Power Minerals Ltd (ASX:PNN) has reported high-grade magnetic rare earth oxide (MREO) results from its due diligence work at the Morro do Ferro project in Brazil, with multiple drillholes confirming strong near-surface mineralisation and consistent high-value rare earth concentrations.
The standout result came from hole MFSR-47, which returned 2 metres at 35,332ppm (3.53%) MREO from 9 metres depth, including high concentrations of neodymium and praseodymium, key inputs for permanent magnets. The company said these elements are particularly important as MREOs account for more than 80% of rare earth market value.
Location plan of the two cross sections, which are 250 metres apart.
Broad, high-grade intercepts were also recorded across several holes, including 100.44 metres at 9,485ppm (0.95%) MREO from surface in MFSR-10, with a higher-grade zone of 19.3 metres at 22,541ppm (2.25%) from 25 metres. Hole MFSR-04 returned 100.2 metres at 6,103ppm, including 21.35 metres at 14,438ppm, while MFSR-20 delivered 60.6 metres at 13,129ppm from surface.
Additional drilling continues to demonstrate scale and grade continuity, with results such as 60.85 metres at 14,912ppm from MFSR-35 and 70.7 metres at 9,082ppm from MFSR-32. Importantly, mineralisation begins at surface in many holes, supporting the potential for low strip ratios in any future development scenario.
Cross-section 370S looking northwest. Shallow (≤10m) auger holes are not shown for clarity. All weighted average intercepts are for MREO (Nd-Pr-Dy-Tb oxides) only. MREO values over 3,000ppm (yellow and above) are considered significant. Mineralisation is considered open at depth.
“The Morro do Ferro project represents a remarkable opportunity to expand our understanding of the resource capabilities within the Poços de Caldas Alkaline Complex, a renowned hotspot for rare earth elements in Brazil. With the exceptionally high concentrations identified at this site, Power Minerals stands poised to assert itself as a frontrunner in the rare-earth sector," Power Minerals managing director Mena Habib said.
"Our enthusiasm for exploring the full potential of the Morro do Ferro Project is palpable, as we aim to lead in this rapidly evolving industry. Our recent due diligence visit to the Morro do Ferro site unveiled promising insights that enhance our confidence in the viability of this venture. The main deposit is strategically located along the crest of a steep hill, characterised by over 100 meters of topographic relief. This unique positioning not only provides significant geological advantages but also simplifies the proposed open-cut operation's design, enhancing operational efficiency and driving down costs, aligning with our commitment to sustainable mining practices."
Consistent high-grade mineralisation supports scale potential
Power’s review of historical drilling data highlights strong consistency across the deposit, with only around 12% of analysed samples returning less than 500ppm MREO. Even these lower-grade intervals remain above typical benchmarks seen in other rare earth projects.
Comparisons with other deposits reinforce the significance of the results. The company noted that inferred resources at projects such as Caldeira and Jupiter report MREO grades of 631ppm and 383ppm respectively, substantially below many of the intercepts recorded at Morro do Ferro.
Shallow auger drilling has also confirmed high-grade mineralisation near surface, including 10 metres at 17,473ppm and 10 metres at 11,561ppm MREO, further supporting the project’s potential for accessible mineralisation.
Geological interpretation suggests the system remains open at depth and along strike, with drilling to date only partially defining the extent of the mineralised zone. The presence of strong radiometric and magnetic signatures across the broader zone also indicates potential for additional discoveries beyond the current footprint.
"As we advance into the next phase of this project, I am invigorated by the potential that Morro do Ferro holds. The combination of its advantageous topography and our strategic approach ensures that we are well-equipped to maximise the benefits of this endeavour. With careful planning and execution, I am confident that we will achieve exceptional results that will solidify Power Minerals’ position in the rare earth elements market.
"The Morro do Ferro Project not only offers significant resource potential but also exemplifies our dedication to sustainable and efficient mining. I look forward to collaborating with our team and stakeholders to bring this project to fruition, harnessing the opportunities that lie ahead while consistently pushing the boundaries of what's possible in the rare-earth sector,” Habib said.