Oceana Metals Launches 20,000m Serra Negra Rare Earths Drilling Program in Brazil

Oceana Metals Mobilises for 20,000m Drill Program at Serra Negra — One of Brazil's Largest Carbonatite Complexes

Oceana Metals Limited (ASX: OCN) is shifting gears from acquisition to active exploration at its Serra Negra Rare Earths Project in Brazil, with tenders sought for an initial ~20,000m drilling program as part of the Oceana Metals Serra Negra rare earths drilling program in Brazil. A concurrent ~8,000m historic core re-assay campaign is already underway, and district-scale geophysical surveys are being planned — all backed by a pro forma cash position of approximately A$17.6 million.

The announcement marks the company's first major operational update since revealing its proposed acquisition of 100% of the Serra Negra project on 28 April 2026, and signals the start of what management has described as a "drilling-led growth phase."

Serra Negra: A Giant on the Map That Has Never Been Properly Tested for Rare Earths

Serra Negra is not a small target. The project is a 10km-wide carbonatite complex — the largest-known alkaline carbonatite intrusion in Brazil's Alto Paranaíba Igneous Province (APIP) in Minas Gerais State.

To put that size into perspective, the company has noted that Serra Negra's physical footprint is at least three times larger than the nearby Araxá complex, which hosts world-class rare earth element (REE) mineralisation and the world's largest niobium deposit.

Despite this scale, Serra Negra has never been systematically explored for rare earths or niobium. The project's 102 historical drill holes totalling ~13,800m were drilled for phosphate and titanium — and, critically, the core was never assayed for REEs. That oversight is now being corrected.

"We already have strong evidence to suggest that Serra Negra has the potential to host a significant rare earths deposit. We know from our initial work some of the historical core contains high grades of rare earths and that there is rare earths mineralisation over substantial widths."

— Mick Wilson, Managing Director, Oceana Metals

Prior to signing the acquisition agreement, Oceana completed downhole portable XRF (pXRF) screening of a portion of available historical drill core, which indicated the presence of thick intervals of REE readings. Laboratory check assays from grab samples collected from these intervals returned significant results, as reported on 28 April 2026.

Four Simultaneous Workstreams: A Coordinated Exploration Push

What distinguishes this announcement is not just the scale of the planned drilling program, but the coordination of four parallel workstreams being executed simultaneously. Rather than a linear approach, the Oceana Metals Serra Negra rare earths drilling program in Brazil is running exploration activities in parallel to compress the timeline to an initial resource estimate.

This parallel approach is designed to accelerate the path to a maiden resource whilst simultaneously expanding the exploration footprint across the broader Serra Negra complex.

What is a Carbonatite — and Why Does It Matter for Rare Earths Investors?

Carbonatite is a rare type of volcanic rock composed predominantly of carbonate minerals rather than the typical silicate minerals found in most igneous rocks. Unlike most rocks formed from silica-rich molten material, carbonatites originate from carbonate-rich molten material deep within the Earth's mantle. This unusual chemistry makes them one of the most important host rock types for rare earth elements, niobium, phosphate, and other critical minerals.

Furthermore, carbonatites are globally rare — they represent less than 1% of all igneous rocks — but they are disproportionately significant for critical minerals. The world's largest REE deposits and niobium operations, including Araxá and Mountain Pass, are associated with carbonatite systems.

Why Does This Matter for Investors?

When a carbonatite complex of Serra Negra's scale has never been properly tested for REEs, the potential resource upside is genuinely unknown. The early-stage assay and drilling programs underway are designed specifically to begin answering that question.

Glossary of Key Terms

• REE (Rare Earth Elements): A group of 17 metallic elements critical to electric vehicles, wind turbines, defence electronics, and other high-technology applications.
• pXRF (Portable X-Ray Fluorescence): A handheld instrument used in the field to screen rock samples for elemental composition, providing rapid preliminary data before laboratory assays.
• Niobium (Nb): A critical metal used primarily in high-strength steel alloys and increasingly in battery technology.
• APIP (Alto Paranaíba Igneous Province): A geological province in central Brazil known for hosting several world-class carbonatite-associated mineral deposits.
• QAQC (Quality Assurance / Quality Control): A rigorous sampling and testing protocol that ensures laboratory assay results are accurate and reproducible — a prerequisite for any future JORC-compliant resource estimate.

Historic Core Re-Assay: Early Data Coming Within Weeks

Oceana's technical team has been deployed to Belo Horizonte, Brazil, to oversee the re-logging and re-sampling of approximately 8,000m of palletised historic core. The programme involves:

• Full re-logging and photography of core trays
• Quarter-core sampling on 1m intervals for laboratory assay
• Introduction of assay blanks and standards for QAQC compliance
• Weekly sample batch dispatches to a commercial laboratory

The first 10–20 holes are being processed at the existing storage facility in Belo Horizonte. Concurrently, the company is identifying and leasing a warehouse closer to the project in the town of Patrocínio, approximately 20km west of Serra Negra, which will serve as the ongoing processing and storage hub.

Results from the re-assay programme are expected to begin flowing in coming weeks, with batches announced to the market on a regular basis. The full re-logging and sampling campaign is expected to continue for 2–3 months.

Initial 20,000m Drilling Program: Two Rigs to Start, More to Follow

Drilling applications have been submitted with the relevant statutory authorities, and tenders have been sought from multiple contractors already active in the region and familiar with local ground conditions.

The programme is structured to begin with two diamond drill rigs, with the intent to add further rigs as protocols are established and results begin to inform targeting. This phased ramp-up allows the team to validate logging and sampling protocols before scaling, whilst maintaining the flexibility to fast-track the resource drill-out if early results support it.

What Are the Primary Drilling Objectives?

The Oceana Metals Serra Negra rare earths drilling program in Brazil has two primary objectives:

1. Define the scale and continuity of the central REE target area — sufficient to support an initial JORC Resource estimate later in 2026
2. Test extensions and identify new targets across the broader Serra Negra carbonatite complex, including REE and niobium targets that may emerge from the concurrent historic core re-assay campaign

Geophysical Surveys: Mapping the Architecture of a World-Scale Complex

Serra Negra has never been subject to detailed geophysical surveys — a significant knowledge gap for a complex of this size. In addition to the drilling programme, three survey types are being planned to address this gap:

• 50m line-spaced drone aeromagnetics — to define geological domains and structural features
• Close-spaced (50–100m) ground gravity — to support density inversion modelling and density contrast mapping
• Airborne EM survey — to define the thickness of conductive cover and identify basement features

Together, these surveys will provide the first comprehensive geophysical picture of Serra Negra's carbonatite architecture, improve understanding of mineralisation controls, and generate new drilling targets across the broader complex — including the untested areas beyond the central REE zone.

Brazil Team: Building Local Capacity on the Ground

Two senior appointments have been announced as Oceana begins assembling its local Brazilian operational team:

• Ms Marina Silva — Land Access, Environment Permitting and Environmental Studies Manager. Silva has already commenced drill permitting submissions and is working with the company's community consultant on land access discussions with local landowners.
• Ms Cintia Maia — Local Manager of the newly incorporated Oceana Minerals Brazil Ltda, the company's Brazilian operating subsidiary that will own the Serra Negra assets.

Oceana is also recruiting additional technical personnel and engaging contract geological service providers whilst its full local team is established. The establishment of a local subsidiary and appointment of experienced local personnel with permitting and community relations expertise are important operational foundations for a project of this scale.

Indicative News Flow: Multiple Catalysts on the Horizon

The combination of parallel workstreams means investors can expect a steady stream of newsflow from the Oceana Metals Serra Negra rare earths drilling program in Brazil over the coming months. Based on the indicative timetable outlined by the company:

Financial Position: Funded to Execute

Oceana reports a pro forma cash position of approximately A$17.6 million following completion of the Serra Negra acquisition and Tranche 2 of its Placement, subject to Shareholder approval. This provides the company with the financial capacity to execute all three legs of its planned exploration campaign — drilling, geophysics, and re-assaying — without near-term funding pressure.

The Investment Case: Why Serra Negra Warrants Attention

The Serra Negra story rests on a straightforward but compelling premise: a world-scale carbonatite complex in a proven REE and niobium jurisdiction has never been properly tested for these metals. The convergence of several factors makes the current exploration phase particularly significant for investors monitoring the rare earths sector:

• Scale of the geological target — at 10km wide, Serra Negra is substantially larger than established neighbouring complexes with confirmed world-class mineralisation
• Established regional precedent — the APIP province hosts Araxá, one of the world's most significant REE and niobium systems; Serra Negra sits in the same geological framework
• Early positive signals — pXRF screening and laboratory check assays from historical core have already returned significant REE readings, providing a basis for the resource-definition drilling programme
• Multiple near-term catalysts — the parallel structure of the current programme means results from re-assaying, new drilling, and geophysics could all arrive within the same compressed timeframe
• Funded programme — with ~A$17.6m in pro forma cash, Oceana is positioned to fully execute its planned 2026 exploration campaign

Oceana Metals has moved with speed and coordination from acquisition to active exploration at Serra Negra, one of Brazil's largest and least-explored carbonatite complexes. With ~8,000m of historic core re-assay results expected within weeks, a 20,000m drilling programme imminent, and an initial resource estimate targeted for later in 2026, there are multiple near-term catalysts for investors following the rare earths and critical minerals space.

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