#Brazil #São Paulo #IMC Rare Earths #Itarantim Project #Terbium Discovery

IMC Rare Earths Expands Resource Base at Itarantim with New Terbium Discovery

IMC Rare Earths Ltd (NYSE American: IMC) has made an exciting new discovery at their Itarantim rare earth project located in Brazil. This significant find involves a shallow, high-grade, terbium-rich ionic clay in Block H, which lies outside of the existing 1.1 billion-tonne Mineral Resource that had previously been defined by the company.

The recent drilling has revealed that mineralization begins just two meters below the surface, highlighting both the accessibility and the rich content of this new site. Initial results showcase a strong mineral profile including a seven-meter interval grading at 5,695 ppm Total Rare Earth Oxides (TREO), 38 ppm Terbium Oxide (Tb4O7), and 258 ppm Dysprosium Oxide (Dy2O3). Notably, a three-meter segment further enriches these values to 7,841 ppm TREO, 52 ppm Tb4O7, and 357 ppm Dy2O3.

Key Highlights of the Discovery

The discovery at Block H underscores the potential growth of IMC's resource base:

• - The mineralization starts just two meters below the surface, which indicates a shallow and easily accessible resource.
• - Initial ammonium sulphate leach tests have shown impressive recovery rates of 64% to 83% of the terbium from the ore over the upper three meters.
• - The zone is not included in the current resource estimates, thus presenting a new area for exploration and potential growth.

Future Drilling Plans

As drilling operations advance, IMC management is focused on several key objectives:
1. Infill and Step-Out Drilling at Block H: This involves assessing the extent, thickness, and grade continuity of the newly discovered zone to evaluate if it can eventually be integrated into the Itarantim Mineral Resource.
2. Exploration at Block D: In addition to Block H, the company intends to conduct diamond drilling to explore the continuation of enriched zones previously identified in Block D, which has shown promising mineralization results including 20 meters of continuous mineralization.

CEO Frank Scolaro expressed enthusiasm about the discoveries, stating, "Block H is precisely what we have been searching for—a high-grade, terbium-rich clay beginning just two meters from the surface. The extraction success from initial tests is particularly encouraging, and it opens up new avenues for potential resource expansion."

The Importance of Terbium

Terbium is a critical heavy rare earth element that plays a vital role in various high-performance technologies, including electric vehicle motors, renewable energy solutions like wind turbines, and even sophisticated data center machinery. In light of recent export restrictions from China on rare earth elements, the strategic significance of sources like Itarantim has never been higher. The U.S. Geological Survey's 2025 report underscores America’s reliance on imported yttrium, a valuable byproduct of processes involving terbium.

Next Steps for IMC Rare Earths

IMC's exploration program is now in motion to define both the size of the Block H discovery and investigate the potential of additional resources in Block D. By selecting an engineering firm to evaluate various processing methods—such as vat, heap, and in-situ leaching—the company is advancing towards an operational model that could bring these rich deposits into production sooner and with potentially lower capital expenses.

As ongoing drilling continues to affirm the richness of both Blocks H and D, investors and the market are eagerly watching for updated resource estimates, expected later in 2026. IMC Rare Earths is strategically positioning itself to become a key player in the rare earths supply chain, promising to unlock the latent potential within Brazil's Itarantim project.