Jr. Reports High-Grade Rare Earths in Brazil, Plans Growth

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Exploration company Atlas Critical Minerals Corp. (JUPGF:OTCQB) announced it had filed a Technical Report Summary (TRS) confirming the presence of high-grade mineralization for both rare earth elements and titanium at its Alto do Paranaíba rare earth elements and titanium project in the western part of Minas Gerais state in Brazil.

The TRS suggests a strategic three-phase exploration initiative to advance the project toward initial resource estimates, the company said in a release. This program includes 13,000 meters of drilling across the three exploration blocks, extensive geophysical surveys such as drone magnetometry and LiDAR, along with metallurgical testing.

"This initial Technical Report for our Alto do Paranaíba Project represents a major milestone for Atlas Critical Minerals," Chairman and Chief Executive Officer Marc Fogassa said. "We are very encouraged by the consistent high-grade mineralization for rare earths and titanium seen across all tested mineral rights."

The TRS was filed under U.S. guidelines for Item 1300 of Regulation S-K and was prepared by SGS Canada Inc. It has been filed with the Securities and Exchange Commission.

The company said TRS affirms the geological potential of the Alto do Paranaíba Project, which encompasses 16 mineral rights fully owned by the company. These rights are strategically located within the Mata da Corda Group formation, known for its occurrences of rare earths and titanium. For logistical efficiency, the geological exploration of the project has been organized into three mineral rights groupings (Blocks 1, 2, and 3).

Key Highlights from Technical Report

High-grade surface sampling results (809 samples analyzed) included 608 samples that surpassed 1,000 parts per million total rare earth oxide (ppm TREO), 121 samples that exceeded 3,000 ppm TREO, and 205 samples that contained over 10% titanium dioxide (TiO₂). Block 3 yielded the highest grades, including 28,870 ppm TREO with 16.5% TiO₂, the company noted.

Selected Intercepts from Initial 144-Meter Auger Program (11 Drill Holes) included:

• Hole DHTI-001: 12 meters at 5,961 ppm TREO and 13.3% TiO₂
• Hole DHTI-002: 6 meters at 7,729 ppm TREO and 12.5% TiO₂
• Hole DHCA-00001: 4.3 meters at 4,706 ppm TREO and 15.1% TiO₂

Finally, Atlas Critical Minerals said consistent high-grade mineralization was found across all blocks:

• Block 1 averaged 3,228 ppm TREO, 12.7% TiO₂, 760 ppm MREO (mixed rare earth oxides)
• Block 2 averaged 2,364 ppm TREO, 11% TiO₂, 522 ppm MREO
• Block 3 averaged 4,906 ppm TREO, 12% TiO₂, 1,352 ppm MREO

The TRS highlights several strategic advantages for exploration at the Alto do Paranaíba Project. The project shows significant geological potential for mineralization over a large area, with positive initial results across various mineral rights. The rare earths and titanium mineralization occurs in layers close to the surface, favoring future open-pit extraction.

Consistent grades were confirmed across all tested mineral rights, with initial auger drilling from 11 drill holes validating the widespread mineralization, the release said. Additionally, the project benefits from strong infrastructure, including access to power, water, and roads.

The Mata da Corda formation is recognized for containing rare earth oxides and titanium mineralization, Atlas Critical Minerals noted. This geological unit comprises volcanoclastic rocks from the Capacete Formation and volcanic rocks from the Patos Formation, with lithotypes featuring titanium-rich minerals within a clay matrix. The strong positive correlation between rare earth elements and titanium, along with the unit's high magnetic responsiveness due to its intense magnetism, makes these deposits highly suitable for geophysical exploration. The company said this enhances the precision of targeting for its upcoming drilling programs.

According to the TRS, the company's goal is to "rapidly issue a resource estimate and, in the medium term, develop an integrated mine and processing plant project for the beneficiation of rare earth oxides and titanium."

Global Demand for Critical Minerals 'Never Been More Urgent'

Atlas Lithium Corp. (ATLX:NASDAQ) has emphasized its significant role in the critical minerals industry by maintaining around 30% ownership in Atlas Critical Minerals. This stake provides Atlas Lithium with exposure to a wide range of essential minerals, including rare earth elements, titanium, graphite, and uranium.

"Global demand for critical minerals has never been more urgent. Recent geopolitical developments have underscored the vital importance of critical minerals for economic and national security," Fogassa has said.

These elements are vital for producing permanent magnets used in electric vehicle (EV) motors, wind turbines, and various defense applications. With China currently dominating the global market in rare earth production and processing, finding alternative sources is crucial to diversify supply chains, the company said.

U.S.-based Atlas Lithium holds the largest lithium exploration portfolio in Brazil and is advancing its 180-square-mile Neves project in the region.

"We continue to view 2025 as a pivotal year for ATLX as the company transitions from a lithium developer to producer," noted Jake Sekelsky, an analyst at Alliance Global Partners, in a March 10 research report. Sekelsky maintains a Buy rating on Atlas Lithium, with a target price suggesting a 426% potential increase from its current share price.

H.C. Wainwright Analyst Heiko Ihle noted in a July 14 research note that Atlas Lithium is among the firm's top picks for the year. In March, "The company announced the successful delivery of its modular Dense Media Separation (DMS) lithium processing plant to site, a significant step toward first production at its Neves Project," wrote Ihle, who rated Atlas Lithium a Buy with a US$19 per share price target. "We reiterate that the Neves Project, located in Brazil's Lithium Valley, is fully permitted with Phase I targeting initial output of up to 150,000 tonnes (t) per year of battery-grade spodumene concentrate. Going forward, we expect Phase 2 to double its capacity and produce 300,000t annually." The analyst continued, "With Atlas's low-cost operations nearing first production, we believe that the company is well-positioned to generate strong long-term returns and provide valuable geopolitical diversification compared to other major lithium players, justifying its continued position as one of our top picks for 2025."

The Catalyst: Change Coming for Rare Earths in US

The stage is set for rare earths in the United States, with the government stepping in to make significant changes. The Pentagon is poised to become the main shareholder in MP Materials Corp. (MP:NYSE), the only rare earths miner in the U.S., following its agreement to purchase US$400 million in preferred stock, as announced by the company on July 10. The funds from this investment will be used to enhance MP's capabilities in processing rare earths and manufacturing permanent magnets, as Rick Mills from Ahead of the Herd reported.

Previously, MP Materials primarily extracted light rare earth elements from its Mountain Pass site and sent them to China for processing. This led to criticisms that the company was effectively under Chinese influence and was not contributing to the U.S. efforts in refining rare earths or producing permanent magnets. The ownership of MP Materials is mainly held by U.S. hedge funds JHL Capital Group and QVT Financial LP, along with CEO James Litinsky, who together own a 51.8% stake. Additionally, Shenghe Resources, a Chinese company with partial state ownership, holds an 8% stake in the company.

The United States has introduced policies aimed at boosting domestic production of critical minerals, including fast-tracking permits for 10 mining projects. A report from the South China Morning Post on May 20 highlighted China's increased control over rare earths and other strategic minerals, resulting in stricter measures against smuggling and export limitations. The report emphasized the essential role of rare earth elements in U.S. defense systems, noting that "Beijing has increasingly weaponized this dependency" during trade negotiations.

Wang Xiaosong, an economics professor at Renmin University of China, commented that rare earths have become "an important, key variable" in the trade tensions between the U.S. and China, underscoring the strategic importance of these elements. Wang also pointed out that the United States is "20 years behind China" in technologies for rare earth separation and purification.

Efforts to diversify sources include new agreements with countries like Ukraine and potential sourcing from Africa, although experts cited by SCMP suggest that developing the necessary infrastructure could take more than a decade.

Ownership and Share Structure

About 30% of Atlas Critical Minerals is owned by insiders and management, the company said.

Its market cap is ~US$29 million with 38.9 million shares outstanding. It trades in a 52-week range of US$0.40 and US$1.47.