PNN defines maiden exploration target for its rare earths project in Brazil

Our rare earths Investment Power Minerals (ASX: PNN | OTCQB: PEIMF) just defined a maiden Exploration Target for its rare earths project in Brazil.

The target:

A 9.2 to 10.7mt at 7.8% to 9.2% TREO (Total Rare Earth Oxides) with an estimated 1.3% to 1.6% MREO (Magnet Rare Earth Oxides).

Not massive from a tonnage perspective, BUT very high grade and similar in size to ASX listed Brazilian Rare Earths.

Brazilian Rare Earths market cap is ~$1.1BN and the company has a scoping study for its project showing a Net Present Value of ~US$6BN…

(source)

PNN’s upper end is 5Mt at 9.2% TREO, Brazilian Rare Earths resource is 3.4Mt at 11.26% TREO: 

PNN is currently capped at $64M…

Obviously, PNN’s project is a lot earlier stage with no defined resource yet - so PNN still has a fair bit of work to do to catch up to a Brazilian Rare Earths.

BUT given the project sits on a “Manifesto de Mina” it’s actually not that far away from being development ready.

The special permitting regime over PNN’s project means to get the project developed, PNN only needs to get environmental approvals.

Hypothetically PNN could close the gap to a Brazilian Rare Earths relatively quickly.

PNN is also currently drilling its project and has confirmed previously that a maiden resource for the project is targeted for Q4-2026/Q1-2027.

IF PNN can define a resource anywhere near the upper end of its exploration target (especially in terms of the overall grade of its project) we think the market could start to make comparisons between its project and Brazilian Rare Earths.

Next though, we wait to see more results from PNN’s drill program.

Drilling is still ongoing, the most recent assay was:

The key assays we are waiting to see results from are the ones from the deep hole PNN recently drilled.

Until a few weeks back we thought PNN’s project had its highest grades within the first ~100m from surface as follows:

(source)

But then PNN released a few more meters form a hole it had announced partial assays for, which ended in 5m at 4.32% TREO with 1.13% MREO from 181m, in a new zone:

(source)

Given these are partial assays remaining (and that PNN did report further partials recently, we could expect more to drop any day now:

(source)

IF those assays come back with strong grades, it could change the size/scale potential of PNN’s project.

What's next for PNN?

🔄 Maiden drill program at Morro do Ferro (MDF)

Here are the milestones we are tracking:

1. 🔄 More drilling (two rigs currently drilling through to December)
2. 🔄 Assay results
3. 🔲 Metallurgical test work drilling
4. 🔄 Gallium follow up results (new best hit with hole 3: 2m at 87.7ppm Ga from 83m), more gallium in the single 1.5m section sampled in hole 4 (same hole as today, from last week ).

🔲 Maiden JORC resource estimate at Morro do Ferro (MDF)

Expected before the end of the year - this is the big one for us.

🔲 Ionic clay potential tested at Morro do Ferro (MDF)

The "free shot" at the style of deposit that made PNN's neighbours worth a combined ~$1BN.