Power Minerals Advances Niobio Drilling, Abandons Tântalo Acquisition Amid Access Concerns
Power Minerals has made significant progress with its maiden diamond drilling program at the Niobio Project in Brazil, while deciding not to proceed with the Tântalo Project acquisition due to access issues. The company also settled outstanding debts with Ultra Lithium, positioning itself for focused growth in South America.
- Maiden diamond drilling program underway at Niobio Project with four holes completed
- All drill holes intercepted targeted pegmatites consistent with exploration model
- Decision not to acquire Tântalo Project due to potential access and licensing issues
- Settlement agreement reached with Ultra Lithium to recover convertible loan amounts
- Appointment of Country Manager to drive Brazilian growth strategy
Exploration Momentum at Niobio Project
Power Minerals Limited (ASX: PNN) has reported encouraging progress in its exploration activities at the Niobio Niobium, Rare Earth Elements (REE), and Lithium Project in Brazil. The company commenced a first-pass diamond drilling program in December 2024, designed to test priority pegmatite targets identified through prior surface sampling and a LiDAR survey. To date, four drill holes totaling 356.15 metres have been completed, all intercepting pegmatite formations consistent with the company’s geological model.
The drilling program, which will extend up to 800 metres, aims to provide detailed geological and geochemical data, including stratigraphic information to better understand the structure, lithology, and true thickness of the pegmatite bodies. The use of diamond core drilling, as opposed to reverse circulation methods, is expected to yield higher quality samples for analysis. Results from this program are anticipated in the first quarter of 2025 and will guide subsequent exploration phases.
Strategic Withdrawal from Tântalo Project
In parallel, Power Minerals has decided not to proceed with the acquisition of the Tântalo Niobium, Tantalum, and REE Project in Brazil after completing due diligence. Despite promising initial sampling results showing high-grade niobium and tantalum, the company identified potential access and licensing challenges that could delay or complicate exploration activities. This decision reflects a strategic focus on advancing the Niobio Project, where exploration progress is more immediate and promising.
Corporate Developments and Financial Position
To support its Brazilian operations, Power Minerals appointed Leandro Guedes Bertossi as Country Manager, tasked with strengthening local stakeholder relationships and overseeing project execution. On the financial front, the company reached a settlement agreement with Ultra Lithium Inc. to recover outstanding amounts under a convertible loan agreement. This includes a cash repayment of A$300,000 and the transfer of Canadian lithium mineral claims, enhancing Power Minerals’ asset portfolio.
As at 31 December 2024, Power Minerals held a cash balance of A$576,000 and has access to a A$1 million unsecured loan facility extended by Managing Director Mena Habib, now due in July 2025. The company’s expenditure during the quarter was focused primarily on exploration activities in Brazil and Argentina, with total exploration spend of approximately A$540,000.
Looking Ahead
The upcoming release of drilling results from the Niobio Project will be a critical milestone for Power Minerals, potentially validating its exploration model and informing future resource development strategies. Meanwhile, the company’s decision to forgo the Tântalo acquisition underscores a disciplined approach to project selection amid regulatory and operational challenges. Investors will be watching closely how these developments translate into tangible value creation in the coming months.
Bottom Line?
Power Minerals’ focused drilling at Niobio and strategic portfolio decisions set the stage for a pivotal 2025 exploration year.
Questions in the middle?
- What will the assay results from the Niobio diamond drilling reveal about resource potential?
- How will Power Minerals leverage the newly acquired Canadian lithium claims from Ultra Lithium?
- What alternative advanced projects is the company considering to complement its South American assets?
