en.Wedoany.com Reported - Australian-listed exploration company Gold Mountain Limited (ASX: GMN) announced on July 20, 2026, encouraging rare earth metallurgical test results from its Capivara target in Bahia, northeastern Brazil. Test data show a maximum total rare earth oxide (TREO) extraction rate of 69% and a maximum desorption rate of magnetic rare earth oxides of 63.6%, further confirming the presence of ion-adsorption clay (IAC) rare earth mineralization at the target.

Gold Mountain is an Australian mining company focused on rare earth element exploration, holding multiple rare earth, lithium, and copper projects in Brazil. Its Down Under project in Bahia covers a total area of 2,512 square kilometers, with the Capivara target located in the northwestern part of the project, approximately 70 kilometers from the Irajuba target. The metallurgical tests were conducted by the Australian Nuclear Science and Technology Organisation (ANSTO), analyzing 58 diamond drilling and auger drilling samples from both the Capivara and Irajuba targets.

Test results show that shallow saprolite samples achieved a maximum extraction rate of 65.9% for total rare earth elements and yttrium (excluding cerium). Gold Mountain Executive Director David Evans stated that these results confirm the presence of ion-adsorption clay rare earth mineralization at the Capivara target, marking a significant milestone in project advancement. He also noted that current auger drilling has only tested the upper portion of the weathering profile, and the distribution of anomalous rare earth mineralization suggests that promising saprolite-type mineralization zones may extend to greater depths.

In addition to Capivara, metallurgical tests identified three priority targets within the Irajuba area, all exhibiting characteristics consistent with ion-adsorption clay deposits and low levels of deleterious impurities. The test drill holes span a distance of up to 16 kilometers, demonstrating the extensive reach of the mineralization system. Gold Mountain stated that it is currently systematically evaluating large-scale total rare earth oxide stream sediment anomalies within the Down Under project area. The company plans to conduct follow-up detailed drilling at the Capivara target and deeper auger drilling around high-grade near-surface drill holes.

Ion-adsorption clay deposits are among the most valuable types of rare earth mineralization globally, with the advantage of being leachable using simple salt solutions such as ammonium sulfate or magnesium sulfate, resulting in significantly lower processing costs compared to hard rock deposits. These metallurgical test results provide important support for Gold Mountain's research into the distribution, metallurgical behavior, and development potential of rare earth mineralization in the Down Under project area.