Power Minerals Advances Morro do Ferro Drilling with A$1.7M Strategic Backing

Maiden Drilling Underway at High-Grade Rare Earths Project

Power Minerals Limited (ASX:PNN) has kicked off its maiden diamond drilling campaign at the Morro do Ferro Rare Earths Project in southern Minas Gerais, Brazil. The campaign aims to expand the footprint of high-grade rare earth mineralisation and deepen geological understanding within this strategically located asset in the Poços de Caldas alkaline complex.

The program includes 4,000 metres of NQ3/HQ3 diamond core drilling targeting extensions of magnet rare earth oxides (MREO) and total rare earth oxides (TREO), alongside 800 metres of larger diameter PQ core drilling to secure representative samples for metallurgical testing. This dual approach underpins Power’s strategy to rapidly advance the project’s development potential.

Early Drilling Progress and Assay Timeline

So far, three drill holes have been completed, with depths ranging from 173 to 211 metres. Core recovery has been excellent, averaging 94.5% over nearly 488 metres. Samples from the initial holes have been dispatched to SGS Geosol laboratory, with assay results expected within two to three weeks. The company plans to accelerate drilling with the arrival of a second rig shortly, aiming to maintain a steady flow of news and technical updates in the coming months.

The drilling is designed to test and extend previous high-grade intercepts, including notable historic results such as 60.85 metres at 1.49% MREO and 70.9 metres at 1.30% MREO from surface. These grades are significant given the growing global demand for magnet rare earth elements driven by technologies like AI, robotics, and electrification.

Mineralogical Characterisation Targets Premium Rare Earths

Alongside drilling, Power has initiated a mineralogical characterisation program focused on identifying host minerals for valuable rare earths such as neodymium, praseodymium, dysprosium, and terbium. Early findings suggest bastnäsite-rich mineralisation dominates the high-value magnet rare earth content, potentially enabling selective reduction of lower-value cerium and gangue minerals during processing.

This selective beneficiation could differentiate Morro do Ferro by supporting a premium magnet rare-earth concentrate, improving project economics and reducing capital requirements. The program’s results will feed into future resource statements, metallurgical studies, and environmental approvals, positioning the project as a standout in the global rare earth sector.

Strategic Investment and Board Appointment Bolster Development

Power Minerals secured a A$1.7 million strategic investment from a well-known international resources fund via a share placement at A$0.145 per share, accompanied by free attaching options exercisable at A$0.10. The funds are earmarked to fast-track the Morro do Ferro drilling and metallurgical test work.

In a move to strengthen its commercial and US market presence, Power appointed Israel “Izzy” Benchemhoun as a Non-Executive Director. Based in New York, Benchemhoun brings extensive experience in private enterprises, capital markets, and strategic growth initiatives, expected to support investor relations and the company’s South American project advancement.

Exploration Activities Continue at Santa Anna and Salta Projects

While Morro do Ferro takes centre stage, Power is progressing exploration at its Santa Anna niobium project in Brazil through a systematic soil sampling campaign across underexplored peripheral zones. Additionally, strategic planning for passive seismic stations is underway at the Salta lithium project in Argentina to enhance freshwater target modelling ahead of drilling.

Power ended the quarter with a healthy cash balance of A$7.5 million, supporting ongoing exploration and development activities across its portfolio.