Power Minerals Delivers 94.5% Core Recovery at Morro do Ferro

Power Minerals Advances Maiden Drilling Programme at Morro do Ferro With Strong Early Core Recovery

Power Minerals (ASX: PNN | OTCQB: PEIMF) has completed the first two holes of its Power Minerals Morro do Ferro maiden drilling results in Brazil, delivering encouraging early outcomes at the Rare Earth Elements (REE) Project in Minas Gerais. According to the company's announcement, core recovery has averaged 94.5% across 487.8 metres drilled so far, samples have been dispatched to SGS Geosol laboratory for assay, and a drone-based geophysical survey has been completed across the entire project area. The company reports $7 million in cash on hand to support continued exploration.

At a Glance: Morro do Ferro Drilling Update

Two Holes Down, Assay Results on the Way

The first two holes of the maiden drilling campaign at Morro do Ferro have been completed using HQ triple-tube diamond core methodology, a technique chosen specifically to maximise core recovery and support high-quality analytical, geological and metallurgical data. A third hole, MFSR-53, is now in progress and has passed the 200-metre mark.

Core recovery of 94.5% across 487.8 metres stands out at this stage of the programme. In exploration drilling, recovery rates at this level provide geologists with a more complete subsurface record, which can reduce uncertainty in geological modelling and support confidence in any subsequent resource estimate.

Samples from the first two holes have been cut and dispatched to SGS Geosol, a geochemical laboratory operating in Brazil, with results expected within two to three weeks according to the company. Furthermore, sampling has reportedly been continuous across the entire cored length of both holes, meaning no section has been excluded from analysis.

"We are excited to share that the initial phases of the drill program at Morro do Ferro are progressing exceptionally well. Two HQ triple tube holes have been successfully completed, and we're currently advancing with a third hole. The core recovery has been outstanding… 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."

Alistair Stephens, CEO, Power Minerals

Understanding HQ Triple-Tube Diamond Drilling

For investors less familiar with exploration terminology, this section outlines a key method referenced in the update.

Diamond core drilling involves a rotating drill bit fitted with industrial diamonds that cuts a cylindrical sample of rock from underground. This sample, known as core, is retrieved intact and examined by geologists to determine what minerals are present, at what grades, and within what geological structures.

HQ triple-tube describes two elements of the drilling method:

• HQ: A drill rod diameter producing a 63.5mm core, large enough to provide adequate sample volumes for geochemical and metallurgical testing
• Triple tube: A three-barrel system that encases the core as it is cut, limiting the risk of loss, damage or dilution from water and drilling fluids

Higher core recovery generally means more complete geological data. A reported average recovery rate of 94.5% indicates geologists are working with close to the full rock column rather than fragmented or missing sections. This can support the reliability of any resource model that follows, which in turn contributes to the credibility of a JORC Mineral Resource Estimate.

Key Terms Referenced in This Update

• JORC 2012: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the standard framework used for resource reporting on the ASX
• Mineral Resource Estimate (MRE): A formal, JORC-compliant quantification of mineralisation, classified by confidence level as Inferred, Indicated or Measured
• REE (Rare Earth Elements): A group of 17 metallic elements used in technologies including electric vehicles, wind turbines, magnets, robotics and defence applications
• DEM (Digital Elevation Model): A three-dimensional representation of surface terrain used as an input for geological and resource modelling
• Apophyses: Offshoots or branches from a main geological body, in this context potential satellite mineralisation zones beyond the known deposit
• Azimuth: The horizontal direction of a drillhole, measured in degrees from north
• Gyroscopic downhole survey: A tool used to track the trajectory of a drillhole underground, used for accurate three-dimensional modelling

Drone Survey Adds Surface and Subsurface Data

Alongside the drilling programme, Power Minerals has completed a high-resolution drone-based geophysical survey covering the entire Manifestos de Mina area. According to the company, the survey acquired:

• A digital elevation model (DEM) for precise surface topography
• High-resolution aerial photography of the project area
• Magnetic and radiometric datasets, including potassium, uranium and thorium measurements

The DEM is intended to serve as an upper-surface constraint when building the three-dimensional Mineral Resource model, effectively defining the surface boundary of the geological envelope.

The magnetic and radiometric data are expected to serve a dual purpose: refining the known geometry of the Morro do Ferro deposit and identifying potential apophyses or satellite targets. Consequently, these are areas of mineralisation that may extend beyond the currently defined footprint. The company has indicated this raises the possibility that the mineralised system could be larger than historical work has established, though this remains subject to further exploration.

Programme Design Aimed at JORC Resource Classification

The structure of the drilling programme reflects a stated strategy to progress toward a JORC 2012 Mineral Resource Estimate. Key design elements outlined in the announcement include:

1. Multiple orientations: Holes drilled at varying dips and azimuths to build a three-dimensional geological model
2. Depth extension: The first two holes followed the same azimuth as historical drilling but extended to greater depths, testing the deposit at previously undrilled levels
3. Vertical drilling: MFSR-53, currently in progress, is a vertical hole providing a different cross-section through the mineralisation
4. Margin definition: Holes are designed to continue beyond expected mineralisation to help define deposit boundaries rather than assume them
5. PQ large-diameter drilling: 800 metres of larger-diameter core is planned specifically to support metallurgical test work, a required step ahead of any future resource or scoping studies

According to the company, this multi-hole, multi-orientation approach is consistent with industry practice for REE deposits and is intended to provide the data density required for JORC classification.

Santa Anna Niobium Project: Soil Sampling Planned

Separate from the Power Minerals Morro do Ferro maiden drilling results in Brazil, the company has provided an update on its Santa Anna Project in Goiás State, which hosts niobium mineralisation within a carbonatite complex.

To date, most drilling at Santa Anna has focused on the centre of the complex. However, the company is now planning a systematic soil sampling programme across the wider surrounding areas, targeting the margins of the carbonatite complex where additional niobium occurrences may be present.

• Soil sampling programme planned for completion within the current quarter
• Results to be released progressively as they become available
• Programme described by the company as a reconnaissance step to guide future drilling decisions at Santa Anna

Financial Position and Operational Access

Power Minerals reported $7 million in cash, which the company states is sufficient to execute its exploration strategy at Morro do Ferro. With a second drill rig arriving shortly and the programme designed to run through to December if required, the company is targeting completion of the planned approximately 4,800 metres of drilling.

The Manifestos de Mina mining licence structure gives Power Minerals both mining rights and surface rights over the project area. According to the company, this means it is not subject to third-party landowner access restrictions, which can otherwise be a source of delay in exploration programmes.

Milestones Ahead

Investor Considerations

Several elements of this update are relevant for investors tracking the Power Minerals Morro do Ferro maiden drilling results in Brazil and the company's broader progress:

• Location: The project sits within the Poços de Caldas Alkaline Complex in Minas Gerais, an area recognised internationally for rare earth prospectivity
• Core recovery: A 94.5% recovery rate from the initial two holes reflects a well-executed technical programme and reduces the risk of data gaps in future resource modelling
• Near-term catalyst: Assay results from the first two holes are expected within weeks, representing the next material data release
• Programme scale: The arrival of a second drill rig and a schedule extending through December suggests the company is building toward a data set sufficient for JORC classification rather than a limited-scope campaign
• Drone survey data: Magnetic and radiometric results may help identify satellite targets beyond the known deposit, though this remains subject to further interpretation
• Parallel project: Santa Anna's niobium soil sampling programme adds a separate source of near-term news flow
• Funding position: $7 million in cash is reported to provide runway to complete the current drilling programme and progress toward the targeted JORC resource milestone

Key Takeaway

Power Minerals has outlined an active exploration programme at Morro do Ferro, with assay results pending, a second drill rig due to arrive, and a JORC Mineral Resource Estimate targeted for later in 2026. Investors following developments in the rare earths and critical minerals sector may wish to monitor upcoming assay results and progress on the Santa Anna soil sampling programme in the weeks ahead.

Want to Know More About Power Minerals and Its Morro do Ferro REE Project?

With maiden drilling underway, assay results imminent, and a JORC Mineral Resource Estimate targeted for 2026, Power Minerals (ASX: PNN | OTCQB: PEIMF) is at an active stage of its exploration programme in Brazil. Investors looking to stay across upcoming catalysts — including first-hole assay results, the arrival of a second drill rig, and Santa Anna soil sampling results — can find further information on the company and its projects by visiting www.powerminerals.com.au.