Oceana initiates 20,000m rare earth drilling campaign in Brazil

Oceana Metals (ASX:OCN) has commenced a 20,000-meter diamond drilling campaign at its Serra Negra project in Minas Gerais, Brazil. This marks the first rare earth element (REE) focused exploration activity at the site in over a decade, concentrating on a 1.5 by 1.5 kilometer central corridor. The initiative aims to define the extent and nature of mineralization to establish a maiden resource estimate for the carbonatite complex.

Initial data from re-sampling historical core supports the potential of the target zone. Two holes located approximately 300 meters apart on the same section returned significant intercepts, including 50 meters at 4.0% total rare earth oxides (TREO) and 22 meters at 4.7% TREO. These figures indicate grades and thicknesses that compete with top-tier global carbonatite-hosted deposits, according to Managing Director Mick Wilson.

Operational status and funding position

Drilling operations are currently underway with portable rigs supplied by Energold Drilling. The company has secured access agreements and environmental approvals for the first phase of the program. Meanwhile, re-sampling of 8,000 meters of historical drill core continues, with additional assays pending to further validate the geological model.

Oceana holds a cash balance of $8.16 million as of June 30, 2026, bolstered by $12.6 million received from the second tranche of a capital placement in July 2026. The company is also finalizing its acquisition of Songeo Mineração, an expected near-term completion that will further consolidate its operational footprint in the region.

Forward timeline for resource estimation

The company anticipates receiving initial assay results from the new drilling program in the first quarter of 2026. Concurrently, Oceana plans to expand its drilling capacity to accelerate data collection. A maiden mineral resource estimate is targeted for release in the coming months, dependent on the successful integration of new drill data with historical core assays.

Strategic focus on critical metals

As an explorer focused on rare earths, lithium, and other critical battery metals, Oceana is positioning the Serra Negra project as a key asset in its portfolio. The current campaign is designed to transition the project from exploration to resource definition, providing the foundational data required for future development decisions. The company continues to monitor market conditions for critical minerals while executing its exploration roadmap.