Announcement • Jul 07
Rare Earths Americas Identifies Large Rare Earth-Niobium Alkaline-Carbonatite System and Commences 15,000-Meter Drill Program At Homer-A Project
Rare Earths Americas announced exploration results that strengthen the Company's geological discovery model at its 100%-owned Homer-A project in Brazil's Goiás Alkaline Province. Multiple independent exploration programs—including airborne magnetics, soil geochemistry, gamma-radiometrics, geological mapping and initial drilling—now consistently support the interpretation of a large alkaline-carbonatite system prospective for rare earth elements (REE) and niobium (Nb). Initial exploration has defined a greater than 35km² ring-shaped magnetic anomaly exceeding 6.5km along its major axis, while shallow drilling has confirmed rare earth and niobium mineralization across the target area. Carbonatite-hosted deposits represent a rare geological occurrence and are associated with some of the world's significant rare earth and niobium deposits. Identifying a potential alkaline-carbonatite system is considered an important step in rare earths exploration, as this geological environment is associated with meaningful mineralization potential. At Homer, multiple independent datasets have returned results consistent with an alkaline-carbonatite system. Each phase of exploration has produced data supportive of this model. The convergence of these datasets supports advancing the project to systematic follow-up drilling. Initial auger drilling tested only the upper, chemically weathered portion of a deep weathering profile. Despite sampling this upper weathered horizon, drilling intersected meaningful rare earth and niobium mineralization, several holes demonstrated increasing grades with depth, and most terminated in mineralization. Select holes from subsequent reverse circulation (RC) drilling has confirmed more than 120 meters of continuous weathering, demonstrating that the mineralized system extends beyond the limits of the initial auger program and that only a small portion of the overall weathering profile has been evaluated to date. Collectively, these results have strengthened REA's geological discovery model and supported the decision to commence an expanded 15,000-meter RC and diamond drilling program in June, which will continue throughout the remainder of the year. The objective of this next phase is to determine the scale, continuity and grade of the underlying mineralized alkaline-carbonatite system. While exploration remains at an early stage and additional drilling is required to determine the extent and economic significance of mineralization, the combination of a large alkaline-carbonatite footprint, strong agreement across multiple independent exploration datasets, meaningful shallow mineralization, increasing grades with depth and mineralization remaining open at depth provides a compelling geological foundation for the next phase of discovery. REA’s disclosed value is anchored by three established material projects—the Shiloh monazite project in Georgia, and separately the Alpha and Constellation ionic clay deposits in Brazil, which together host over 460 million tonnes of inferred resources. The Homer project highlights the rapid advancement of the broader exploration pipeline. Originally categorized as an early-stage exploration prospect during the recent initial public offering, the initial drill results and the validation of the greater than 35km² magnetic footprint are rapidly elevating Homer's strategic profile. In addition to its extensive rare earth’s potential, the niobium enrichment at Homer represents a strategic opportunity for REA. Niobium is a critical industrial metal with demand driven by infrastructure, advanced manufacturing, and aerospace applications, while global supply remains highly concentrated in Brazil. The Homer-A project has the potential to emerge as a meaningful new source of niobium supply within a tightly controlled market. Results are focused on Homer-A, one of three 100%-owned alkaline anomalies in Goiás, Brazil, defined as Homer A, B and C, that are consistent with alkaline-carbonatite-type geological models. These projects are along the highly prospective “Azimuth 125” lineament. This regional structural corridor is recognized for hosting alkaline-ultramafic and alkaline-carbonatite complexes associated with REE, Nb, phosphate and other critical minerals. 35km² alkaline-carbonatite target defined from airborne magnetics. Ring-shaped intrusive complex exceeding 6.5km along its major axis. Strong correlation between multiple independent exploration datasets identifying the same target area. Geological model consistent with a large alkaline-carbonatite system. Auger drilling has intersected shallow REE-Nb mineralization across the target area. Near surface intervals exceeded 2,000 ppm TREO and 400 ppm Nb2O5 in upper most chemically weathered profile. Auger drilling terminated in mineralization, suggesting the system remains open at depth. Select RC drill holes have confirmed more than 120 meters of continuous weathering, demonstrating that the mineralized system extends well beyond the depth tested by the initial auger program. Initial auger drilling sampled only the upper, chemically weathered portion of the profile, with the underlying alkaline-carbonatite system now being evaluated through extensive RC and diamond drilling. Approximately 15,000-meters of RC and diamond drilling commenced on June 17, 2026, and will continue for the remainder of the year. Program designed to test the scale, continuity and grade of the underlying alkaline-carbonatite system. First RC and diamond drill assay results expected during Third Quarter 2026. Approximately USD 5 million budgeted for Homer exploration during 2026. 625 soil samples confirm strong TREO, Nb, and radiometric anomalies. Auger soil drilling: AAD0001: 7.9m at 1,030ppm TREO from 6.1 meters depth with 161ppm Nb2O5, including 0.6 meters at 2,049ppm TREO from 8.0 meters depth. AAD0003: 14.8 meters at 1,165ppm TREO from 10.0 meters depth with 198ppm Nb2O5, including 0.8 meters at 2,111ppm TREO from 22.5 meters depth. AAD0004: 3.3 meters at 1,298ppm TREO from 16.0 meters depth with 291ppm Nb2O5. Reverse Circulation hole RC-TGA-0002 confirmed more than 120 meters of continuous clay/saprolite (assays pending), indicating an exceptionally deep weathering profile that significantly enhances confidence in the scale and fertility of the Homer-A alkaline-carbonatite system.
