PNN to test samples from Brazilian project for gallium recoveries

Our Investment Power Minerals (ASX: PNN) just signed a deal to test gallium processing tech on its project in Brazil.

PNN will be sending gallium samples to Australian based Gega Elements for testing with their gallium refining tech.

Gallium is on the US critical minerals list and was ranked 6th in terms of “the estimated probability-weighted impact of supply disruptions on the U.S. economy”. (source)

Gallium is essential in semiconductors, defence electronics, and advanced communications.

China currently produces around 98% of the world’s supply which has prompted the US to look for alternative sources of supply.

Recently we saw the US government commit to US$200M in funding for Alcoa to build a gallium project in WA.

(Source)

PNN’s Brazilian asset is primarily prospective for rare earths and niobium…

… BUT previous drilling has hit assays with gallium grades as high as 232.7g

(Source)

The strategic objectives of the engagement aim to:

• Validate Power’s gallium samples using Gega’s bench-scale refining process
• Feed test results into PNN’s technical and economic project studies
• Co-develop a customised refining flowsheet suited to Santa Anna’s mineralogy
• Work together on government grant applications and outreach to potential end-users
• Establish a pathway toward a binding commercial agreement if the technology proves successful

(Source)

It is still very early days on the gallium front, but we are looking forward to seeing what comes from this new partnership.

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