Enova Mining starts resource drilling at Brazil’s Naked Hill project

Enova Mining Accelerates Resource Delineation at Brazil’s Strategic Naked Hill REE Project

São Paulo, Brazil – July 27, 2026 – Enova Mining, a notable player in the critical minerals sector, has officially commenced an intensive resource delineation drilling program at its Naked Hill Project. Located within the highly prospective East Salinas region of Minas Gerais, Brazil, this program represents a pivotal step in confirming and expanding what could become a significant source of saprolite-hosted rare earth elements (REEs), crucial for the burgeoning global high-tech and green energy industries.

The commencement of this drilling campaign, as announced on July 27, 2026, signals Enova's strategic commitment to advancing the Naked Hill Project. The primary objective is to solidify the understanding of the extent and continuity of the ionic adsorption clay (IAC) REE mineralization, a coveted deposit type known for its relatively simpler and more cost-effective extraction processes compared to hard rock REE deposits. This development is particularly timely, given the increasing geopolitical focus on securing diversified supplies of these critical minerals outside of traditional production hubs.

The Intensive Drilling Program: Defining the Resource

The current drilling initiative is structured as a comprehensive 198-auger drill-hole program, designed to systematically explore and delineate the mineralization across the project area. This program will be executed in three distinct phases, each contributing incrementally to the geological understanding of the deposit.

• Phase One: Encompasses 61 drill-holes, strategically spaced on a 200m × 200m grid pattern. This initial phase aims to provide a broad understanding of the mineralized zones, acting as a reconnaissance stage to identify areas requiring denser sampling.
• Phases Two and Three: These subsequent phases will cover the remaining 137 holes, employing a tighter 100m × 100m grid pattern. This closer spacing is crucial for achieving the necessary resolution to support a robust resource estimate, providing greater confidence in the continuity and grade distribution of the REE mineralization.

This systematic approach builds upon prior exploration efforts that have already yielded encouraging results. To date, 19 drill-holes – comprising 14 diamond holes and five auger holes – have been completed at both the Bald Hill and Naked Hill prospects within the larger project area. Assay and leach test results from 16 of these initial holes have previously been reported, laying the groundwork for the current, more extensive program. The use of auger drilling is particularly suited for saprolite-hosted deposits, allowing for efficient and accurate sampling of the shallower, weathered REE-bearing clays.

Unlocking Value: Metallurgical Test Work and REE Recoveries

In parallel with the resource definition drilling, Enova Mining is actively conducting integrated mineral characterization and hydrometallurgical test work. This critical component endeavors to examine and optimize selective REE extraction options, a key determinant of a project's economic viability. Understanding the metallurgical properties of the ore body is as important as defining its size, as it directly impacts processing costs and overall recoveries.

Previous leach test results from auger drilling at Bald Hill and Naked Hill have confirmed the presence of ionic adsorption clay (IAC) amenable saprolite, a key indicator for potential low-cost extraction. These results showcased promising recoveries, particularly for magnet rare earth oxides (MREOs) and heavy rare earth oxides (HREOs), which are of paramount importance to high-value applications:

• Hole EAS-AD-0001: Demonstrated recoveries of 43.2% MREOs and 38.7% HREOs over an extensive 13-meter interval. Impressively, peak recoveries within this interval reached 84.4% for both MREOs and HREOs, suggesting localized zones of exceptionally high extractability.
• Hole EAS-AD-0002: Reported recoveries of 31% MREOs and 39.1% HREOs across a 2.5-meter interval starting from a shallow depth of 4 meters. Peak values for this hole were 37.9% MREOs and 41.2% HREOs.

MREOs, including neodymium, praseodymium, dysprosium, and terbium, are essential components in permanent magnets used in electric vehicles, wind turbines, and advanced electronics. HREOs, such as dysprosium, terbium, europium, and yttrium, are critical for high-performance applications in defense, medical imaging, and specialized lighting. The confirmed presence and amenability of these critical REEs, especially with high peak recoveries, underscores the significant potential of the Naked Hill Project. The metallurgical evaluations are being expertly guided by Alexandre Rocha Da Rocha and the specialized team at Geological Consultores Associados.

Geological Context and Regional Exploration

The identified mineralization at Naked Hill is situated within IAC REE-bearing saprolite overlying the Medina Intrusive Granite Complex. This geological setting is highly favorable and consistent with well-understood granite-derived saprolite systems, which are globally recognized as significant sources of readily extractable REEs. These types of deposits typically form from the weathering of granitic rocks, concentrating REEs in the clay-rich saprolite layer through ionic bonding, making them amenable to weak acid leaching.

Beyond the immediate focus on Naked Hill, Enova Mining is concurrently undertaking broader regional exploration activities across its extensive tenement holdings in Brazil. These efforts include comprehensive regional field reconnaissance, systematic geochemical sampling, and additional auger drilling. These activities are not only focused on the East Salinas tenements but also extend to the Santo Antonio do Jacinto, Carai, and Resplendor projects. Such a wide-ranging exploration strategy highlights Enova's ambition to identify and unlock further REE potential within Brazil's prolific mineralized belts. Results from these broader activities are anticipated to be released as they become available, potentially adding further upside to Enova’s Brazilian portfolio.

Strategic Vision and Corporate Maneuvering

Eric Vesel, CEO and Executive Director of Enova Mining, articulated the company's clear strategic direction: “Our focus is on rapidly delineating an IAC rare earth resource at the Naked Hill Project, starting at the Bald Hill Prospect.” He emphasized that "Previous drilling and metallurgical test work have demonstrated the project’s potential, and this programme will define the extent and continuity of the mineralisation." Mr. Vesel affirmed that "Resource delineation drilling and integrated mineral characterisation are now under way as we continue advancing the project." This statement underscores the company's commitment to expediting the project towards a maiden resource estimate and subsequent development phases.

Adding to its strategic positioning in Brazil, Enova Mining announced a significant corporate development in February 2024. The company signed a binding option agreement with Rodrigo de Brito Mello, granting Enova an exclusive option to acquire a 100% interest in the CODA tenements. Such an agreement is a crucial move for mining companies, enabling them to expand their footprint and secure prospective land packages in regions identified for their strategic mineral potential, thereby further strengthening their long-term growth pipeline.

Why This Matters: The Global REE Landscape and Brazil's Role

The developments at Enova Mining's Naked Hill Project unfold against a backdrop of intensifying global demand and strategic competition for rare earth elements. REEs are indispensable for a vast array of modern technologies, serving as critical components in everything from electric vehicle motors and wind turbine generators to smartphones, medical devices, and advanced defense systems. The global push for decarbonization and technological innovation is driving unprecedented demand for these elements.

For decades, China has dominated the global supply chain for REEs, controlling a significant portion of both mining and processing capacity. This concentration of supply has spurred Western nations and their allies to actively seek new, diversified, and secure sources. Brazil, with its vast geological potential and emerging focus on critical minerals, is increasingly being recognized as a viable alternative for REE supply, particularly for IAC deposits.

IAC REE deposits, like those at Naked Hill, hold particular strategic importance. Unlike hard rock deposits that often require capital-intensive mining and complex, environmentally challenging beneficiation processes, IAC deposits are typically found closer to the surface within weathered clay profiles. Their ionic bonding characteristic allows for simpler, lower-cost acidic leaching to extract the REEs, often with lower environmental footprints. The demonstrated amenability to IAC saprolite at Naked Hill, combined with encouraging MREO and HREO recoveries, positions the project advantageously in an industry eager for efficient and sustainable production methods.

The investment in defining and developing these resources in Brazil directly contributes to global efforts to de-risk supply chains and foster greater stability in the market for these indispensable elements. For industry professionals and investors, projects like Naked Hill represent not only potential financial returns but also a contribution to the global energy transition and technological advancement.

Future Outlook and Next Steps

With the current 198-hole auger drilling program underway, the immediate future for Enova Mining will involve the meticulous collection, analysis, and interpretation of geological data. The industry will closely watch for the release of new assay and leach test results, which will progressively build a more detailed picture of the Naked Hill Project’s resource potential. The ultimate goal of this drilling campaign is to support the estimation of a maiden mineral resource, a critical milestone that will allow Enova to quantify the project’s scale and economic viability.

Successfully defining a significant IAC REE resource at Naked Hill, coupled with optimized selective extraction processes, could firmly establish Enova Mining as a key player in the rare earths sector. Beyond the initial resource estimate, the company would then look towards preliminary economic assessments, feasibility studies, and ultimately, project development. The continued success of Naked Hill, alongside the potential identification of new resources in other regional tenements, could significantly bolster Brazil's position as a reliable and growing source of critical rare earth elements, vital for the global economy's technological future.