Power Minerals (ASX:PNN) has this week started a priority mineralogical characterisation program at its flagship Morro do Ferro rare earth project in Minas Gerais to identify the host minerals of valuable rare earth elements (REEs) and assess “any possible pathways to optimising the project’s future economics.”
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The primary objective of the study is to determine how critical magnet rare earth elements occur within the MDF mineralisation, Power told shareholders.
The program will evaluate whether low-value cerium and gangue minerals can be removed through mine planning and beneficiation before downstream processing.
Successfully rejecting cerium and radioactive minerals could simplify future process flowsheets, reduce reagent consumption, decrease downstream processing circuit sizes, and lower development capital requirements.
“By focusing on this approach, we aim to minimise the extraction of lower-value cerium and radioactive minerals,” managing director Mena Habib said.
There’s lots to gain, should it work, she added. “We believe this strategy could greatly enhance the project’s economic viability, streamline future development, and position Morro do Ferro as a differentiated magnet project.”
Alistair Stephen, the explorer’s CEO, made a similar claim: “I believe the mineralogical characteristics emerging at MDF have the potential to differentiate the project from many conventional rare earth developments.”
“Each stage of technical work strengthens our understanding of the project’s value and its potential importance to future rare earth supply chains,” he added.
Statistical analysis of Power Minerals’ current geochemical database shows that approximately 40% of the non-cerium rare earth inventory by mass consists of key magnet rare earth elements, specifically Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), Terbium (Tb), and Holmium (Ho).
Based on internal Chinese pricing assumptions from Project Blue in March 2026, the elements Nd, Pr, Dy, and Tb account for approximately 98% of the contained rare earth value within this non-cerium inventory.
Power is running a maiden diamond program at the site to expand its geological database and provide larger sample volumes for future metallurgical testing. Initial assays from this active drilling are expected in July.
Environmental studies have also been started, to assist with fast-tracking approvals under the project’s ‘Manifesto de Mina’ mining licence.
PNN is up +2%, to 13.8cps. It’s netted a +64% return YTD.
Join the discussion: See what HotCopper users are saying about Power Minerals Ltd and be part of the conversations that move the markets.
Disclaimer: This content has been prepared as part of a partnership with Power Minerals Ltd and is intended for informational purposes only.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.