Summary:Power Minerals launches maiden Brazil rare earth drilling at Morro do Ferro Project. This high-grade rare earth mining project boosts South American mineral development and processing equipment demand....

Subtitle: Maiden Drilling Campaign Unlocks High-Grade Rare Earth Potential of Brazil’s Morro do Ferro Mining Project

Power Minerals (ASX: PNN) officially announces the launch of a maiden drilling program at the Morro do Ferro Project in Brazil in May 2026, marking a key milestone for the company’s layout in global rare earth mining. Located in the core area of the Poços de Caldas alkaline complex—a globally renowned rare earth mineral concentration zone—this project boasts verified high-grade rare earth mineralization and huge resource expansion potential. The new round of Brazil rare earth drilling will further define reserve scale and lay a foundation for subsequent formal mining development, driving new demand for professional mineral processing equipment in rare earth mine operations.

Project Background & Drilling Program Overview

Power Minerals successfully completed the full acquisition of the Morro do Ferro REE Project in April 2026. Historical exploration data and recent sampling tests have confirmed extremely high-grade rare earth elements (REEs) mineralization in the project area, with individual sampling results reaching 14.03% TREO, far exceeding the average grade of global rare earth mines. Different from conventional shallow exploration, the newly launched drilling campaign adopts a multi-process composite exploration mode, focusing on solving the problems of unclear deep resource boundaries and incomplete mineralization coverage.

The entire drilling program lasts about three months, with a total planned drilling footage of 3,000 meters. It is divided into two core phases: deep diamond core drilling and peripheral aircore infill drilling. Deep drilling will target the 200-meter deep section of the main ore body, verifying the vertical continuity of high-grade mineralization, while peripheral infill drilling will expand the strike scope of the deposit and explore new potential mineralized areas outside the main mining zone.

Core Advantages of Morro do Ferro Rare Earth Project

Against the backdrop of booming global new energy industries, high-quality rare earth mining project resources are increasingly scarce. The Morro do Ferro Project stands out among global emerging mining projects with three core advantages, attracting widespread attention from global mineral investors and mining equipment suppliers.

First, the project has ultra-high mineral grade and stable mineralization. Historical drilling data shows that the shallow to middle ore bodies have continuous high-grade REE mineralization, and the deep ore body is still open, with huge resource expansion space. Second, the project is located in southern Minas Gerais, Brazil, with superior geological conditions, flat terrain and convenient transportation, which greatly reduces infrastructure construction and operating costs. Third, as a key layout project of Power Minerals in South America’s new energy mineral sector, it has complete mining qualification procedures and low investment risks.

Drilling Plan & Technical Exploration Targets

This maiden drilling operation is highly targeted, aiming to fill the data gap of deep and peripheral resources of the project, and provide accurate geological data for subsequent resource assessment and mining design. The detailed drilling plan and technical targets are shown in the table below:

Industry Impact & Equipment Demand Trends

The official launch of drilling at the Morro do Ferro Project marks a new breakthrough in Brazil rare earth mining development. As a key raw material for new energy vehicles, wind power generation and electronic precision manufacturing, rare earth resources are in sustained tight global supply. The commissioning of this project will effectively supplement South America’s high-quality rare earth supply and optimize the global rare earth resource layout.

In the subsequent exploration and mining development stage, the project will generate strong demand for professional mineral processing equipment. Rare earth ore has the characteristics of fine particle size, high abrasiveness and complex slurry composition, which puts forward higher requirements on slurry transportation, ore washing, tailings disposal and dewatering systems. Wear-resistant, energy-efficient and low-maintenance mining equipment will become the core configuration to ensure the stable operation of the project.

Future Project Outlook

Power Minerals stated that after the completion of this drilling program, the company will sort out geological data in a timely manner, compile the first JORC-compliant resource report, and accelerate the feasibility study of the project. If the exploration results meet expectations, the project will enter the construction and trial production stage in the next 1-2 years, becoming an important new high-grade rare earth production base in Brazil.

With the continuous advancement of global energy transformation, the long-term demand for rare earth minerals will remain strong. The Morro do Ferro Project’s exploration and development process will also drive the upgrading of supporting mining technologies and equipment, bringing new development opportunities for the South American mining equipment market.

Conclusion

Power Minerals’ maiden Brazil rare earth drilling at the Morro do Ferro Project opens a new chapter for high-grade rare earth mining project development in South America. The project’s unique high-grade mineral resources and superior geological conditions lay a solid foundation for future large-scale production. With the continuous progress of exploration and development, matched high-performance mineral processing equipment and intelligent mining systems will become key factors to improve mining efficiency and reduce operational costs, helping the project achieve efficient and sustainable development.