Power Minerals Hits 88m at 6.33% Rare Earths as Maiden Resource Planning Begins
Key Takeaways
- Drillhole MFSR-054 returned 88m @ 6.33% TREO (including 1.19% MREO) from surface, with a peak interval of 20m @ 12.05% TREO — the highest-grade interval recorded at Morro do Ferro to date.
- The hole was oriented northeast, a direction never previously tested, and confirmed continuous REE mineralisation in that spatial dimension, expanding the deposit's known footprint.
- All four completed holes have ended in mineralisation without finding a deposit boundary, and results from MFSR-055 through MFSR-062 remain pending from SGS Geosol Brazil.
- Power Minerals has formally commenced planning for a maiden Mineral Resource Estimate, the next major de-risking milestone for the project, underpinned by a 25-hole, 4,000m diamond drilling program across two rigs.
- Gallium mineralisation has been confirmed extending to the northeast and at depth, with MFSR-054 returning 1.5m @ 49.8ppm Ga, though analytical method refinement is still in progress before gallium becomes a headline result.
Morro do Ferro delivers another exceptional intercept as Power Minerals eyes maiden resource
Power Minerals Limited (ASX: PNN | OTCQB: PEIMF) has announced a fourth consecutive high-grade rare earth intercept from its Morro do Ferro REE Project in southern Minas Gerais, Brazil. Drillhole MFSR-054 returned 88m @ 6.33% TREO (including 1.19% MREO) from surface, with a higher-grade core of 50m @ 9.0% TREO and a peak interval of 20m @ 12.05% TREO (including 2.18% MREO) from 18m depth.
The hole also intersected an additional 79m @ 1.11% TREO from 88m, delivering a total continuous mineralised interval of 167m. Crucially, MFSR-054 was oriented to the northeast, a new direction not previously tested, confirming that the deposit extends beyond its previously understood geometry. The company has now commenced planning for a maiden Mineral Resource Estimate (MRE).
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Four holes, consistent high grades — results at a glance
Every drillhole completed at Morro do Ferro to date has returned broad, high-grade mineralisation from surface. The table below presents all four completed holes, ranked by headline intercept width.
| Hole | Interval (downhole) | Width (m) | TREO % | MREO % (whole rock) |
|---|---|---|---|---|
| MFSR-054 | 0–88m (from surface) | 88 | 6.33% | 1.19% |
| MFSR-053 | 0–119.3m (from surface) | 108.55 | 4.15% | 0.82%* |
| MFSR-052 | 0–137m (from surface) | 137 | 4.31% | 0.73%* |
| MFSR-051 | 0–116m (from surface) | 116 | 4.78% | 0.78%* |
Asterisked MREO values for MFSR-051, MFSR-052, and MFSR-053 are footnoted in the source table. All widths are downhole distances and may not represent true thickness. Results for MFSR-051, MFSR-052, and MFSR-053 were reported in ASX announcements dated 31 July, 24 August, and 27 August 2026, respectively.
Every hole has ended in mineralisation. The deposit boundary has not been reached in any direction.
What makes Morro do Ferro stand out — and why it matters for investors
Near-surface, soft, massive mineralisation — a rare open-pit opportunity
To understand why these results matter, two terms are worth unpacking. TREO (Total Rare Earth Oxides) is the sum of all 15 rare earth elements measured as oxides — it tells you the gross grade of the material. MREO (Magnet Rare Earth Oxides) is a subset that includes only neodymium, praseodymium, terbium, and dysprosium — the four elements used in permanent magnets for EV motors, wind turbines, and defence electronics. MREO is the highest-value fraction, and Morro do Ferro is delivering it consistently.
The magnet rare earth targeting rationale at Morro do Ferro reflects a deliberate project strategy: neodymium, praseodymium, terbium, and dysprosium command structurally higher prices than the broader rare earth basket because demand from EV motors and wind turbine generators is growing faster than supply from non-Chinese sources.
Here is what sets the project apart from a development perspective:
- Near-surface deposit: All four holes intersect high-grade mineralisation from the surface downward, meaning no deep stripping or underground access is required at this stage.
- Open-pit potential: The deposit sits atop a hill. The announcement notes that pit size and design could be optimised purely on economics, not constrained by sharp geological structures or lithological boundaries.
- Soft, massive mineralisation: The ore is fine-grained and weathered, which typically reduces processing complexity and cost compared to hard-rock REE deposits.
- Lower capital intensity: Near-surface open-pit operations generally require less upfront capital and offer faster paths to production than underground alternatives.
- Regional peer benchmark: Brazilian Rare Earths (ASX: BRE) recently announced a MRE of 3.4Mt @ 11% TREO at its Monte Alto Deposit in Brazil (ASX announcement, 13 August 2026), which the company cites as a regional benchmark for its own MRE ambitions. This is a reference point for regional context, not a direct valuation of Morro do Ferro.
Gallium — a strategic co-product in focus
Gallium is a critical mineral used in semiconductors and defence electronics, and Morro do Ferro is returning elevated gallium alongside its REE results. MFSR-054 returned 1.5m @ 49.8ppm Ga from 96.15m (sample MFP-0429), confirming that gallium mineralisation extends to the northeast and at depth.
The previous highest verified gallium concentration was 124.5ppm from MFSR-053. Power is currently working with its commercial laboratory to determine the most effective analytical method for reporting gallium accurately in the presence of high REE concentrations, which create measurement interference. This is a supporting data point rather than a headline result, and further work is required before the gallium picture becomes clearer.
Deposit expanding — maiden MRE planning begins
Northeast confirmed, depth open — no deposit boundary found
MFSR-054 was deliberately oriented to dip to the northeast, at an azimuth of 45 degrees and a dip of -50 degrees. All prior holes (except the vertical MFSR-053) had been angled toward the southwest. By testing the northeast, Power has confirmed that REE mineralisation is continuous in a previously untested spatial dimension, adding meaningful confidence to the deposit’s scale.
The hole reached a total downhole depth of 253.55m, but results below 167m are still pending from the laboratory. Two distinct mineralised zones have been identified: a high-grade near-surface zone from 0–88m, and a constant-grade lower zone from 88–167m. The deepest sample returned to date from this hole is the deepest continuous mineralisation recorded on the northeastern side of the deposit.
The core recovery performance across the Morro do Ferro drilling program has been a quiet but important confidence indicator, with high recovery rates in the soft, weathered mineralisation reducing the risk that assay intervals underrepresent true grade due to sample loss.
CEO Alistair Stephens commented on the significance of the results:
Alistair Stephens, CEO, Power Minerals
“These results add to a growing and consistent body of evidence that Morro do Ferro hosts broad, high-grade rare earth mineralisation exposed from surface and continuing at depth… Our immediate priorities are to complete the drilling program, progress metallurgical test work and build a sound geological foundation for a maiden Mineral Resource estimate.”
Next catalysts — what investors should watch
The following workstreams are underway or planned, each representing a de-risking milestone for the project:
- Pending assay results from MFSR-055 through MFSR-060 and MFSR-062, to be released progressively as received from SGS Geosol Brazil.
- Ongoing maiden diamond drilling program, targeting approximately 25 holes / 4,000m across two rigs.
- Metallurgical test work, with dedicated core sampling planned within the current drilling program.
- Gallium analytical method resolution, in progress with the commercial laboratory to address REE interference.
- Maiden Mineral Resource Estimate, with planning now formally commenced, expected to reflect a shallow, open-pit profile based on drilling outcomes to date.
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Why PNN’s drilling momentum matters for investors
Four holes have been completed at Morro do Ferro. All four have returned broad, high-grade REE mineralisation from surface. That consistency is not coincidental — it reflects a deposit with coherent, continuous mineralisation rather than isolated high-grade pods that do not hold grade over distance.
The deposit remains open in multiple directions and at depth. With results from MFSR-055 through MFSR-062 still pending, the next wave of assays will further define the scale of what Power has discovered. Each new hole that ends in mineralisation without finding a deposit boundary is a data point that adds to the size potential.
The near-surface, open-pit geometry of Morro do Ferro is a structural advantage in a commodity where most undeveloped projects carry high capital costs due to depth or mineralogical complexity. If the deposit’s profile holds as drilling continues, it could position Morro do Ferro as a potentially lower-cost development option in a rare earth supply chain that Western governments are increasingly focused on securing.
The maiden MRE is now formally in planning. That is the next major de-risking event for the stock, and the foundation being laid by the current drilling program, both in grade and in spatial understanding, will determine the outcome. Power holds a dual listing on the ASX and OTCQB, broadening the investor base that can access this story as it develops.
Ready to Explore the Full Investment Case for Power Minerals’ Morro do Ferro REE Project?
Four consecutive high-grade intercepts from surface, a deposit open in multiple directions, and a maiden Mineral Resource Estimate now formally in planning — Morro do Ferro is building a compelling rare earth story in Brazil’s Minas Gerais region.
Explore Power Minerals’ Morro do Ferro project page on Discovery Alert to access the full drilling program details, upcoming assay catalysts, and the strategic rationale behind one of ASX’s most active REE development stories.