PNN hits deepest rare earths yet at Brazil project

Our rare earths Investment Power Minerals (ASX: PNN | OTCQB: PEIMF) just received the final deep assays from one of the holes at its Brazil rare earths project.

PNN was very keen to get this hole back from the lab in particular, as the earlier shallower assays from this same hole had ended in a high grade interval of 2m at 7.85% rare earths at 181m depth.

PNN had been anxiously waiting on the lab assays on this deeper zone - according to the LEVRD podcast we listened to earlier in the week.

“I describe this like being at the dance with the most beautiful girl. She doesn't know whether she's going to dance with you or not. It's like, put me out of my misery, yes or no, is there mineralisation at the bottom of that hole or not?” (source)

“If Lord have mercy upon my simple soul, please give me the assays for 54 would be my message for the lab. Put me out of my misery or make my day.” (source)

The shallower sections from this hole had previously delivered grades above 5% and even 10%.

So a thick high grade zone deeper continuing on from that 7.85% high grade interval seen at the bottom of the prior assay for hole 54 would have made things very interesting… and PNN was keen to find out asap.

Today we learnt that the deeper result came back at around the 1% TREO (total rare earth oxides) range, with another high grade shallow interval even deeper.

PNN has been hitting very high grades in shallower zones, an ideal mining scenario is high grades from surface which impacts both sides of the equation in terms of costs and revenues, positively.

So while deeper it’s still showing mineralisation, this ~1% grade is what PNN considers to be on the low side (although it's a grade that we think other rare earths explorers would be happy with).

(source)

The other notable new assay from today’s release was a new, even deeper higher grade interval 2m at 6.88% TREO from 240m, the deepest high grade result at the project to date.

So while today’s results have not necessarily delivered the new large high grade zone we were hoping for at this depth, it’s still good to be hitting mineralisation and it provides more data for PNN going forward to understand the mineralisation.

What we are watching now are holes 61 and 65, drilled along the same line to the northeast - these will start to show whether there is some nice lateral extent to the mineralisation:

(source)

PNN is really starting to step out and drill away from the early holes, so in the coming weeks we should start to get an idea of the scale of this asset from both size and grade perspective.

Here is an overview of the results released so far and some of the assays due.

(source)

PNN has also started a passive seismic survey over the project.

This is a small ground sensor that listens to natural background vibrations to map the rock layers below surface.

This will help to target deeper drilling, now that two deep high grade zones have shown up in hole 54, which could be a sign of more high grade mineralisation elsewhere.

Look at the little guy go:

(source)

The current drilling work is planned to feed into a maiden JORC resource estimate targeted for either this quarter or Q1 next year.

Based on initial assay results, we are looking forward to this one, because it will allow a clear comparison to some of the other resources in the direct area and further beyond.

PNN has already shown high grade near surface, which is the ideal mining scenario - begin digging up the high grade ore to get maximum value from the start.

Here’s the full LEVRD podcast interview released a few days ago: 111m @ 8.25% TREO From Surface. Why Is Power Minerals Not at New Highs? - Alistair Stephens ASX: PNN

After watching it, it's clear that CEO Alistair Stevens is excited about the project and what has been seen so far… there’s some more good quotes from Alistair, but we won't print any more of them here, watch for yourself…

PNN’s drilling is starting to shape up nicely to peers

We are starting to learn a lot more about PNN’s asset and what it might take to start mining it. So it’s worth taking a closer look at what else is out there, and how much it's worth.

$475M Brazilian Rare Earths’ high grade rare earths mineralisation sits in thin, steeply dipping pods of hard rock, under ~30-40m of cover. Its scoping study shows plans to drill, blast and selectively mine them on 2m benches. (source)

PNN’s high grade rare earths hits start at surface, run 100m+ down every hole, and more than 80% of the drill core is soft, weathered saprolite - rock so soft it can be cut with just a steel blade. (source)

(source)(source)

We are not mining engineers, and PNN hasn’t done any official mining or economic studies yet - but on face value, one of those looks a lot simpler and cheaper to dig than the other.

Yep, it's PNN’s.

Right now, PNN’s project has an exploration target of 9.2 - 10.7Mt at 7.8% - 9.2% TREO.

Interestingly, PNN’s recent high grade results were NOT included in its exploration target model that generated the numbers above.

The upper end of PNN’s exploration target (IF converted into a JORC resource estimate) would put it right up there with the current Brazilian Rare Earths resource.

Brazilian Rare Earths is capped at $475M, MP Materials at $10BN and PNN at $70M.

And over recent weeks, PNN has delivered intercepts with grades materially higher than the average grade for both those deposits.

Of course, comparing a few select drill holes to a whole of deposit average shouldn’t really be done.

The point for us is that, IF/WHEN PNN can put together its own JORC resource estimate, with grades above OR comparable to the two assets mentioned above, the market COULD then start to reasonably compare PNN’s asset to its peers.

Remember, PNN has a maiden JORC resource estimate coming this quarter or next.

So within the next 4-5 months, ASX investors will be able to start drawing direct comparisons between PNN’s asset and Brazilian Rare Earths’.

Or maybe, $12BN Lynas who put forward a $968M offer for PNN’s neighbour could see what PNN has to offer and take a liking to it…

(source)(source)

We covered PNN's best ever rare earths earlier in the week: PNN: 51m at 15.4% TREO from 24m - the best rare earths hit we have ever seen on the ASX.

What's next for PNN?

🔄 Drill results & maiden JORC resource estimate

Here are the milestones we are tracking:

1. ✅ Maiden exploration target
2. 🔄 More drilling (currently drilling with two rigs)
3. 🔄 Assay results
4. 🔄 Metallurgical and mineralogy test work (underway). (source)
5. 🔲 Maiden JORC resource estimate (expected in Q4-2026, Q1-2027)

🔲 Ionic clay potential tested at PNN’s project

The "free shot" at the style of deposit that made PNN's neighbours worth a combined ~$1BN.

This one is especially relevant now after the recent news with Lynas’s takeover of Meteoric.