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

Power Minerals Delivers Exceptional Rare Earth Grades From First Drill Hole at Morro do Ferro

Power Minerals (ASX: PNN | OTCQB: PEIMF) has reported results from the first drill hole of its maiden drilling programme at the Morro do Ferro Project in southern Minas Gerais, Brazil. The Power Minerals Morro do Ferro rare earth drill results confirm that hole MFSR-051 returned 116 metres at 4.78% Total Rare Earth Oxides (TREO) from surface, including a high-grade zone of 31 metres at 10.0% TREO and 1.58% Magnet Rare Earth Oxides (MREO) from 14 metres depth.

A standout two-metre interval from 37 metres recorded 18.12% TREO, a grade the company describes as among the highest reported globally for this style of mineralisation. Furthermore, the hole also intersected gallium mineralisation persisting to the end of the hole, a development that could add a further critical mineral dimension to the project.

"We are delighted to announce the initial results from our first drilling programme at the Morro do Ferro Project. These outstanding results reinforce our confidence in the Project as we continue drilling with two shifts currently in operation, and an additional rig set to commence," said Alistair Stephens, Chief Executive Officer of Power Minerals.

Breaking Down the Headline Numbers

The intercepts from MFSR-051 demonstrate continuity from surface across broad widths, a factor with significant implications for future development economics.

According to the company, all intercepts are weighted averages by downhole distance, with no upper or lower grade cuts applied. Results are derived from half-core samples rather than grab samples, consequently supporting their overall reliability.

The strongest individual magnet rare earth readings over two-metre intervals include praseodymium oxide (Pr₆O₁₁) at 1.0%, neodymium trioxide (Nd₂O₃) at 2.55%, dysprosium trioxide (Dy₂O₃) at 986 ppm, and terbium oxide (Tb₄O₇) at 196 ppm.

Across the 31-metre high-grade zone from 14 metres, weighted average grades were reported at 4,079 ppm Pr₆O₁₁, 11,228 ppm Nd₂O₃, 432 ppm Dy₂O₃ and 79 ppm Tb₄O₇.

Why MREO Is the Figure Investors Should Focus On

MREO, or Magnet Rare Earth Oxides, refers to the four rare earth elements used in permanent magnet production: neodymium, praseodymium, dysprosium and terbium. These elements underpin electric vehicle motors, wind turbine generators, robotics and defence applications.

TREO measures the total rare earth content in a rock sample, while MREO isolates the subset carrying the highest commercial value. For instance, cerium and lanthanum, both common rare earth elements, carry substantially lower market value than neodymium or dysprosium.

According to Power Minerals' analysis of its geochemical database, approximately 40% of the non-cerium rare earth inventory at Morro do Ferro comprises magnet rare earth elements neodymium, praseodymium, dysprosium, terbium and holmium.

The company states that neodymium, praseodymium, dysprosium and terbium together account for approximately 98% of contained rare earth value within the non-cerium inventory, based on current pricing assumptions.

Key Terms Explained

An Unexpected Result: High-Grade Gallium to End of Hole

The announcement also details the discovery of gallium mineralisation persisting from 122 metres to the end of hole at 210.9 metres within MFSR-051. Gallium is a critical mineral used in semiconductor manufacturing, defence systems and telecommunications infrastructure, and its presence at Morro do Ferro was not previously confirmed.

Standard gallium analysis was not possible across the upper high-grade rare earth intervals due to interference from elevated cerium levels, a limitation flagged by the testing laboratory. The company has noted this issue and intends to pursue further analysis.

According to the announcement, the 13 reported values show a consistent pattern across the lower weathered zone, and Power Minerals has stated it plans to continue investigating the gallium opportunity as drilling advances.

What Has Been Confirmed and What Comes Next

MFSR-051 has extended known high-grade mineralisation from a previous depth of 71 metres to 116 metres downhole, with total hole depth reaching 210.9 metres. The company reported 96.2% core recovery across the hole, described as a strong result for this style of mineralisation. In addition, continuous gyroscopic downhole surveys have confirmed all completed holes remain within planned tolerances.

According to the update, the programme's near-term activities include:

1. Drilling of the fourth hole in the programme is currently underway
2. A second drill rig has arrived on site and is scheduled to commence imminently
3. Two additional holes, MFSR-052 and MFSR-053, have been completed and are awaiting laboratory assay results
4. The full programme is planned to comprise approximately 25 drill holes totalling around 4,000 metres of diamond core, together with 800 metres of larger-diameter PQ core for metallurgical testwork
5. Drilling is expected to continue through to December 2026 if required
6. A maiden Mineral Resource Estimate is currently anticipated before the end of 2026, incorporating all drilling results with the existing geochemical database

The Investment Thesis in Focus

Several factors from this announcement carry potential relevance for investors evaluating the project's development path.

Grade and Continuity From Surface

Mineralisation beginning at surface and sustaining high grades across broad intervals may reduce the complexity typically associated with future mine planning, according to the company's characterisation of the results. This is a particularly notable characteristic within the broader rare earth sector.

A Magnet-Focused Rare Earth Profile

With approximately 98% of contained rare earth value in the non-cerium inventory attributed to the four magnet rare earth elements, based on current pricing assumptions, the project's composition differs markedly from deposits weighted toward lower-value light rare earths.

Favourable Mineralogy

Initial mineralogical studies indicate that bastnäsite-rich mineralisation hosts the majority of high-value magnet rare earth elements at Morro do Ferro. Bastnäsite is described by the company as one of the more commercially amenable rare earth minerals to process, which is an important consideration for downstream economics.

Gallium as a Potential Co-Product

Consistent gallium grades across the lower portion of MFSR-051, averaging 51.7 ppm with a peak of 62.4 ppm, introduce a possible additional revenue stream, however this remains subject to further testwork and analysis.

Tenure and Infrastructure

The project sits within a Manifesto de Mina mining permit, described in the announcement as a real property right with no expiry date, subject to ongoing tax obligations, and includes both surface and mineral rights.

The site is located approximately 14 kilometres from Poços de Caldas, 5 kilometres from a sealed highway, and 1.5 kilometres from high-voltage transmission infrastructure.

A Defined Near-Term Catalyst

The maiden Mineral Resource Estimate, targeted before the end of 2026, is set to provide a formal, JORC-compliant quantification of the deposit based on drilling completed to date. This represents a significant upcoming milestone for the project.

Why Morro do Ferro Warrants Continued Monitoring

The rare earth sector includes numerous projects reporting grades weighted toward lower-value light rare earth elements. However, the Power Minerals Morro do Ferro rare earth drill results from the first hole of the maiden programme have returned magnet rare earth grades that the company characterises as ranking among the highest reported globally for this style of deposit.

Mineralisation commencing at surface, established infrastructure, and secured tenure combine with a defined pathway toward a maiden resource estimate. Furthermore, the addition of gallium mineralisation broadly extends the project's critical minerals profile, subject to further analysis and testing.

With two drill rigs now in operation, further assay results pending from completed holes, and a maiden resource estimate targeted before year-end, the Power Minerals Morro do Ferro rare earth drill results continue to present a series of near-dated milestones for investors to track.

"Power Minerals has reported first-hole drilling results from Morro do Ferro that include some of the highest magnet rare earth grades disclosed in recent exploration announcements. With a maiden Mineral Resource Estimate targeted before the end of 2026, two rigs now drilling, and gallium mineralisation adding a further dimension to the project, a defined sequence of near-term catalysts lies ahead."

Want to Know More About Power Minerals and the Morro do Ferro Project?

With first-hole drilling results delivering some of the highest magnet rare earth grades reported globally for this style of mineralisation, a maiden Mineral Resource Estimate targeted before the end of 2026, two rigs now turning, and gallium mineralisation adding a further critical minerals dimension to the project, Power Minerals (ASX: PNN | OTCQB: PEIMF) is building a compelling investment case at Morro do Ferro. Investors looking to learn more about the company and its flagship Brazilian rare earth project can visit www.powerminerals.com.au for the latest updates and announcements.