New Critical Mineral Intercepts Shine a Spotlight on Brazil's Mining Opportunity

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Wednesday, July 22, 2026

Gallium rarely gets mined on purpose. It is usually pulled out as a by-product of aluminum and zinc processing rather than mined in its own right, and Canada, the United States and the European Union all classify it as a critical mineral. The same holds for the rare earths that build the strongest permanent magnets. When both turn up together, near surface, in an established mining jurisdiction outside China, the geology becomes more than a local exploration story; it becomes part of a broader supply-security question.

Spark Energy Minerals Inc. (CSE: SPRK) (OTC: SPARF) (Frankfurt: 8PC) has just made that question bigger. The company reported assay results from twelve reverse-circulation step-out holes at the Cruzeta target of its flagship Arapaima Project in Brazil's Lithium Valley, Minas Gerais. The drilling extended the mineralized trend roughly 2.9 kilometres westward from the original discovery area, and the Cruzeta target now outlines a footprint of about 4.4 kilometres east to west by 1.5 kilometres north to south, one continuous interpreted trend with an eastern and a western area. Gallium was intersected from surface in all twelve holes.

The Intercepts

The standout hole, ARA-RC-011 in the western area of Cruzeta, returned 30 metres grading 69 g/t gallium oxide from surface, including a two-metre sample at 85 g/t, the highest of the program. ARA-RC-012 added 12 metres at 77 g/t gallium oxide from surface. Beneath the near-surface gallium, RC-011 cut 14 metres grading 3,125 ppm total rare earth oxides, including a two-metre interval at 12,039 ppm, or 1.20%. In the eastern area, ARA-RC-018 returned 32 metres at 2,456 ppm TREO. Magnet rare earths run as high as roughly a quarter of the rare earth basket in the strongest holes. All values are in-situ analytical results, and no metallurgical recovery is implied.

Why The Expansion Matters

The grades matter, but the shape of the system matters more. Each of the twelve holes repeated the same vertical pattern, near-surface gallium passing down into a thicker rare earth zone, and that pattern now holds across a target nearly three kilometres wide. Spark interprets the results as consistent with a vertically zoned, ionic-adsorption clay-style profile, a weathering-hosted deposit style known globally for rare earth mineralization. The western area, rather than diluting the discovery, delivered several of the strongest results in the program, reinforcing Spark's interpretation of Cruzeta as a single continuous mineralized trend, an interpretation that has not yet been verified by a mineral resource estimate. Metallurgical test work is underway at ANSTO in Australia, the step that will eventually address what can be recovered.

The Capital Backing The Basket

The strategic logic shows up in how capital is flowing, and lately it has been flowing into Brazil. In April 2026, USA Rare Earth, Inc. (Nasdaq: USAR) announced a definitive agreement to acquire 100% of Serra Verde Group, owner of the Pela Ema ionic-clay rare earth mine and processing plant in Goiás, Brazil, in a transaction valued at approximately US$2.8 billion, expected to close in the third quarter of 2026, subject to regulatory approvals. The deal is more than M&A. It anchors USA Rare Earth's strategy of integrating mining, processing, separation, metallization and magnet manufacturing into a single mine-to-magnet platform, creating what the companies describe as the first fully integrated mine-to-magnet rare earth platform outside Asia, and it plants that platform's upstream base squarely in Brazil. Serra Verde is already in commercial production and is the only scaled producer of all four magnet rare earth elements outside Asia. Just as telling as the price tag is the risk-redution framework around the asset: a 15-year offtake covering 100% of Phase I production to a special purpose vehicle capitalized by U.S. government parties and private capital sources, with price floors for neodymium, praseodymium, dysprosium and terbium, alongside a US$565 million financing package from the U.S. International Development Finance Corporation. USA Rare Earth has separately finalized definitive agreements with the U.S. Department of Commerce that could unlock up to US$1.6 billion in federal incentives and loan capacity across that same mine-to-magnet chain, which includes gallium and heavy rare earths from its Round Top deposit in Texas.

The read-through for Spark is direct. U.S. agencies and U.S. capital are building mine-to-magnet supply chains on Brazilian ionic-clay rare earths, the same broad deposit style Spark is now testing at Arapaima, in the same country. That is why a fresh, near-surface exploration target containing gallium and rare earths in Brazil can draw attention well before a resource is defined.

A Model Being Built Into Supply Chains

The clay-hosted model itself is moving from theory to construction. Aclara Resources Inc. (TSX: ARA) is advancing two ionic-clay heavy rare earth deposits in the Americas, its flagship Carina Project in Goiás, Brazil and the Penco Module in Chile, and is building a vertically integrated path from mine to magnet alloys, including a dedicated separation facility in Louisiana that recently secured a tax exemption worth more than US$20 million. Aclara's focus on the heavy rare earths most exposed to China's export controls is the same reason Spark's IAC-style interpretation is drawing attention at the exploration stage. Spark holds roughly 91,900 hectares at Arapaima, and its chairman and chief executive, Dr. Fernando Tallarico, brings a track record of rare earth discovery in Brazil’s Lithium Valley region that is now helping guide Spark’s exploration strategy at Arapaima.

Brazil as the Backdrop

Location does much of the quiet work here. Minas Gerais is one of Brazil's premier mining states, threaded with the rail, road and port infrastructure that Vale S.A. (NYSE: VALE) has relied on for decades, including the Vitória-Minas Railway, whose concession agreements Vale is now working to optimize with federal authorities. That existing logistics base can reduce some of the costs and delays that burden remote greenfield exploration, and it is part of why Brazil's Lithium Valley has drawn a cluster of critical-mineral developers. The state itself is engaged as well. In 2026, Spark signed a Protocol of Intentions with the Government of the State of Minas Gerais, through the State Secretariat for Economic Development (SEDE) and Invest Minas, at the 3rd Brazil Lithium & Critical Minerals Summit in Belo Horizonte, formalizing state-level support for the advancement of the Arapaima Project, a signing that drew coverage across Brazilian industry and business media.

Spark remains an exploration-stage company with no defined mineral resource, and no economics or metallurgical recoveries have been established. What the step-out program accomplished is narrower and still meaningful. It carried the mineralized trend nearly three kilometres westward within the single Cruzeta target, substantially enlarging the footprint Spark now has to drill. With the 2,000-metre follow-up program nearing completion and metallurgical results pending from ANSTO, the question shifts toward how far the interpreted system may run.

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