Power Minerals Confirms World-Class Rare Earth Grades at Morro do Ferro

Power Minerals Confirms World-Class REE Grades at Morro do Ferro, Setting the Stage for a Major Drilling Campaign

Power Minerals Limited (ASX: PNN | OTCQB: PEIMF) has delivered a significant technical milestone, with Power Minerals Morro do Ferro rare earth verification results in Brazil confirming exceptionally high rare earth grades — including Total Rare Earth Oxide (TREO) values of up to 14.03% and Magnet Rare Earth Oxide (MREO) concentrations as high as 26,418 ppm (2.64% of whole rock). These figures place Morro do Ferro among the highest-grade rare earth deposits reported globally.

The verification programme was conducted as part of Power's due diligence for its acquisition of the MDF Project, completed through a Definitive Agreement with Mineração Terras Raras (MTR). With the acquisition now formally executed and historical data materially validated, the company is moving promptly into a deep diamond core, RC, and aircore drilling campaign designed to expand the deposit and advance toward a maiden Mineral Resource Estimate.

What the Verification Results Actually Mean

The six duplicate samples were drawn from three separate drillholes — MFSR-12, MFSR-18, and MFSR-44 — selected to span a wide range of previously reported grades and depths. Crucially, all samples were submitted blind to SGS Geosol, an independent ISO 9001:2015 and ISO 14001:2015 certified laboratory in Vespasiano, Minas Gerais, Brazil, and were batched alongside unrelated Power Minerals drill samples to eliminate any potential for identification or bias.

The results returned in close correlation with the historical assay database, confirming that the prior owner's drilling and sampling programme was conducted with integrity. All quality control measures — including high-grade (OREAS 465b) and low-grade (OREAS 22i) certified reference materials, plus four blind duplicates — fell within acceptable laboratory limits.

The table below summarises the key verification results against the original MTR samples:

The correlation across all six pairs is tight, with no material divergence from the original assays. This is precisely the outcome required to anchor a future Mineral Resource Estimate on solid technical foundations.

"Six independent duplicate samples, taken from three separate drillholes and submitted blind to the laboratory, have returned results in close correlation with the historical assays — including TREO values up to 14.03% and MREO concentrations up to 26,418 ppm — or 2.64% of whole rock. Combined with last week's execution of the Definitive Agreement with Mineração Terras Raras, today's results materially de-risk the technical case for Morro do Ferro and reinforce its position as one of the highest-grade rare earth assets in the world's pre-eminent REE province at Poços de Caldas."

— Alistair Stephens, CEO, Power Minerals Limited

Understanding the Key Metrics: TREO and MREO Explained

For investors less familiar with rare earth exploration, two terms dominate this announcement and are worth understanding clearly.

What Is TREO — Total Rare Earth Oxides?

This is the sum of all rare earth element oxides present in the rock, expressed as a percentage of whole rock or in parts per million (ppm). It is the broadest measure of rare earth content. A TREO of 14.03% — as recorded at MFSR-44 — means that more than 1 in every 7 grams of rock consists of rare earth oxide material.

For reference, most rare earth deposits considered economically viable operate in the range of 0.5% to 2% TREO, making Morro do Ferro's grades extraordinary.

What Is MREO — Magnet Rare Earth Oxides?

This subset specifically measures neodymium (Nd₂O₃), praseodymium (Pr₆O₁₁), terbium (Tb₄O₇), and dysprosium (Dy₂O₃). These four elements are the critical inputs for the permanent magnets used in electric vehicle motors, wind turbine generators, and a wide array of defence applications.

MREO grades are arguably the most commercially significant metric in the rare earth sector today, given concentrated demand for these specific elements. Results at MDF of up to 26,418 ppm (2.64% of whole rock) MREO are particularly noteworthy.

Why Does This Matter to Investors?

High MREO content is not just about grade — it directly speaks to the commercial relevance of the deposit in the context of the energy transition and advanced manufacturing supply chains. A deposit rich in magnet rare earths is targeting the most supply-constrained and highest-value segment of the rare earth market.

Quick Glossary

The Deposit Setting: Why Poços de Caldas Matters

The Morro do Ferro Project sits within the Poços de Caldas Alkaline Complex in southern Minas Gerais, Brazil — a large, circular alkaline intrusion approximately 800 km² in area, located roughly 200 km north of São Paulo. Poços de Caldas is one of the world's most significant alkaline complexes, known for hosting multiple critical mineral occurrences.

The deposit itself is hosted within hydrothermally altered country rocks overlain by deep weathering cover, with REE mineralisation associated with the cryptocrystalline minerals bastnäsite and cerianite, along with minor monazite. The weathering profile commonly extends to depths exceeding 150 metres, and the dominant saprolite material — over 80% of the drill core — lends itself to simpler processing pathways compared with hard-rock analogues.

The MDF tenement (ANM 005.444/1946) covers 300.72 hectares and holds a unique status as a 'Manifesto de Mina' — a real property title conferring both surface and mineral rights with no expiration date, provided applicable taxes are maintained. This tenure structure is a meaningful distinction from standard mining concessions, offering long-term security over the asset.

Drilling Campaign: The Next Major Value Catalyst

With the acquisition of MDF now formalised and the historical database validated, Power Minerals is preparing to mobilise into an exploration drilling programme that represents the next meaningful step toward establishing a formal resource at the project. The planned programme has three components:

1. Deep diamond core drilling (>200 m depth) targeting the high-grade core of the main deposit, where mineralisation remains open at depth and along strike
2. Reverse circulation (RC) drilling on the main deposit to complement core drilling and provide broader sample coverage
3. Aircore drilling to test the wide, underexplored margins of the deposit, where historical traverse spacings of 250 to 480 metres in shallow auger drilling have left substantial ground inadequately tested

The deposit's mineralisation is confirmed open both at depth and along strike, representing material exploration upside beyond what the existing drillhole database has already revealed. Furthermore, the goal of this campaign is to generate sufficient data to underpin a maiden Mineral Resource Estimate.

Upcoming Milestones

The Investment Case: High Grade, Validated Data, and a Clear Path Forward

Morro do Ferro's verification results crystallise several elements of a compelling investment thesis for Power Minerals. Consequently, investors tracking the critical minerals space should note the following key strengths.

1. Grade Is Genuinely Exceptional

TREO grades of up to 14.03% and MREO grades of up to 26,418 ppm sit well above the threshold typically associated with economically viable rare earth deposits. The M/TREO ratios — reaching 31.8% in drillhole MFSR-18 — indicate a meaningful proportion of the most commercially valuable magnet rare earth elements within the total rare earth package.

2. The Historical Database Is Now De-Risked

One of the most significant risks associated with acquiring a project with historical drilling data is the integrity of that data. The blind submission of six verification samples to an independent, certified laboratory, returning results in tight correlation with prior assays, directly addresses this concern. The data underpinning the exploration plan has now been independently confirmed.

3. The Acquisition Is Complete

With the Definitive Agreement with MTR executed, the pathway to ownership of a high-grade rare earth asset in a proven mineralised province is now formalised. The company can proceed with its exploration programmes without the contingencies that existed prior to deal completion.

4. The Deposit Has Significant Expansion Potential

The current drillhole database, while robust in the high-grade core, leaves substantial ground along strike and at depth untested. The upcoming drilling campaign is directly designed to test this upside.

5. Favourable Deposit Characteristics

The deep saprolite weathering profile — averaging a dry bulk density of 1.68 t/m³ across 406 measurements — and the presence of bastnäsite and cerianite as the primary REE-bearing minerals are characteristics that have historically supported more accessible processing approaches relative to hard-rock REE deposits.

Why Investors Should Watch Power Minerals Closely

Power Minerals is advancing a rare earth asset that combines the two characteristics most sought after in exploration-stage critical mineral projects: exceptional grade and a validated technical foundation. The confirmation that TREO values exceed 14% and MREO concentrations surpass 2.6% of whole rock at the same sample intervals, verified independently and blind, is a technically meaningful outcome.

Indeed, this materially strengthens the company's position in the global rare earth landscape. The Power Minerals Morro do Ferro rare earth verification results in Brazil place the project within one of the world's most mineralised alkaline provinces, with perpetual tenement rights and no expiration date.

The deposit is open at depth and along strike, a substantial drilling campaign is being mobilised, and the data upon which that campaign is built has now been independently verified. Beyond MDF, Power Minerals holds lithium brine resources in Argentina and a broader portfolio of critical mineral assets across Brazil, Australia, and Canada, providing additional optionality for investors as the company advances its flagship rare earth project.

"Power Minerals has independently confirmed that Morro do Ferro ranks among the highest-grade rare earth projects in the world, with TREO values up to 14.03% and MREO concentrations up to 2.64% of whole rock validated through a rigorous blind verification programme. With the acquisition formally executed and a deep drilling campaign imminent, the next 12 months present a series of material catalysts — centred on expanding the deposit footprint and progressing toward a maiden Mineral Resource Estimate — that warrant close attention from investors positioned in the critical minerals space."

Ready to Learn More About Power Minerals' World-Class Rare Earth Project?

Power Minerals (ASX: PNN | OTCQB: PEIMF) has independently verified extraordinary rare earth grades at Morro do Ferro, with a major drilling campaign now being mobilised and a maiden Mineral Resource Estimate firmly in its sights. With the acquisition formally executed, historical data de-risked, and material catalysts on the horizon, investors seeking exposure to one of the world's highest-grade rare earth assets should explore the opportunity further. Visit www.powerminerals.com.au to learn more about the company, the MDF Project, and its broader critical minerals portfolio.