Nov 6, 2024

Enova Mining Hits 45m @ 2,430 ppm TREO at CODA North Project, Brazil

Introduction:

Enova Mining (ASX: ENV) has reported significant rare earth element (REE) drill results from its CODA North project in Brazil, highlighted by 45m @ 2,430 ppm TREO including 20m @ 4,004 ppm TREO.

Drill Results:

45m @ 2,430 ppm TREO from 9m (including 20m @ 4,004 ppm TREO from 33m) (CDN-RC-0015)
42m @ 2,677 ppm TREO from 16m (including 21m @ 3,701 ppm TREO from 20m) (CDN-RC-0012)
31.2m @ 3,235 ppm TREO from 37m (including 10m @ 4,482 ppm TREO from 43m) (CDN-DD-0010)
34.7m @ 2,031 ppm TREO from 8m (including 12.6m @ 3,718 ppm TREO from 30.16m) (CDN-DD-0012)
29.2m @ 2,725 ppm TREO from 6m (including 13.2m @ 4,540 ppm TREO from 22m) (CDN-DD-0014)‍
22m @ 4,034 ppm TREO from 37m (CDN-RC-0013)

Project Overview:

The CODA North project is located in Minas Gerais state, Brazil. It covers approximately 20 sq.km, with recent drilling delineating mineralization under approximately 11 sq.km. The project area consists of extensive flat, accessible pasture and farmlands available for drilling.

Mineralization is associated with the Patos Formation, a horizontal bed of kamafugite up to 40 meters thick.

Program Details:

Enova has completed 3,101m of drilling at CODA North, including 24 diamond drill holes totaling 1,310m and 40 reverse circulation holes totaling 1,791m. The company has also commenced drilling at the CODA Central project site with 6 RC holes totaling 297m. Drilling has confirmed strike extension of mineralization across the tenement, with high-grade REE mineralization identified in multiple holes.

Understanding These Results:

The reported intersections represent significant thicknesses of REE mineralization at grades considered economically viable for ionic adsorption clay-type deposits. The consistent high NdPr content (over 20% of TREO) adds considerable value to the mineralization.

The extensive lateral continuity and thickness of mineralization suggest potential for a large-scale, near-surface REE resource. The flat terrain and accessibility of the project area are favorable factors for potential future mining operations.

Management Commentary:

Enova CEO Eric Vesel stated:

"Recent drill results further reinforce our confidence in a significant, high-grade REE deposit at CODA North, supplying crucial data that will be used to develop a comprehensive resource model. Our team has strategically advanced exploration across CODA North, using both wide-spaced and infill drilling to ensure thorough coverage. We will continue to update the market as assay results come in and are actively engaging expert service providers to begin metallurgical testing on our mineralisation samples. The progress to date has exceeded our initial expectations, and we’re keen to maintain this momentum.”

Next Steps & Catalysts:

Enova is preparing samples for further analysis and has dispatched composite samples to specialized laboratories for mineral characterization and sighter leach tests. Over 1,000 samples from CODA North are still undergoing assay at the SGS Geosol laboratory.

The company plans to continue exploration at CODA North with a mix of infill and step-out drilling to expand and refine the high-grade REE mineralized zones. Enova will also advance exploration at the newly commenced CODA Central project and plans future work at CODA East, XN, XS, and South project sites.

Commodity Outlook:

Rare earth elements, particularly neodymium and praseodymium (NdPr), are in high demand for their use in permanent magnets essential for electric vehicles and renewable energy technologies. Brazil's supportive mining environment and Enova's project location with good infrastructure position the company well in this context.

Conclusion:

The latest results from CODA North demonstrate potential for a large-scale REE resource with attractive grades and mineralogy. With mineralization open along strike and at depth, and multiple unexplored project areas, Enova Mining is well-positioned to continue expanding its resource base. The project's location in Brazil, with excellent infrastructure and a supportive mining environment, adds to its strategic value.

Sources:

ENV Drill Results Announcement

Additional Figures:

Australia

ASX

Rare Earths

Nov 4, 2024