Highlights

• Exceptional surface assays delivered by Equinox Resources at Campo Grande Project, Brazil, with results up to 17,346 ppm TREO.
• Shallow intercepts include:
  • 14m @ 4,022 ppm
  • 15m @ 3,268 ppm
• The system is magnet-rich and clay-hosted.
• EQN is positioned in the same geological corridor as Brazilian Rare Earths, which has a market cap of A$700M.
• Data is JORC 2012-compliant and technically sound.
• Metallurgical recovery and grade continuity are not yet proven.
• EQN is trading below a A$100M market cap.
• There is potential partnership interest emerging.
• EQN represents a high-potential exploration play.
• Awaiting critical metallurgical tests to determine commercial viability and potential rerating.

---

Equinox Resources (opens in a new tab) (ASX: EQN) has delivered (opens in a new tab) what could be one of the most eye-catching exploration updates of the quarter — a near-surface rare earth discovery at its Campo Grande Project in Bahia, Brazil, returning surface assays up to 17,346 ppm TREO (Total Rare Earth Oxides) with 20% MREO (magnet rare earth oxides).

For context, anything north of 10,000 ppm TREO places a project in rarefied company. The results — notably 14 m @ 4,022 ppm TREO and 15 m @ 3,268 ppm TREO — position Campo Grande as an emerging clay-hosted system in the same geological corridor as Brazilian Rare Earths (ASX: BRE), whose adjacent ground once drew the attention of Rio Tinto.

The Solid Ground: What the Data Proves

The drilling confirms a laterally continuous, ionic-style clay-hosted system, with shallow mineralization averaging 20–30% MREO content — meaning these are magnet metal–rich clays, not low-value light-REE zones. The key intercepts across both the Central and Northern Blocks suggest scalable mineralization suitable for simple extraction methods seen in similar ionic clays across China and Myanmar.

Technically, Equinox’s sampling and QA/QC appear sound. Independent consultant Sergio Luiz Martins Pereira (MAIG) validated the assays, which were processed by ALS and SGS Labs in Brazil under JORC 2012 standards — a high bar for data integrity.

The Mist and the Mirage: What’s Not Yet Proven

The market should temper its excitement. Surface and near-surface intercepts are not yet mineral resources, and while 17,000 ppm TREO at surface makes headlines, grade continuity, metallurgy, and leach recovery remain unanswered questions. Ionic-clay deposits are economically viable only if processing yields are high and impurities low.

Equinox also disclosed “inbound interest” for partnerships or project-level sales — intriguing but premature until metallurgical tests confirm commercial viability. Investors should view this as a high-potential exploration play, not a near-term production story.

Market and Momentum

Equinox’s market cap sits well below A$100 million, a fraction of its neighbor BRE’s ~A$700 million valuation. If metallurgical results are positive, EQN could quickly rerate. Technically, the stock is consolidating below prior resistance at A$0.38; a clean breakout above A$0.40 could invite speculative flows. But without resource definition, volatility — not valuation — will drive the trade.

Final Take:

Equinox’s results are credible, well-documented, and geologically exciting, but the commercial path is just beginning. Investors should watch for metallurgical assays and potential JV announcements — those will determine whether Campo Grande graduates from promising discovery to genuine district-scale opportunity.

©!-- /wp:paragraph -->