Takeaways:

  • Core Energy Minerals (ASX: CR3) is advancing its 100 per cent owned Itambe rare earths project in Bahia State, Brazil.
  • Itambe was acquired from Rio Tinto in December 2025 and sits within the Rocha da Rocha Rare Earth Province.
  • Initial auger drilling has returned up to 5.6m at 1,429 ppm TREO and 2.0m at 1,546 ppm TREO.
  • Particle size analysis indicates rare earths concentrate in fine clay, delivering grades up to 380 per cent higher than bulk.
  • A maiden drilling campaign is targeted for the second quarter of 2026 across both Itambe and Tunas/Campo Largo.

Core Energy Minerals (ASX:CR3) has positioned itself as one of the more closely watched ASX small-cap rare earths plays of 2026, advancing its 100 per cent owned Itambe rare earths project in Bahia State, Brazil. The asset was acquired from Rio Tinto in December 2025 and sits within the Rocha da Rocha Rare Earth Province, which hosts several globally significant rare earth deposits.

The 2026 work program is fully funded and includes auger drilling, extensive soil sampling and reconnaissance mapping at both Itambe and the company’s separate Tunas/Campo Largo project. The strategic objective is to define drill targets in the first quarter and launch maiden drilling campaigns across both projects in the second quarter.

Encouraging early auger results

Core has reported initial auger drilling results at Itambe, confirming strong exploration potential in the project’s existing soil anomalies despite challenges from near-surface quartz rubble. Standout intervals included 5.6 metres at 1,429 ppm total rare earth oxides (TREO) and 2.0 metres at 1,546 ppm TREO from fine-fraction samples.

Importantly, the company has reported particle size analysis indicating that rare earths are concentrated in fine clay fractions, with grades up to 380 per cent higher than bulk samples. This is potentially material for project metallurgy, as it suggests beneficiation strategies could meaningfully upgrade the run-of-mine grade and improve project Economics.

Why the Rocha da Rocha matters

The Rocha da Rocha Rare Earth Province is one of the more interesting rare earth jurisdictions globally, hosting projects with high magnet metal content and amenable to ionic clay-style mineralisation. Brazilian Rare Earths Limited has anchored institutional attention on the region, while Core’s Itambe asset offers ASX investors a smaller-cap, earlier-stage entry point.

Brazilian rare earth deposits often differ in style from Western Australian and African projects, with potential for ionic clay-style mineralisation similar in concept to the major southern Chinese deposits. If confirmed, this style can be associated with simpler processing flow sheets, lower Capital intensity and high magnet metal recoveries — attractive features in a market increasingly focused on NdPr Supply security.

Acquisition from Rio Tinto: a credibility marker

The provenance of Itambe matters. Rio Tinto’s earlier work on the project provides a layer of historical data and exploration that Core is now leveraging. The fact that the major divested the asset to a smaller explorer is consistent with a portfolio rationalisation rather than a definitive view on geology, and it also signals that Rio Tinto saw enough merit to take the asset to a defined stage before divestment.

For ASX investors, acquisitions from major resources companies are often viewed positively in the small-cap rare earths space, where access to high-quality ground is one of the principal differentiators. Core’s Itambe transaction has been positioned as a strategic step that lifts the company’s portfolio quality.

Investor briefing on 30 April 2026

Core has scheduled an investor briefing for 30 April 2026 to update the market on Brazilian rare earths and broader critical minerals progress. The session, including a Q&Amp;A segment, is intended to underscore the company’s exploration program and position it more clearly within the ASX rare earths cohort.

Investor briefings around active exploration programs have become an increasingly common engagement tool. Companies that maintain a clear and consistent communications cadence tend to retain stronger institutional support, particularly as pre-resource explorers compete for attention in a crowded market.

Sector context: Brazilian rare earths in 2026

Brazilian rare earths have moved up the global Investment agenda in 2026, supported by ionic clay-style geological analogues, strong NdPr ratios at several projects and a relatively supportive regulatory environment. Brazilian Rare Earths Limited has helped lift institutional understanding of the broader Rocha da Rocha Province, while smaller players are now defining their own targets within the same belt.

For ASX investors, Brazilian exposure provides a complement to Australian, African and Greenlandic rare earth plays. Core’s Itambe project sits among the earlier-stage Assets in the region but has the advantage of historical data, defined soil anomalies and a fully funded 2026 work program.