Magnum Mining Expands Piracanjuba Rare Earth Discovery With 14 New Permits

Magnum Mining Expands Its Footprint at a Confirmed Rare Earth Discovery — and the Drill Results Are Coming

Magnum Mining and Exploration Limited (ASX: MGU | OTCQB: MGUFF) has secured 14 new exploration permits around its Piracanjuba Ionic Adsorption Clay (IAC) rare earth element (REE) discovery in Goiás, Brazil. The Magnum Mining rare earth discovery at Piracanjuba Brazil now covers a total landholding of 429.49km², following the grant published by Brazil's National Mining Agency (ANM) in the official gazette Diário Oficial da União (D.O.U.). This provides Magnum with a substantially larger platform to test the lateral extent of a mineralised system that has already delivered standout early results.

Crucially, this tenure expansion arrives as an 810-hole, 10,000-metre auger drilling campaign is actively underway at the Piracanjuba North target. Magnum has indicated it will begin releasing assay and desorption results from this programme shortly — signalling a period of potentially significant news flow for shareholders.

Managing Director Antonio Vitor Junior stated: "The significance of Piracanjuba North is its potential to host a world-class-scale REE system, supported by the underlying 85km² geophysical anomaly and the fact that all initial auger holes intersected and terminated in REE mineralisation. With an 810-hole drilling programme in full swing, Magnum is entering a period of high news flow."

Why This Announcement Matters: Securing the Ground Around a Live Discovery

Expanding tenure around an active discovery is a classic and strategically sound move in junior mineral exploration. The rationale is straightforward: if the geology is good inside the boundary, you want to control the ground adjacent to it before the market fully prices in that possibility.

At Piracanjuba, the case for expansion is reinforced by several characteristics already confirmed from first-pass exploration:

• All 13 initial auger holes intersected near-surface REE mineralisation and terminated within mineralisation — a notable result indicating REE presence is pervasive across the tested area, not isolated to single intercepts
• Assay grades of up to 3,971ppm TREO (Total Rare Earth Oxide) and 1,360ppm MREO (Magnet Rare Earth Oxide) recorded from first-pass holes
• Desorption recoveries of up to 75% TREO and 94% MREO, achieved under mild leaching conditions — a metallurgically significant result
• A geophysical anomaly spanning 85km² at Piracanjuba North, validated by first-pass drill holes spaced up to 5km apart
• Project location approximately 50km from CMOC's Catalão Project, one of Brazil's highest-grade niobium operations, within the same regional structural corridor

The new permits are designed specifically to test whether these trends — regolith profiles, geophysical signals, and structural trends — extend beyond the currently explored corridor.

Understanding IAC REE Deposits: Why the Metallurgy Is a Game-Changer

What Is an Ionic Adsorption Clay (IAC) REE Deposit?

Ionic Adsorption Clay deposits form when rare earth elements, released through the weathering of igneous rocks, are adsorbed (essentially attached) onto clay minerals in the regolith — the layer of broken-down rock and soil above fresh bedrock. Rather than being locked inside hard rock minerals, the REEs sit loosely on clay particles, held by a weak ionic charge.

Why Does This Matter to Investors?

The processing implications are significant. Because the REEs are loosely bound, they can be extracted using simple, low-energy chemical leaching — typically with dilute ammonium sulfate or similar mild reagents — rather than the energy-intensive grinding and smelting required for hard-rock REE deposits. This translates into:

1. Lower potential processing costs compared to hard-rock REE projects
2. Simpler processing flowsheets, which can reduce capital expenditure requirements
3. Near-surface mineralisation, which lowers the cost and complexity of extraction

The desorption results Magnum has reported — up to 94% MREO recovery under mild leaching — are an early indicator that the Piracanjuba mineralisation behaves in the way IAC deposits are expected to. These are initial results and further work is required; however, the metallurgical behaviour confirmed so far is consistent with the characteristics that make IAC deposits economically attractive.

Glossary of Key Terms

The New Permits: What Has Been Granted

The ANM has published the grant of 14 new Research Permits (Alvarás de Pesquisa), each issued for a three-year term from the date of publication. All permits are held by Palmares Estudos Geologicos Ltda, a wholly-owned subsidiary of Magnum.

The expanded tenure covers ground adjacent to both the Piracanjuba North and Piracanjuba South target corridors. Furthermore, this gives Magnum the ability to systematically test geological continuity and prospectivity beyond the currently active drilling area.

What Comes Next: A Busy Period for Shareholders

Magnum has outlined a clear near-term work programme across both the existing discovery ground and the newly acquired permits.

At Piracanjuba North (Active Drilling Area):

• Results reporting from the 810-hole, 10,000m auger drilling campaign to commence shortly, with regular batches of assay and desorption results expected
• Ongoing geological interpretation as results are received

For the Newly Granted Permits:

1. Integration of new permit areas into the Company's GIS, tenement, and geological databases
2. Review of airborne geophysics, radiometrics, and regional geological datasets over new ground
3. Field reconnaissance, access planning, and landholder engagement where required
4. Prioritisation of targets for potential auger drilling, mapping, and/or additional geophysical work

The near-term results pipeline from the 810-hole programme is the most immediate catalyst for shareholders to monitor. With holes completed across an 85km² geophysical anomaly and all initial holes having intersected mineralisation, the systematic release of assay data will be critical in defining the scale and continuity of the Piracanjuba system.

The Investment Thesis: Scale Potential, Early-Stage Validation, and a Live Drilling Programme

Magnum's investment case at this stage rests on three interconnected pillars.

1. A Confirmed Discovery With Exceptional Early Metrics

The initial 13-hole programme at Piracanjuba was not a reconnaissance effort that returned mixed results. Every hole intersected REE mineralisation, and the best results — 3,971ppm TREO, 1,360ppm MREO, and up to 94% MREO desorption recovery — place Piracanjuba in the company of genuinely interesting IAC REE discoveries. These are first-pass figures, and resource definition is a long way off, but the early data points are, nonetheless, encouraging.

2. A Scale Story Supported by Geophysics

The 85km² geophysical anomaly at Piracanjuba North is large. Validation with drill holes spaced up to 5km apart indicates the anomaly is not a localised feature — it has considerable lateral extent. In addition, the expanded tenure, now totalling 429.49km² across the broader Piracanjuba landholding, positions Magnum to test whether this scale translates into mineralised continuity.

3. High Near-Term News Flow From an Active Campaign

An 810-hole drilling programme is underway right now. Results reporting is expected to begin shortly. For investors seeking catalysts, this is a concrete, near-term timeline tied to a programme already in progress — not a future commitment subject to permitting or funding.

Why Investors Should Keep Watching Magnum

The Magnum Mining rare earth discovery at Piracanjuba Brazil is at an early but pivotal stage. The geological confirmation work has been done — IAC-hosted REE mineralisation has been confirmed, the mineralised system has been shown to be laterally extensive across an 85km² footprint, and the metallurgical behaviour under leaching is promising. The 810-hole campaign now underway is designed to begin converting that geological potential into a clearer picture of scale and grade continuity.

The tenure expansion to 429.49km² is a logical and timely move: securing additional ground around a live discovery while the cost of doing so is low and before the full scale of the system is understood. This is the kind of disciplined, proactive land management that separates well-run junior explorers from those that find themselves locked out of their own discovery corridor.

The next several months will bring a steady stream of assay and desorption data from the 810-hole programme. That data will either support or challenge the scale thesis — and in either case, it will be material information for shareholders and prospective investors.

Key Takeaway: Magnum Mining has confirmed a genuine IAC REE discovery at Piracanjuba, secured expanded tenure across a now 429.49km² landholding, and has an 810-hole drilling campaign actively underway. With assay and desorption results expected to flow shortly, investors should watch closely as the Company begins to define the true scale of what it has found.

Want to Learn More About Magnum Mining's Piracanjuba REE Discovery?

With a confirmed ionic adsorption clay rare earth discovery, an expanded 429.49km² landholding, and an 810-hole drilling campaign actively underway at Piracanjuba North, Magnum Mining (ASX: MGU | OTCQB: MGUFF) is entering a period of significant news flow. Assay and desorption results are expected to begin flowing shortly — making now a compelling time to get across the full investment case. Visit www.mmel.com.au to explore the Company's projects, announcements, and latest updates directly from the source.