Power Minerals (ASX:PNN) reports high-grade MREO results at Morro do Ferro Project in Brazil

Power Minerals has reported results from its ongoing technical due diligence over the Morro do Ferro Rare Earth Elements Project in Minas Gerais, Brazil, highlighting high concentrations of magnetic rare earth oxides identified in historical drilling.

The work forms part of the company’s assessment following the Binding Letter of Intent executed on 5 March 2026 with Mineração Terras Raras for the potential acquisition of the project.

Highlights

• MFSR-47 returned 35,332ppm MREO over 2m at 9m to 11m
• MFSR-10 delivered 100.44m at 9,485ppm MREO from surface, including 19.3m at 22,541ppm
• MFSR-04 returned 100.2m at 6,103ppm MREO from surface, including 21.35m at 14,438ppm
• MFSR-20 delivered 60.6m at 13,129ppm MREO from surface
• 65 of 555 analysed samples returned below 500ppm MREO, representing 12% of results
• Project located within the Poços de Caldas Alkaline Complex in Brazil

The due diligence review has focused on magnetic rare earth oxides comprising Neodymium, Praseodymium, Dysprosium and Terbium, which according to the announcement account for more than 80% of the total rare earth market value.

Drilling results reported from previous exploration programmes show continuous mineralisation from surface to end of hole across multiple drillholes.

Reported weighted average intercepts include MFSR-35 at 60.85m averaging 14,912ppm MREO and MFSR-44 at 70.9m averaging 12,958ppm MREO. No minimum or maximum cut-off was applied to the reported intervals.

The announcement states that the lowest recorded MREO value within drillhole MFSR-10 was 976ppm, noted as higher than many total rare earth oxide results seen in other deposits, with 65 of 555 individual samples returning MREO values below 500ppm.

Comparative data provided in the release references other projects, including the Caldeira Project with an inferred grade of 631ppm MREO, the Jupiter deposit with 383ppm MREO, and the Wolverine Open Cut deposit with measured, indicated and inferred grades of 1260ppm, 1040ppm and 510ppm MREO respectively, each reported following total rare earth oxide cut-offs.

The Morro do Ferro Project is located within the Poços de Caldas Alkaline Complex, which the announcement describes as a well-established rare earth province in Brazil.

The deposit remains open at depth and along strike, with previous drilling only partially constraining the extent of mineralisation.

Site observations from the company’s due diligence visit indicate that the main deposit is situated along a top-sloping crest of a steep hill with more than 100m of topographic relief.

The project also holds a “manifesto de mina” title, providing direct ownership rights over the land and enabling ground-disturbing exploration activities, subject to environmental approvals.

Power Minerals Managing Director Mena Habib said,

“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.”

The company stated that it will seek to address the existing auger drilling spacing of 250m to 480m by infilling and extending sampling across the project area.

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