Gold Mountain Locks in Rights Over WWII-Era Brazilian Tungsten Mine
Key Takeaways
- Gold Mountain (ASX: GMN) has paid R$1.0 million to secure a 12-month exclusive right to acquire the 857.53-hectare Malhada do Angico tungsten mine in Brazil's Seridó Province, directly adjacent to its existing Logradouro tenements.
- Three of five initial rock-chip samples returned tungsten grades exceeding the lab's upper detection limit of >10,000 ppm W (>1.26% WO₃), with a fourth returning 1,020 ppm W — though grab samples are not representative of average deposit grades.
- ANM-mapped targets identify more than 6 kilometres of potential tungsten-bearing strike within GMN's tenements, with a 2,000-metre diamond drilling program planned once permits are approved.
- The acquisition structure limits upfront capital risk: the remaining two R$1.0 million payments are each triggered only by favourable ANM regulatory decisions, not fixed timelines.
- The Brejuí Mine — one of Brazil's largest tungsten operations — sits 47 km north in the same skarn-hosted geological belt, providing a significant regional production benchmark for the Malhada do Angico system.
Exclusive right secured over WWII-era tungsten mine in Brazil’s Seridó Province
Gold Mountain Limited (ASX: GMN) has secured an exclusive 12-month right to acquire Mining Application 848.365/2011, covering approximately 857.53 hectares over the Malhada do Angico tungsten mine in northeast Brazil’s Seridó Tungsten Province. The mine sits adjacent to GMN’s existing Logradouro tenements, creating a contiguous land position within one of South America’s principal tungsten-producing regions.
The acquisition right was granted by EMPG (Emprogeo Mining Business EPP Ltda) through a Heads of Agreement with GMN’s Brazilian subsidiary, MARS GMN Brazil Ltda. GMN has paid the initial R$1.0 million exclusivity payment, with the remaining consideration structured across two further milestone-linked tranches.
| Payment | Amount | Trigger |
|---|---|---|
| Exclusivity payment (paid) | R$1.0 million | On signing — exclusive right for 12 months |
| Second payment | R$1.0 million | Within 15 days of favourable ANM decision on Positive Final Exploration Report |
| Third payment | R$1.0 million | Within 15 days of ANM approval of assignment of mining rights to GMN |
This is an early-stage acquisition play. GMN’s potential purchase remains subject to satisfactory technical, legal, and regulatory due diligence within the 12-month window.
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What the Seridó Tungsten Province means for investors
Tungsten is a critical mineral used in hardened metal alloys, defence applications, and electronics — sectors where supply security is a growing concern. Where you find it matters as much as how much is there, and the Seridó Belt in northeast Brazil has a well-established production history.
The mineralisation style at Malhada do Angico is skarn-hosted. A skarn is a mineralised zone that forms where granite intrudes carbonate rock — think of it as a contact zone where heat and chemistry conspire to concentrate metals like tungsten. This geological setting is the regional host to numerous scheelite (tungsten-bearing mineral) deposits across the Seridó Belt.
The most significant nearby benchmark is the Brejuí Mine, described as one of Brazil’s largest tungsten mines, located approximately 47 km north of GMN’s Logradouro tenements. Malhada do Angico sits within the same broad structural and stratigraphic environment. The mine’s World War II-era production history adds a further layer of validation: ore was extracted and processed on-site during that period, confirming prior economic interest in the system.
Rock-chip results and exploration program underway
The headline sampling results from GMN’s initial program are notable. Three of five rock-chip grab samples returned tungsten (W) analyses exceeding the upper analytical limit of 10,000 ppm W, equivalent to >1.26% WO₃: samples LGRK0001, LGRK0002, and LGRK0003, all classified as skarn. A fourth sample, LGRK0004, returned 1,020 ppm W (0.129% WO₃), which GMN flagged as highly significant as a grab sample.
It is important to note that these are grab samples and are not representative of average grades — they indicate the presence and style of mineralisation only.
| Sample ID | Description | W (ppm) | WO₃ (%) |
|---|---|---|---|
| LGRK0001 | Skarn | >10,000 | >1.26 |
| LGRK0002 | Skarn | >10,000 | >1.26 |
| LGRK0003 | Skarn | >10,000 | >1.26 |
| LGRK0004 | Skarn | 1,020 | 0.129 |
| LGRK0005 | Quartz with azurite | 103 | 0.013 |
The exploration program currently underway and planned includes:
- Auger drilling of historical tailings to assess grade, thickness, and obtain metallurgical samples (in progress)
- Rock-chip and stream-sediment sampling (results pending for some samples)
- Soil-sampling program across GMN tenements (results pending)
- Diamond drilling program designed to test approximately 2,000 metres of strike to depths of up to approximately 120 metres below surface — permitting in progress
- High-resolution drone LiDAR and magnetics survey planned across Logradouro tenements
Approximately 2,000 metres of skarn has been identified within the main mine workings zone, with a further approximately 2,000 metres identified in the eastern part of the Malhada do Angico mine tenement. Additional targets mapped by ANM represent more than 6 kilometres of potential tungsten-bearing strike within GMN tenements.
David Evans, Executive Director, Gold Mountain
“GMN is excited by this tungsten opportunity, which I recently visited. We are fast tracking the exploration program and will commence drilling as soon as the necessary permits are obtained…”
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What’s next for GMN at Logradouro
The near-term catalyst pipeline is well-defined, and investors have several concrete milestones to watch:
- ANM decision on the Positive Final Exploration Report (filed 26 October 2016) — a favourable outcome triggers the second R$1.0 million payment
- Diamond drilling permit approval — drilling is expected to commence upon receipt of required approvals
- Auger drilling results from historical tailings, currently in progress
- Soil-sampling and stream-sediment results, to be used to determine additional drill targets
- LiDAR and magnetics survey, planned to refine geological and structural interpretation
The due diligence process covers ownership, regulatory status, technical documentation, encumbrances, environmental liabilities, third-party rights, and historical exploration information — standard for a staged acquisition of this type.
As broader context, GMN holds 100% interest in all its tenements and operates a diversified Brazilian exploration portfolio spanning REE, lithium, copper, and tungsten. The Malhada do Angico acquisition right represents a focused expansion of its existing Seridó tungsten strategy, adding a historically productive mine area directly adjacent to its current Logradouro tenement position.
Alongside the tungsten program, rare earth drilling at Irajuba has been advancing separately, with five diamond drill holes returning headline intercepts up to 4,599 ppm TREO and composite samples now progressing to metallurgical leach testing.
GMN’s Brazilian exploration portfolio extends well beyond tungsten, with the company having raised $5.5 million to accelerate rare earth and lithium programs running in parallel to the Seridó work.
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