Power Minerals Defines Up to 10.7Mt at 9.2% Rare Earths at Brazil Project

Exploration target defined at Morro do Ferro rare earths project

Power Minerals has announced a maiden Exploration Target at its Morro do Ferro (MDF) Rare Earth Project in southern Minas Gerais, Brazil, marking a meaningful milestone in the project’s development pathway toward a potential JORC Mineral Resource estimate (MRE). The target has been defined at approximately 9.2 to 10.7 million tonnes at 7.8% to 9.2% TREO (Total Rare Earth Oxides), with an estimated 1.3% to 1.6% MREO (Magnet Rare Earth Oxides: Nd₂O₃ + Pr₆O₁₁ + Tb₄O₇ + Dy₂O₃). The target was commissioned specifically to optimise the current drilling programme for the most efficient path to a potential MRE, functioning as a strategic planning tool built on 169 drillholes, 3,241 assays over 5,696 m covering the full rare earth suite.

JORC Cautionary Statement

The potential quantity and grade of the Exploration Target stated above is conceptual in nature. Insufficient exploration has been completed to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve and must not be construed as an estimate of Mineral Resources or Ore Reserves. The Exploration Target has been prepared and reported in accordance with the JORC Code (2012).

What the data tells us: drilling, assays and model confidence

The Exploration Target is reported in two distinct components, making the degree of geological support transparent to the reader. The first is supported directly by drilling to date and carries higher confidence. The second is a conceptual projection into tenure that has not yet been drilled, principally in the southern lobe, to a maximum 200 m step-out.

• Drilling-supported component: approximately 5.2 to 6.4 million tonnes (57–59% of the total)
• Projected extension: approximately 3.9 to 4.4 million tonnes (41–43% of the total)

The projected component is inherently more uncertain and may not be realised. An important transparency point: nine diamond holes (MFSR-055 to MFSR-063; 1,158 m) within the modelled area remain unassayed and are excluded from the Exploration Target. Their results may materially affect the reported tonnage and grade in either direction.

Table 1. Morro do Ferro Exploration Target at an interpreted dry bulk density of 1.80 t/m³. The two grade shells are nested within the same body, so the higher tonnage corresponds to the lower grade threshold.

Geophysical data provides independent support for the mineralised trend. A drone LiDAR terrain model and integrated UAV geophysical datasets confirm the interpreted orientation, with radiometric response correlating strongly with TREO grade at +0.87 across 3,241 samples. Three 2026 triple-tube holes were also twinned against historical holes within 4 m, returning a mean offset of −6.6%. The limited twin dataset does not indicate systematic recovery-related grade bias.

Core recovery at Morro do Ferro has been a consistent strength of the programme, with the triple-tube drilling methodology specifically selected to preserve the soft lateritic material that hosts the mineralisation and prevent sample loss that would otherwise bias grade results downward.

Why magnet rare earths are the prize inside the deposit

TREO is the headline grade you see quoted for a rare earths deposit, representing the combined weight of all rare earth oxides in the rock. But not all rare earths carry the same commercial value, and the more important number at MDF is MREO — Magnet Rare Earth Oxides.

MREO is made up of four specific elements: neodymium, praseodymium, terbium, and dysprosium. These are the elements used to manufacture permanent magnets.

At MDF, the estimated 1.3% to 1.6% MREO is derived from a measured magnet ratio of 17.2% to 17.4% of TREO within the target grade shells. Think of this as a consistency check: rather than assuming a fixed relationship, the company measured the actual proportion of magnet rare earths in drilling intersections that fall within the grade range being reported. Using the deposit-wide average ratio of 18.2% would have overstated MREO within the Exploration Target by approximately 5%, so the more conservative, grade-specific ratio has been applied. That level of rigour matters to investors assessing how the numbers have been constructed.

Record MREO intersections from earlier in the 2026 drilling campaign established that the highest-grade portions of the deposit carry magnet rare earth ratios well above the deposit-wide average, which is precisely why the Exploration Target report applies a more conservative grade-specific ratio rather than the broader 18.2% average.

Priority project status and the path to a maiden mineral resource estimate

Power Minerals recently signed an agreement with the Government of the State of Minas Gerais, Brazil, granting MDF priority-project treatment. Under this agreement, environmental licensing is intended to follow the State’s specialised pathway within the Minas Gerais State Secretariat for Environment and Sustainable Development (SEMAD), with technical assessments conducted by the state environment foundation FEAM. The arrangement also provides broader government engagement through the Minas Gerais State Secretariat for Economic Development (SEDE) and Invest Minas, with all classification and licensing actions published in line with State legislative requirements.

Active drilling is continuing at MDF with two rigs currently in operation. The programme comprises 25 HQ core holes for approximately 4,000 m, testing the projected southern extension and depth continuity. Completion is expected within eight weeks.

The planned work programme, along with indicative timing, is as follows:

1. Complete assaying of MFSR-054 to MFSR-063 — Q3 2026
2. Deep diamond core drilling (greater than 200 m) — Q3–Q4 2026
3. Aircore drilling on untested margins — Q4 2026
4. Diamond drilling of geophysical targets MFT-088 and MFT-070 — Q4 2026
5. Additional bulk density work and metallurgical testwork — Q4 2026
6. Maiden Mineral Resource estimate assessment — Q4 2026 to Q1 2027

The estimated cost of the programme is AUD$2,800,000 for drilling and analyses. Power Minerals intends to fund the proposed work programme from its existing cash reserves. Subject to results, the company intends to assess whether the expanded dataset is sufficient to support a maiden Mineral Resource estimate.

Underpinning the project’s long-term security is its tenure position. MDF sits on mining title ANM 005.444/1946, a Manifesto de Mina covering approximately 300.72 hectares located about 13 km southeast of Poços de Caldas. Unlike a standard mining concession, this title is real property: the holder has both surface land and mineral mining rights, with no expiry date provided appropriate taxes are paid. The title is in good standing.

Ready to Explore the Morro do Ferro Rare Earths Opportunity Further?

Power Minerals’ maiden Exploration Target of up to 10.7 million tonnes at 9.2% TREO — with a compelling magnet rare earth oxide component of up to 1.6% MREO — positions MDF as a project of genuine strategic significance in the global rare earths landscape. With two rigs actively drilling and a maiden Mineral Resource estimate targeted for Q4 2026 to Q1 2027, the development timeline is advancing rapidly.

For a deeper look at the project’s fundamentals, drilling results, and investment thesis, explore Power Minerals’ full project profile on Discovery Alert to stay across every major development as it unfolds.