PNN hits 119m of high grade rare earths from surface
Our rare earths Investment Power Minerals (ASX: PNN | OTCQB: PEIMF) just released more high grade results from its rare earth project in Brazil.
PNN is drilling out its Morro do Ferro project in Minas Gerais, Brazil, aiming for a maiden JORC resource estimate in Q4 2026 / Q1 2027.
The first four holes all returned long, high grade hits from surface, including 137m at 4.31% TREO and 88m at 6.33% TREO.
Assays have continued to show there is a high proportion of MREOs amongst all of the rare earths.MREOs are "Magnetic Rare Earth Oxides" - more on this below.
Today PNN released another partial assay, the “surface to 80m” section of last week's hole.
Adding in this result, that hole now shows 119m at 4.94% TREO from surface, including 10m at 12.31% TREO including 1.88% MREO from 41m.
(source)
Releasing assays hole by hole is generally a sign a company is excited by what it is seeing.
Well, PNN is releasing assays by sections of the hole...
This hole sits on a separate section line, 57m northwest of the earlier holes, so while still early days, it appears to be starting to confirm some initial scale to the hits.
(source)
Below is a cross section (with the other holes shown), so perhaps the mineralisation shows some higher grades at depth to the north.
Still early days of course, more results are needed to confirm this.
(source)
Today’s news follows last week's results covering 80m to the end of the hole. Today confirms that high grade rare earths extend from surface toward the north.
Not only are the TREO (Total Rare Earth Oxide) grades high, the MREO proportion is also very high compared to peers.
Many peers have high TREO - mostly filled with lighter rare earths in plentiful supply - not the MREOs everyone in the West is scrambling to secure a non-China supply of.
MREO are Magnetic Rare Earth Oxides, the high value ones used in robotics, EVs, military hardware and more, like in these:
Two weeks ago PNN defined a maiden Exploration Target of 9.2 to 10.7Mt at 7.8% to 9.2% TREO, which we covered in more detail here. PNN followed that up with a met testwork program being underway to, we covered that here.
The exploration target is not massive from a tonnage perspective, BUT it is very high grade and similar in size to ASX listed, $957M capped Brazilian Rare Earths.
PNN is capped at $63M.
Today's result supports the model behind that target, which had assumed mineralisation extends to the northwest.
For the full backstory on the drill program after the first couple of holes, see our recent article: PNN: Second hole delivers 53m at 10% TREO and 1.7% MREO from surface. Rare earths stocks in USA popped on Friday.
PNN’s neighbour got a ~$1BN takeover offer last week
After threatening a move into Brazil for years, the West’s biggest rare earths company, Lynas Rare Earths, finally made a move.
$13BN Lynas lobbed a $968M takeover offer for Brazilian rare earths developer Meteoric Resources (valuation based on Lynas’ share price at the time of the offer).
(source)
Lynas only has one operating rare earths mine, in Western Australia, and now it is going to Brazil.
Right next door to our Investment, the $64M capped Power Minerals (ASX: PNN).
PNN and Meterioc sit next door to each other in the same “Poços de Caldas” Complex, in the state of Minas Gerais.
(source)
Two rare earths companies right next door to each other, one subject to an almost billion dollar takeover offer, the other less than 1/10th the size.
Meteoric has taken a few years to reach this position, so it is more advanced as a developer.
PNN only in the last few months acquired its asset next door.
So, can PNN’s valuation grow closer to Meteoric’s over time as PNN de-risks the asset?
That’s what we are Invested in PNN for.
The main technical difference between the two companies so far is the type of mineralisation on each project.
Meteoric’s is the biggest ionic clay rare earths deposit outside of China.
PNN is progressing with the exploration of the hard rock carbonatite on its ground - the same type of geology as the only two producing rare earth mines in the west.
PNN does think that its ground could also host the same type of mineralisation as Meteoric also, though more exploration is required to test this out.
See what we think of this here: PNN’s neighbour gets ~$1BN takeover offer... What now?
What's next for PNN?
🔄 Results from current drill program
Here are the milestones we are tracking:
- 🔄 More drilling (two rigs currently drilling through to December)
- 🔄 Assay results (partial assays remain from holes 3 & 4, plus the next 14 holes). (source)
- 🔄 Metallurgical test work drilling (samples have been sent for testing. (source)
🔲 Maiden JORC resource estimate
Expected Q4 26/Q1 27 (should the drilling data allow it) - this is the big one for us.
(source)
🔲 Ionic clay potential tested at Morro do Ferro (MDF)
The "free shot" at the style of deposit that made PNN's neighbours worth a combined ~$1BN.
This one is especially relevant now after yesterday’s news with Lynas’s takeover of Meteoric.
