Verity Resources Uncovers Significant Mineral Discovery at Pimenta Project

High-Grade REE and Critical Minerals Emerge from Brazilian Exploration

Verity Resources Limited (ASX:VRL) has announced significant rare earth element (REE) and critical mineral discoveries from surface sampling at its Pimenta Project in Minas Gerais, Brazil. The reconnaissance program has returned exceptional results with up to 2.58% TREO (Total Rare Earth Oxides) and substantial gallium values of up to 89g/t Ga₂O₃, highlighting the multi-commodity potential of the project.

The surface sampling program, which collected 137 samples across a 20km radiometric anomaly zone, revealed widespread REE mineralisation enriched in high-value magnetic rare earth elements (MREO) that comprise approximately 25% of the total REE content. This MREO component, which includes neodymium, praseodymium, dysprosium, and terbium, is particularly valuable for permanent magnet manufacturing critical to electric vehicles and renewable energy technologies.

Key Exploration Highlights

• Surface samples returned up to 25,817ppm TREO (2.58% TREO) with 25% high-value magnet rare earths
• Significant gallium values of up to 89g/t Ga₂O₃ discovered, a critical metal currently facing global supply constraints
• Titanium oxide values of up to 9.26% TiO₂ provide additional economic potential
• Samples revealed zirconium values of up to 8,619ppm ZrO₂, enhancing the polymetallic nature of the project
• Additional anomalous elements include lithium (up to 110ppm) and niobium (up to 421ppm Nb₂O₅)

Geological Setting and Mineralisation Style

The mineralisation at Pimenta appears to be primarily hosted in allanite, a REE-bearing sorosilicate mineral, within a medium-to-coarse grained granite basement. This geological signature shows strong similarities to American Rare Earths' Halleck Creek Project, which hosts a substantial resource of 2.63 billion tonnes at 3,292ppm TREO.

The presence of allanite is particularly significant as this mineral is resistant to weathering, which has led to enrichment in the overlying soils and saprolites. Sample results confirm this enrichment pattern:

The consistent geochemical signature between fresh rock and weathered material suggests a model of vertical enrichment through residual weathering, which could be favourable for potential resource development.

Understanding Allanite-Hosted REE Deposits

Allanite-hosted REE deposits represent an emerging class of rare earth resources that differ from the more commonly known ionic clay or carbonatite-hosted deposits. Allanite is a sorosilicate mineral of the epidote group that naturally contains significant concentrations of rare earth elements.

These deposits are particularly noteworthy because:

1. They often show less radioactivity than other REE deposit types
2. The weathering process can concentrate REEs in the saprolite zone
3. The mineralisation tends to have consistent MREO ratios throughout
4. They typically occur in granite complexes that can cover extensive areas

The Halleck Creek deposit in Wyoming, USA, which Pimenta bears geological similarities to, has emerged as one of the largest potential REE resources in the United States, with favourable metallurgical characteristics.

Strategic Importance of Gallium Discovery

The discovery of significant gallium values at Pimenta is particularly timely given recent global supply constraints. China's rare earth export controls introduced in mid-2023, which account for approximately 98% of the world's gallium production, have led to supply shortages and price increases.

Gallium is a crucial material for:

• Semiconductor manufacturing
• 5G technology infrastructure
• LED production
• Solar panel efficiency
• Defence applications

With current prices at approximately US$243,000 per metric ton, the gallium component alone represents a valuable aspect of the Verity Resources Pimenta Project discovery.

Project Location and Infrastructure Advantages

The Pimenta Project benefits from its location in the well-established mining region of northern Minas Gerais, Brazil. This strategic position provides:

• Access to existing road infrastructure
• Proximity to power supplies
• Availability of an experienced local mining workforce
• Established regulatory framework for mining development

This favourable infrastructure setting could significantly reduce future development costs compared to more remote REE discoveries globally.

Future Exploration Plans

Verity Resources intends to expand exploration at the Pimenta Project, focusing on the two high-grade multi-element target areas identified from the initial sampling program. Future work is expected to include:

• Grid-based soil sampling programs across the radiometric anomalies
• Potential auger drilling to test the vertical extent of REE enrichment
• Further geological mapping to define the extent of allanite-rich granites
• Metallurgical testing to assess recovery potential

The company has successfully negotiated a 12-month extension to its joint venture expenditure commitment term in Brazil, providing additional flexibility to develop its exploration strategy across the region.

Why Investors Should Follow Verity Resources

Verity Resources has positioned itself at the intersection of several critical mineral trends with its diversified portfolio:

1. The Verity Resources Pimenta Project discovery provides exposure to both rare earth elements and gallium, two mineral groups facing supply constraints and growing demand from technology and clean energy sectors

2. The company maintains a balanced portfolio that includes:

   • 100% ownership of the Monument Gold Project in Western Australia (154,000 oz Au)
   • 70% interest in the Pimenta REE Project in Brazil
   • Interests in base and precious metals projects in Botswana's Limpopo Mobile Belt

3. The geological similarities between the Verity Resources Pimenta Project discovery and the multi-billion-tonne Halleck Creek deposit suggest significant scale potential if further exploration confirms the extent of mineralisation

4. The discovery of multiple critical minerals (REEs, gallium, titanium, zirconium) enhances the economic potential of the project through potential multi-commodity production

With critical minerals security becoming an increasing focus for Western economies and alumina index price corrections affecting market dynamics, Verity's early-stage discovery at Pimenta represents a timely opportunity in the critical minerals space with multiple potential value drivers as exploration progresses.

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