Power Minerals wraps up Morro do Ferro rare earths project due diligence

• All due diligence requirements have now been completed for Power’s Morro do Ferro rare earths project acquisition.
• Exceptional concentrations of magnetic rare earth oxides identified.
• Significant upside for follow-up because mineralisation is only partially delineated.

With a finalisation of the agreement to acquire the project imminent, Power Minerals (ASX:PNN) is undertaking deep RC and diamond core drilling on the main deposit at high-grade Morro do Ferro rare earths project in Brazil, and aircore drilling to test for surrounding satellite deposits in large undrilled areas.

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The company’s fast-tracked exploration plans for Morro do Ferro have been boosted by the due diligence confirming the project’s substantial potential for the definition of a significant magnetic rare earth oxides (MREO) in the mineral resource estimate (MRE) and its strategic alignment with Power’s project portfolio.

Power’s MD, Mena Habib, said the explorer is confident the project acquisition will position the company as an emerging leader in the rare-earths sector and help address the rising global demand for these essential mineral elements.

“The exploration data we have gathered show strong promise for the region’s resource potential, indicating significant opportunities for growth,” he said.

“Power believes the deposit itself not only presents incredible upside for expansion but also offers favourable topographical advantages for future development.”

Mr Habib continued: “Having bolstered our management team to include Alistair Stephens as CEO, whose extensive experience in rare earths exploration and development will be invaluable to our endeavours, we are excited to execute this transaction with vendor Mineração Terras Raras (MTR).”

Power entered into a binding letter of intent (LoI) with private exploration company MTR to acquire the project last month. The very high-grade REE asset Power is picking up is strategically located within the Poços de Calders Complex, acknowledged as one of the world’s leading REE precincts.

Findings from Power’s technical due diligence have reinforced the concentrations of magnetic REEs as part of the total REEs concentration, which were intersected in drilling by the previous project owner.

PNN is down -3.70% today, to 13¢.  Mkt cap $45.80M.

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