PNN now weeks away from 10,000M drill program on Brazilian rare earths asset

Our rare earths Investment Power Minerals (ASX: PNN) just announced results from a shallow drill program on its Brazilian rare earth project.

PNN’s results came from a 1,00m shallow program designed to test the top 15m of mineralisation on the project.

(basically, looking to confirm the high grades from all of the previous drilling on the project).

(Source)

PNN also confirmed in today’s announcement that deeper drilling would start on the project NEXT MONTH.

PNN expects the first 2,000m (of a bigger 10,000M RC drill program) to start in December ahead of a maiden resource estimate on the project targetted for Q1-2026.

We are hoping to see the deeper holes confirm PNN’s exploration model centred around its project being hosted in a big carbonatite…

Carbonatites are the same host structures that host $16BN MP Materials’ project, $13BN Lynas Rare Earths core asset and our Investment SGQ’s…

At the moment, shallow holes near the surface show rare earths and PNN just recently said that its theory of a hard rock intrusion has been “validated”.

(Source)

Now we wait to see what the deeper holes show and if they can confirm a broader carbonatite complex.

For us the next round of drilling will be what gives us enough information to know how PNN’s asset stacks up relative to one of our best performers this year - St George Mining (ASX: SGQ).

SGQ has the biggest, and highest grade hard rock carbonatite hosted rare earths project in South America.

SGQ’s share price is up over 400% this year (and was briefly up by 700%+).

IF we see PNN hit high grade rare earths at depths - in the right type of rocks - then it could be game on for the market to start drawing comparisons between the two companies.

Of course there is no guarantee that happens, mineral exploration is risky and PNN’s theory might not be proven - or it might not lead to an economic discovery.

We should know a lot more inside the next ~6 months…

What’s next for PNN?

🔄 Complete the acquisition of its US rare earths project

While the focus of today’s announcement was the rare earths project in Brazil, PNN is also completing the acquisition of a Rare Earth Project in California, USA

Read more on both the assets in our initiation note here: Our New Investment: Power Minerals Ltd (ASX: PNN)

Next we want to see PNN acquire its US rare earths project and start target generation works.

PNN will need to go to a shareholder vote to approve the deal so the next thing we should see is a notice of meeting to call the meeting where the vote will take place.

Here are the milestones we want to see PNN start as soon as the acquisition is completed:

Objective 1: Target Generation on US rare earths project

We want to see PNN sample, map and run geophysics on its US asset to identify priority drill targets.

Milestones:

🔲 Mapping and sampling (soil and rock chips)

🔲 Geophysics

🔲 Drill targets confirmed

🔄Drilling at Brazilian rare earths project

We want to see PNN start deeper RC drilling this month.

We also want to see PNN drill out and define a maiden JORC resource estimate in Brazil to enable comparison to peers.

Here are the milestones we are tracking on PNN’s Brazilian rare earths project:

Milestones:

🔲 Geophysics/Geochemistry work

🔄 Drilling starts

🔄 Drilling results

🔲 Maiden JORC resource estimate