Power Minerals Launches Maiden Drilling at Morro do Ferro Rare Earths Project

Drilling Campaign Targets Resource Growth and Metallurgical Insights

Power Minerals Limited (ASX:PNN) has initiated its first diamond drilling program at the Morro do Ferro Rare Earths Project (MDF Project) in southern Minas Gerais, Brazil, following the acquisition finalised last month. The campaign encompasses approximately 3,000 metres of diamond core drilling aimed at deepening and extending known high-grade Total Rare Earth Oxides (TREO) and Magnetic Rare Earth Oxides (MREO) mineralisation, alongside 800 metres of larger diameter core drilling to supply samples for metallurgical test work.

The MDF Project is strategically positioned within the Poços de Caldas alkaline complex, an emerging global rare earth hub. The project’s unique 'Manifesto de Mina' mining licence grants direct land ownership, streamlining exploration by reducing permitting complexities and enabling ground-disturbing activities subject to environmental approvals.

High-Grade Assays Underpin Ambitious Drilling Plans

Power Minerals’ recent due diligence confirmed exceptional grades at Morro do Ferro, with drillhole assays including 60.85 metres at 8.92% TREO and ultra-high-grade MREO samples exceeding 3% over two-metre intervals. Verification samples from the previous owner, Mineração Terras Raras, returned TREO values up to 14.03% and MREO concentrations of 2.64%, reinforcing the project’s robust mineralisation profile. These results build on the company’s earlier verification assays confirm up to 14.03% TREO and underpin the upcoming drilling campaign designed to expand the mineralised footprint both along strike and at depth.

Chief Executive Officer Alistair Stephens emphasised the campaign’s role in advancing the project towards a maiden Mineral Resource Estimate (MRE), noting the drilling will provide critical data to refine the mineralogy and support metallurgical optimisation. The campaign is expected to run for up to three months with progressive assay results anticipated starting June 2026.

Acquisition Completes Strategic Entry into Rare Earths

Power Minerals secured 100% ownership of the MDF Project through acquisition of Mineração Terras Raras, following a thorough due diligence process that validated the project’s substantial potential. The acquisition, completed in April, marks a significant step in Power’s expansion into high-grade rare earth assets, complementing its existing portfolio that includes lithium brine resources in Argentina and other critical minerals in Brazil and beyond. The strategic importance of Morro do Ferro within the Poços de Caldas complex aligns with Power’s ambition to become a key player in the global rare earths market, particularly given the project’s exceptional grades and streamlined permitting environment. This follows the company’s strategic Morro do Ferro acquisition announcement last month.

Temporary Shift of Focus from Santa Anna Niobium Project

In a bid to accelerate progress at Morro do Ferro, Power Minerals has temporarily suspended drilling activities at its Santa Anna Niobium Project. The company will focus resources on fast-tracking the rare earths project, while continuing landholder negotiations to unlock new target areas at Santa Anna. This prioritisation reflects the high-grade potential and strategic value of Morro do Ferro within the company’s portfolio.