Brazilian Rare Earths Restructures Amargosa Deal, Confirms High-Grade Gallium Discovery
Brazilian Rare Earths (BRE) has revised its acquisition terms for the Amargosa Bauxite Project in Brazil, reaching a new agreement with Rio de Contas Desenvolvimentos Minerais (Rio Tinto Brazil). The updated terms replace a prior US$40 million milestone payment with a fixed royalty of US$1.00 per wet tonne on future bauxite sales.
The Amargosa project, located in Bahia and adjacent to BRE’s rare earth tenements, was acquired from Rio Tinto in 2023. The site has undergone over a decade of exploration, including nearly 57,000 meters of drilling across more than 4,200 holes. Results have revealed extensive zones of high-grade bauxite with intercepts such as 27.5 meters at 51.3% total available alumina and low levels of impurities.
In addition, BRE has identified a high-grade gallium discovery at the nearby Pelé Bauxite Project after re-assaying 1,275 historical samples. Assays returned gallium oxide grades of up to 190 ppm Ga₂O₃, with an average of 75 ppm, positioning Amargosa as one of the highest-grade undeveloped gallium prospects globally.
To fast-track development, BRE has engaged RPM Global to prepare a JORC-compliant Mineral Resource Estimate and a Scoping Study for the Amargosa bauxite-gallium project. The company aims to meet growing demand for strategic materials while addressing emerging supply chain risks in global bauxite and gallium markets.
