Power Minerals (ASX:PNN) advances Morro do Ferro REO Project toward premium Magnet Rare Earth Development

Power Minerals has commenced a priority mineralogical characterisation program at its flagship Morro do Ferro Rare Earth Project in Minas Gerais, Brazil.

The program is designed to identify the host minerals of valuable rare earth elements, including neodymium, praseodymium, dysprosium and terbium, and to determine whether low value cerium and gangue minerals can be selectively removed during mining before downstream processing or during beneficiation.

According to the company, the study is expected to provide critical insights into future mining, metallurgical, environmental and process development studies.

Highlights

• Priority mineralogical characterisation program underway at Morro do Ferro, Brazil.
• Previous mineralogy studies identified bastnäsite and cerianite as two distinct species of rare earth mineralisation.
• Bastnäsite mineralisation is weighted towards high value magnet rare earths, with approximately 40% of the non cerium rare earth inventory comprising Nd, Pr, Tb, Dy and Ho.
• Analysis of the non cerium drill data using a >0.5% TREO cut off returned an average of 4,521ppm Nd₂O₃+Pr₆O₁₁, 31ppm Tb₄O₇ and 141ppm Dy₂O₃.
• Peak values of over 3% Nd₂O₃+Pr₆O₁₁, 250ppm Tb₄O₇ and 1,024ppm Dy₂O₃ were reported.
• Maiden drilling at Morro do Ferro is underway, with initial assays expected in July 2026.

Initial mineralogical work identified characteristics that may support the development of a premium magnet rare earth product focused on the highest value rare earth elements used in permanent magnets.

The studies indicate that bastnäsite rich mineralisation hosts the majority of the high value magnet rare earth elements within the MDF deposit.

Analysis of the current geochemical database shows that approximately 40% of the non cerium rare earth inventory comprises Nd, Pr, Dy, Tb and Ho.

Based on the pricing assumptions referenced in the announcement, Nd, Pr, Dy and Tb account for approximately 98% of the contained rare earth value within the non cerium rare earth inventory.

The mineralogical studies also indicate the potential to selectively reduce low value cerium through future mine planning and beneficiation strategies.

The company states that, if confirmed through ongoing studies, these characteristics could support the development of a premium magnet rare earth concentrate enriched in Nd, Pr, Dy and Tb while reducing the proportion of lower value cerium.

The mineralogy program is aimed at identifying potential pathways to simplify future process design, improve project economics and reduce development capital requirements.

Analysis of the Morro do Ferro drilling database comprising drillhole assays above a 0.5% TREO cut off grade identified the highest recorded terbium oxide assay of 249.9ppm Tb₄O₇ and the highest dysprosium oxide assay of 1,023.6ppm Dy₂O₃.

The highest combined Nd₂O₃+Pr₆O₁₁ assay recorded within the current drilling database is 33,750ppm, or 3.38% of whole rock, with multiple additional intervals containing more than 2.7% combined NdPr oxide.

The current mineralogical and drilling programs are designed to further define the distribution, continuity and mineralogical occurrence of these high value rare earth elements throughout the deposit and support future resource, metallurgical and development studies.

Power Minerals Chief Executive Officer Alistair Stephens said the mineralogical studies were highlighting strong exposure to Nd, Pr, Dy and Tb and the potential to reduce low value cerium through mine planning and beneficiation.

“MDF is demonstrating the characteristics of a premium magnet rare earth project, with mineralogical studies highlighting strong exposure to the high value magnet rare earths Nd, Pr, Dy and Tb and the potential to reduce low value cerium through mine planning and beneficiation.”

The current diamond drilling program is expected to significantly expand both the geological and mineralogical understanding of the project by yielding critical insights into the distribution of individual rare earth elements, including Nd, Pr, Dy and Tb.

Drill samples from the program are expected to provide a substantially larger dataset for future mineralogical and metallurgical investigations.

As the geological, geochemical and mineralogical databases continue to expand, the company expects to progressively improve confidence in future resource modelling, mine planning, beneficiation opportunities and future process development pathways.

Environmental studies designed to assist with the fast tracking of approvals have also commenced, while results from the priority mineralogical characterisation program are expected to be progressively incorporated into future resource, metallurgical, environmental and development studies as the program advances.

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