PNN to start deeper drilling on Brazilian rare earths project

Our heavy rare earths Investment Power Minerals (ASX: PNN) just put out a batch of assays from its project in Brazil.

Today’s results were from a shallow auger drill program - which was designed to be the precursor for a 10,000m RC program on the project.

Basically, PNN is testing shallow parts of the project to guide where it will drill the deeper holes.

PNN expects to start the deeper drilling this month, with the program expected to run through to Q1-2026.

(Source)

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.

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 within the next 12 months though.

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

After a recent announcement, we want to see PNN start the deeper RC drill program this month.

Here, we 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