Brazilian Rare Earths Ltd (ASX: BRE) was one of the companies that attracted a lot of attention last year when there was a bit of a minor frenzy about diversifying rare earths supply away from China.
The company's share price has appreciated by more than 90% over the past 12 months as it has worked away at bringing its Brazilian project closer to production, and the analysts at Canaccord Genuity believe the shares have a way to run yet.
I'll let you in on what their share price target on the company is shortly, but first, let's look at what the company has announced recently.
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High-grade drilling results reported
Brazilian Rare Earths has just announced the results from 10,000m of drilling at its Monte Alto deposit, describing the results as "ultra-high grade''.
The results included 25.6m at a grade of 17.4% total rare earth oxides (TREO) in the southern part of the deposit, while there was a 9.4m intercept at 21.8% TREO in the eastern part of the deposit.
The company added:
The new drilling has expanded Monte Alto's mineralised envelope and remains open to the north, south and east, with new down-dip potential. Northern strike-extension confirmed. BRE is advancing the planned +5,000 m drilling campaign across the northern, southern and eastern growth fronts to continue expanding the mineralised envelope.
The company said the new drilling would be incorporated into an updated mineral resource estimate to be published by the end of 2026.
Brazilian Rare Earths Managing Director Bernardo da Veiga said:
Monte Alto continues to deliver the two outcomes that matter most for future resource growth: exceptional high grade mineralisation beyond the margins of the existing model and stronger geological continuity within the deposit. The compelling step-out drill results delivered repeatable high grades across several growth fronts, and the infill program has returned both ultra-high-grade assays and broad mineralised envelopes. The strategic significance is clear. The current Monte Alto production case is based only on drilling available to 22 February 2026. Since then, our team has successfully expanded the interpreted mineralised envelope volume to the south and east/down dip, while continuing to deliver ultra-high grades and advancing the open northern corridor. The additional scale immediately strengthens the Project's value proposition and, subject to conversion into Mineral Resources, could create substantial value through mine-life extension or increased annual production.
Shares looking cheap
Canaccord Genuity said the drilling results provided strong support for further resource growth at Monte Alto.
They added:
This has positive implications for project development plans through mine life extensions/increased production rates.
The broker has a price target on Brazilian Rare Earths shares of $8.70 compared to $4.14 at the time of writing.
The company is valued at $1.18 billion.
