential both laterally and at depth; and
Drillhole
depth TREO DREO NdPr T Dy T Tb T
m ppm ppm ppm ppm % of DREO ppm ppm % of DREO ppm ppm % of DREO
ADPBR23188 5 3,792 2,979 900 761 26% 105 78 2.6% 18 14 0.5%
ADPBR23090 6 1,807 1,285 284 202 16% 85 84 6.6% 15 14 1.1%
ADPBR23103 10 2,075 1,114 417 231 21% 89 64 5.8% 16 12 1.1%
ADPBR23029 7 2,244 1,082 588 367 34% 56 33 3.1% 10 7 0.6%
ADPBR23010 6 1,774 968 396 236 24% 76 47 4.8% 12 8 0.9%
ADPBR23110-A 10 9,999 931 1,802 268 29% 92 32 3.4% 18 6 0.6%
ADPBR23192 5 2,000 941 389 209 22% 60 35 3.7% 10 6 0.6%
ADPBR23104 6 2,289 860 430 175 20% 118 58 6.7% 20 10 1.2%
ADPBR23094 10 2,919 839 693 277 33% 86 36 4.3% 15 7 0.8%
ADPBR23193 8 1,813 827 312 278 34% 27 21 2.6% 5 4 0.5%
Drilhole
NdPr D Dy D Tb D
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3. establish the metallurgical compatibility of the ionic clays found in the Carina Module with the
metallurgical process developed for the Penco Module.
The drilling campaign used manually operated augers ideally suited for a scouting campaign requiring
shallow drill depths and easy and quick access to drill sites and varying terrains. The images in Figure 1
below show an example of the auger drilling methodology performed at the Project.
Figure 1. Auger drilling campaign at Carina Module project
General Project Description
The Carina Module is located in the north-eastern part of the State of Goiás, in central Brazil. The site can be
accessed via paved roads from Goiânia (the capital of the Goiás state) or Brasília (the national capital of
Brazil). Both Goiânia and Brasília are major cities with modern infrastructure and services and offering
commercial airports for domestic and international flights. From a district perspective, access to the site is
via a 50km gravel road and the supply of electricity, water, and sanitation is provided by the Brazilian
government utilities. At the site, domestic water is obtained from wells, and electrical supply can be obtained
from an electrical substation located 90km from the Project.
The State of Goiás is also the home of the ion-adsorption clay project managed by Mineração Serra Verde,
which has successfully obtained the required environmental and operating permits needed to construct and
operate their mine and processing facility and which recently commenced commercial production. This
demonstrates that the Goiás State has a positive track record in evaluating projects of this nature and could
play an important role in the potential development of the Carina Module.
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Figure 2 shows the Project area, covering approximately 1,400 hectares, which is characterized by a
complete regolith profile (Pedolith and Saprolite horizons), as tested by the auger drilling campaign. The
assay results showing the total Rare Earth Elements (“REE”), NdPr, Dy and Tb content and the exchangeable
REE, NdPr, Dy and Tb fraction are displayed in Table 3. The table also displays the recoveries, corresponding
drill hole depths, average composite grades (ppm), and shows the last interval of some boreholes, indicating
that high REE grades remain open at depth. Figures 3 and 4 show examples of 4 drillholes with high
desorbable dysprosium grades increasing at depth, the full extension of which will be tested in a future
drilling campaign.
Figure 2. Carina Module map with executed auger drillholes, historic bore holes and the zone contour of the geological potential. Auger
boreholes are displayed by blue dots. Some of the best drillholes, referenced in Table 1, show their regolith profile and the dysprosium
exchangeable fraction curve (Dy D (ppm)) illustrated in Figure 3. The black diamond dots represent historical diamond drillholes
completed by the previous owner within the Project area.
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Figure 3. The Upper Pedolith, Lower Pedolith and Upper Saprolith regions and the locations of the cross sections A-A ´and B-B´ are shown
in the map.
The distribution of the exchangeable REE fractions obtained from the auger drilling campaign are also
plotted in the A-A´ and B-B´ cross-sections, indicating that the deposit is open to depth and laterally (some
drill holes are pending analytical results). The drillholes shown in the A-A´ and B-B´ cross-sections have not
intercepted the whole regolith profile. The exchangeable REE fractions show good values open to depth. A
reverse circulation drilling campaign will be executed here to understand the full potential of the deposit at
depth.
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Figure 4. Drillholes ADPBR23011, ADPBR23094, ADPBR23103, and ADPBR23106, show Dy2O3 D (ppm; dysprosium exchangeable fraction
curve) values open to depth. These drill holes have only intercepted part of the Lower Pedolith (yellow portion of the vertical bar
represents the interval of the Upper Pedolith and the red portion of the vertical bar represents the interval of the Lower Pedolith).
Next Steps
The results from the initial auger campaign have provided the Company with a basis to further pursue the
Project, which is expected to include the following activities:
● the issuance of a maiden mineral resource estimate during Q4 2023;
● the issuance of a NI 43-101 Preliminary Economic Assessment during Q1 2024;
● the execution of a 1,500-meters reverse circulation drill campaign to confirm the mineralized potential
at depth. The campaign is expected to start at the end of October 2023 and is the initial phase of a
reverse circulation campaign of 7,590 meters within 253 drillholes to convert the full potential of the
deposit to an inferred mineral resource category; and
● the execution of a pilot test campaign during Q1 2024 in our fully owned pilot plant in Chile, utilizing a
25-ton sample of clay extracted from the Project area. This campaign will aim to demonstrate on a semi-
industrial scale the feasibility of processing the ionic clays extracted from the Carina Module.
Additionally, it will serve the purpose of producing commercial samples and further enhancing the value
chain development efforts that were initiated with the Penco Module samples.
Geological Overview
The dominant lithologies of the Project are pink porphyritic monzogranite composed of quartz, oligoclase,
microcline, and annite as essential minerals. Leucosienogranite is the secondary lithology, characterized by
quartz, albite, and microcline. Using the historical and present auger drilling results, a thick regolith
development has been interpreted ranging from 45 to 60 meters in thickness. This hypothesis will be tested
with the execution of the upcoming reverse circulation drill campaign.
All the lithologies recognized in the Project have shown evidence of thick regolith profiles, secondary
minerals such as the ionic clays, and the release of interesting REE fractions such Nd, Pr, Dy, and Tb. As part
of the initial auger drilling campaign, the bottom limits of the lower Pedolith and Saprolite were not reached;
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however, the last intervals of the drill holes show exchangeable REE fractions open to depth.
Sampling and Assay Protocols
The 238 auger drill holes were sampled at intervals of 0.5 meters to 2 meters, for a total of 1,344 samples,
which were sent for total REE analysis (REY T) to the ALS laboratory in Lima, Peru, and desorption (REY D)
analysis to AGS laboratory in La Serena, Chile. The same sampling and analytical protocols were followed
as indicated in the Company’s Amended and Restated NI 43-101 Technical Report, Preliminary Economic
Assessment for Penco Module Project, prepared by Ausenco Engineering Chile Limitada with an effective
date of September 15, 2021. The QA/QC program indicates high levels of accuracy for Dy, Tb, Nd, Pr and Lu.
Overall, the database for total grades similarly shows high accuracy. The Company contracted the services
of GeoAnsata to review the data quality and QA/QC protocols.
Comparison: Carina Module vs. Penco Module
In an effort to facilitate the understanding of Carina Module results, Table 2 below has been prepared to
compare the results obtained from the Carina Module drilling with those used for the Penco Module. The
Penco Module information has been referenced from the Mineral Resource Update released on December
1, 2022.
Table 2. Comparison of Carina Module vs. Penco Module on selected parameters
Size: The mineralized footprint of the Carina Module covers approximately 1,400 hectares, which is an area
10 times larger than the Penco Module mineralized area.
Grades: TREO grades are lower than at the Penco Module, however, the focus needs to be set in the
desorbable grades (DREO), which represent the recoverable fraction from TREO. Applying the same
metallurgical process as employed by the Penco Module (ammonium sulphate leaching), the Carina
Module's DREO grades are slightly lower than those found in the Penco Module mineralised area. It is
important to note, however, that the Carina Module mineralization has only been tested to a depth of
approximately 5.7 meters whereas the Penco Module has an average depth of approximately 24 meters.
This has prompted the decision to initiate a deeper drilling campaign to determine the full potential of the
Carina Module mineralisation with regards to both size and grades. As demonstrated in Figures 3 and 4, the
mineralised area remains open at depth.
Metallurgy: The metallurgical process used to determine the DREO grades at the Carina Module is the same
as that used on the Penco Module, which has previously been successfully validated through a semi-
industrial scale pilot plant operation. This metallurgical methodology represents a proven concept with
Carina Module Penco Module
71.2% Drill Holes M&I Resources
Mineralized Area Hectares 1,400 ≈140 1000%
Mineralized Depth Meters ≈5.7 (open at depth) ≈24 (open at depth) -76%
TREO Grade ppm 1,363 2,292 -41%
DREO Grade ppm 449 496 -10%
Exchangeable Fraction % 33% 22% 52%
NdPr D Grade ppm 123 74 66%
DyTb D Grade ppm 21 31 -30%
Parameter Unit Var
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positive environmental attributes and cost-effectiveness. The Company remains optimistic that further
enhancements can be made to the metallurgical process which will improve recoveries and, to this end,
plans to conduct a research and development programme to optimize the metallurgical formula for the
Carina Module clays.
REE content: The Carina Module shows attractive REE contents, with a NdPr to DyTb ratio of approximately
5.8. This positions the asset as a potential net contributor of heavy rare earths essential for manufacturing
high-performance permanent magnets, especially those needed for electric vehicles (“EVs”). For further
insights, please refer to the Rare Earth Market section below.
Barry Murphy, COO, commented:
Concessions and Land Ownership
On February 27, 2023, the Company entered into an earn-in agreement with a Brazilian mining company that
provides the Company the right to acquire up to 100% of the 8,490 hectares of mining concessions over the
target area of the Project.
Qualified Person
The technical information in this news release, including the information related to geology, drilling, and
mineralization, has been reviewed and approved by Luiz Jorge Frutuoso Junior, current Aclara Exploration
Manager, with more than 20 years of relevant experience. Mr. Frutuoso is a Fellow of the Australasian
Institute of Mining and Metallurgy (AusIMM) and Fellow of Australian Institute of Geoscientists (AIG) and is
a Qualified Person (QP) as defined by National Instrument 43-101 -Standards of Disclosure for Mineral
Projects.
Mr. Frutuoso confirms that he visited the project area on May 24, 2023 and was supported by the Chief of
Geology at Aclara, Juan Pablo Navarro, who reviewed and analyzed the relevant project information. Carlos
Santos, Database and QA/QC Geologist of the Company provided an analysis of the QA/QC work over the
Carina Module.
Rare Earths Market
The global transition to clean energy has helped to drive an expanding market for REE due to their valuable
properties. Dysprosium and terbium, which are HREE, and neodymium and praseodymium, which are LREE,
have magnetic attributes and are critical components in the production of high-performance permanent
magnets. Neodymium-based permanent magnets (“Nd magnets”) offer superior performance as they are
lighter and stronger compared to other type of magnets and have the ability to be engineered into any shape
or size. The predominant uses of Nd magnets are in the EV industry and in wind turbines. In EVs, permanent
magnets result in increased range autonomy, better use of space, lower weight and lower battery costs, the
latter as a result of reduced lithium, cobalt and nickel content. Neodymium permanent magnet motors offer
the best performance and optimization potential in electric motors, with approximately 90% of EV models
using them as part of their drivetrain.