Power Minerals has reported 91 metres at 7.7% TREO from surface in a new Morro do Ferro drillhole, including 23.1 metres at 17.5% TREO. The result strengthens the case for continuity ahead of a maiden resource estimate, while a separate non-binding Salta lithium venture has been terminated.
- 91m at 7.7% TREO and 1.4% MREO from surface
- 23.1m at 17.5% TREO and 3.2% MREO from 13m
- 2m at 22.6% TREO ranks as Morro do Ferro’s second-highest sample
- Pending assays remain from MFSR-055 and MFSR-054
- Non-binding Salta lithium joint venture terminated
Morro do Ferro delivers another thick high-grade intersection
Power Minerals Limited (ASX:PNN) has produced one of its strongest Morro do Ferro results to date, with drillhole MFSR-055 intersecting 91 metres at 7.7% total rare earth oxides (TREO) and 1.4% magnet rare earth oxides (MREO) from surface. Inside that interval, 62 metres graded 11.1% TREO and 2.0% MREO, while a 23.1-metre section from 13 metres returned 17.5% TREO and 3.2% MREO.
The hole also delivered a two-metre sample at 22.6% TREO and 4.32% MREO from 25 metres, which Power says is the second-highest individual TREO sample recorded at the Brazilian project. The company’s highest remains a two-metre sample at 24.13% TREO from drillhole MFSR-044.
MFSR-055 was drilled between section lines to test whether the high-grade zone continued across the deposit, rather than simply adding another result on an established line. Power said the outcome improved its understanding of mineralisation continuity and supported the company’s Exploration Target model, which includes mineralisation extending at depth and towards the southeast.
Drilling is tightening the path to a maiden resource
The result adds to a sequence of broad near-surface intersections at Morro do Ferro, including the 119m MFSR-056 intercept reported earlier this month at 4.94% TREO. Power’s reported results from holes MFSR-051 to MFSR-056 have all included mineralisation from surface, although the widths are downhole measurements and may not represent true thickness.
On the results released so far, MFSR-055 ranks ahead of MFSR-054’s 88 metres at 6.33% TREO and MFSR-053’s 108.55 metres at 4.15% TREO on headline grade-width measures. The comparison remains preliminary: portions of MFSR-055 and MFSR-054 are still awaiting assays, while samples from holes MFSR-057 to MFSR-068 have been dispatched for laboratory analysis.
Power is using the ongoing drilling to improve the data density needed for a maiden JORC Mineral Resource estimate. The company has not yet reported a mineral resource for the deposit, and the current intersections remain exploration results. Drilling is continuing as access expands across the eucalyptus plantation, with assays expected to be released progressively.
Salta lithium partnership ends as Power reassesses options
Power also disclosed that its non-binding joint venture with Summit Explore Corporation, a subsidiary of Summit Nanotech Corporation, will not proceed. The company has terminated the proposed arrangement for developing its Salta Lithium Project in Argentina and said it is assessing other development options.
No financial consequences or replacement partner were disclosed. That leaves Morro do Ferro carrying the clearest near-term exploration momentum, but the next test is whether the continuing assays can convert impressive drill intersections into a coherent resource and, later, a workable development case.
Bottom Line?
The drilling is strengthening continuity at Morro do Ferro, but the investment case still depends on pending assays, resource definition and proof that high grades can translate into recoverable product.
Questions in the middle?
- How much will the pending upper and lower assays change the geometry and grade profile of MFSR-055?
- When will Power publish the maiden JORC resource, and how will it compare with the existing conceptual Exploration Target?
- Can Power find a credible development pathway or partner for Salta after ending the non-binding lithium venture?