Power Minerals (ASX: PNN) has released the first set of drill results from its maiden program at the Morro do Ferro project in Minas Gerais, Brazil. The initial diamond drill hole, MFSR-051, intercepted a substantial 116 metres at 4.78% total rare-earth oxides (TREO) starting from the surface. Within this interval, the company identified a higher-grade zone of 31 metres grading 10.0% TREO and 1.58% magnet rare-earth oxides (MREO) beginning at a depth of 14 metres.

The results are significant due to the concentration of high-value magnet rare-earth elements, including praseodymium, neodymium, dysprosium, and terbium. These elements are critical components in the manufacturing of permanent magnets. Furthermore, the drilling confirmed the presence of gallium mineralisation extending to the end of the 210.9-metre hole, a discovery the company believes could improve the potential economics of future operations.

The current exploration campaign consists of approximately 25 diamond drill holes, totalling 4,000 metres of core drilling designed to expand the known mineralisation, alongside 800 metres of larger-diameter PQ core drilling to generate samples for metallurgical testwork. Operations are active with two shifts running, and the company plans to introduce a second drill rig to the site shortly.

"We are delighted to announce the initial results from our first drilling program at the Morro do Ferro Project. The first hole from the program has delivered standout results including a remarkable 1.0% for Pr6O11, 2.55% for Nd2O3, 986ppm for Dy2O3, and 196ppm for Tb4O7, all reported over 2-metre sample intervals. Additionally, the hole returned exceptionally high gallium concentrations which further highlight Morro do Ferro's standing as an exceptional emerging critical minerals asset, and align with our US-facing end-market strategy. The addition of gallium has the potential to significantly enhance project economics in any future critical minerals producing operation at the Project, and will be pursued as we progress our drill-out at the Project." — Alistair Stephens, Chief Executive Officer

As the program progresses, management is focused on near-term technical milestones. The company is currently awaiting laboratory assays for two additional drill holes. These incoming results, combined with data from the ongoing program, are intended to support the preparation of a maiden Mineral Resource Estimate for the project, which is scheduled for completion before the end of 2026.

The project site benefits from proximity to established infrastructure, including a sealed highway located five kilometres to the northwest and a high-voltage transmission line passing 1.5 kilometres southeast of the tenements. Power Minerals has established an office and a secure core processing warehouse in the nearby city of Poços de Caldas to manage logistics and support the continued drill-out of the deposit. Technical teams have reported successful core recovery, averaging 96.2% across the first hole, with future efforts concentrated on integrating these findings into the broader resource model.

Read the full announcement: EXCEPTIONAL HIGH-GRADE RESULTS FROM MAIDEN DRILLING AT MDF