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Rare Earths Americas (NYSE American: REA) announced Wednesday initial drill results indicating widespread, near-surface mineralization with heavy rare earth enrichment at its 100%-owned Homer project in Brazil’s Goiás Alkaline province.
More than 6,500 meters of drilling have been completed at the Homer project, with multiple drill intercepts grading more than 2,000 ppm total rare earth oxides (TREO) over intervals exceeding 10 meters.
REA is focused on heavy rare earth elements used in permanent magnets and defense applications.
The company, which went public in May, said growing confidence in the scale and potential of the system, supported by airborne magnetics, soil geochemistry, geological mapping, and gravity surveying, led to the commencement of a fully funded $5 million, 15,000-meter reverse circulation and diamond drilling program in June.
The ongoing drill campaign has intersected widespread, near-surface mineralization across an expansive exploration footprint, reinforcing the geological model of a major alkaline-carbonatite system anchored by a ring-shaped magnetic anomaly exceeding 35 km² and extending more than 6.5 km along its major axis, the company said.
REA said initial drilling has confirmed mineralization across a tested area of approximately 2.15 km², representing less than 20% of the primary geochemical anomaly currently identified at Homer-A and less than7% of the total magnetic geophysical anomaly.
Results also indicate elevated heavy rare earth oxide (HREO) distributions and exceptional concentrations of magnetic rare earth oxides, with multiple intercepts reporting HREOs exceeding 30% of TREO, neodymium-praseodymium (NdPr) exceeding 25%, and combined dysprosium and terbium (DyTb) exceeding 2%.
Preliminary results have also identified zones enriched in niobium and tantalum associated with specific magmatic phases of the system, the company said, adding that all of the mineralized intersections, including TREO, niobium, and tantalum, occur specifically within the near-surface soil and saprolite enrichment profiles.
Within these weathered zones, it said, scandium, typically grouped with rare earth elements due to shared affinities returned notable grades in targeted intercepts, indicating a component that warrants further evaluation. This distribution reflects a dynamic alkaline-carbonatite complex that has undergone geochemical evolution, followed by secondary enrichment, it said.
The company said it has accelerated drilling activities through the addition of two drill rigs, bringing the total fleet to four rigs, and that it expects to complete the current drill program by year-end and is targeting publication of an initial Mineral Resource Estimate for the project in 2027.
“Homer has advanced rapidly since our IPO in May. At that time, Homer was not identified as a material project in our S-1 Registration Statement; today, the first approximately 1,250 meters of assay results have confirmed widespread, near-surface clay-hosted rare earth mineralization with strong enrichment in dysprosium, terbium and other magnetic rare earths,” Rare Earths Americas CEO Donald Swartz said in a news release.
“What stands out is the combination of scale, near-surface mineralization and heavymagnet enrichment—and how early we are in testing the system,” Swartz said. “These assays represent 8% of our planned 15,000-meter program, large portions of Homer-A remain untested, and more than 6,500 meters have already been drilled. That is why we doubled the drill fleet to four rigs.
Our focus now is to expand the footprint, establish continuity and advance metallurgical testing as Homer moves into its next stage of evaluation. In only a few months, Homer-A has progressed from an early exploration opportunity to a significant focus of our ongoing exploration program.”
Rare Earth Americas controls four exploration projects, including ionic clay deposits in Brazil and a monazite-rich sands project in Georgia that management believes could represent the source rock for rare earth-bearing mineral sands already mined along the US coastal plain.
REA stock closed the day down 1.3% in New York. The company has a $219 million market capitalization.
