Power Minerals (ASX:PNN) reports progress at Morro do Ferro drilling program

Power Minerals has provided an operational update on its maiden diamond drilling program at the Morro do Ferro Rare Earths Project in Minas Gerais, Brazil.

The company has completed the first two drillholes, commenced a third, dispatched its first samples for laboratory analysis and completed a project wide drone geophysical survey, with results from the drilling program intended to support a JORC 2012 Mineral Resource Estimate for the project later this year.

Highlights

The first two drillholes were drilled at the same dip and azimuth as historical drilling but extended to significantly greater depths, while the third drillhole has been designed as a vertical hole.

According to the company, multiple drillholes with varying orientations are intended to ensure the geological, mineralogical and resource models are comprehensive and reliable.

The company said the program is designed to determine the margins of the deposit and that drillholes will continue beyond the expected mineralisation to provide maximum confidence in the Mineral Resource model.

Power Minerals reported core recovery of 487.8m at an average recovery of 94.5%.

Samples from the first two drillholes have been cut and dispatched to SGS Geosol for detailed geochemical analysis, with continuous sampling completed over the entire cored length.

The company expects laboratory assay results within 3 to 4 weeks and said results will be released progressively once received and verified.

Initial delays associated with establishing a reliable water supply near the hilltop drill sites have been resolved, according to the company, and a second drill rig is scheduled to arrive shortly.

HQ triple tube drilling was selected to maximise core recovery and generate analytical, geological and metallurgical data.

According to the company, differential GPS is being used to determine drillhole azimuths because of magnetic interference from near surface magnetite dykes, while continuous gyroscopic downhole surveys have confirmed the completed drillholes remain within planned tolerances, with only routine, very minor lift and slight curvature observed.

Power Minerals also completed a high resolution drone based geophysical survey across the entire Manifestos de Mina area.

The survey collected a digital elevation model, high resolution aerial photography, and magnetic and radiometric datasets.

According to the company, the digital elevation model will serve as a crucial upper surface constraint for the Mineral Resource model, while the magnetic and radiometric data will assist in refining the geometry of the Morro do Ferro deposit and identifying potential apophyses or satellite targets.

Power Minerals Chief Executive Officer Alistair Stephens said the drilling program had progressed well, stating,

“The core recovery has been outstanding, and we've sent samples to SGS Geosol for analysis, with assay results anticipated in the next two to three weeks. With a second rig on its way, we are strategically positioned to continue drilling through December if needed, paving the way for a JORC-compliant Mineral Resource.”

The company also provided an update on the Santa Anna Project in Goiás State, Brazil, where it plans to commence a systematic soil sampling program during the current quarter.

According to the company, the work is intended to assist targeting in areas surrounding the centre of the carbonatite complex that have not yet been tested, with results to be released as they become available.

Power Minerals said it will continue checking and verifying field measurements and downhole data as drilling progresses, with laboratory geochemical assays to be released progressively once available.

According to the company, results from the drilling program, together with laboratory geochemical assays, will be used to define a JORC 2012 Mineral Resource Estimate for the Morro do Ferro Project, which is expected later this year.