PNN delivers record magnet rare earth drill results from project in Brazil

Our rare earths Investment Power Minerals (ASX: PNN | OTCQB: PEIMF) just released assay results from the third hole at its rare earths project in Brazil.

And with them comes more ultra high grade rare earths, specifically the magnet rare earths, from near surface.

The hole hit 108.55m at 4.15% TREO from surface, with the strongest grades inside the first 35m with 29.25m at 9.01% TREO (Total Rare Earth Oxide).

It also delivered a project record magnet rare earth result of 4.40% MREO over 1.45m, the highest MREO (Magnetic Rare Earth Oxide) sample ever recorded at the project.

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We have called out the importance of magnet rare earth oxides (MREO) before.

Because some rare earths are much more common than others.

And some are much more useful than others.

The magnet rare earths are both rarer AND more useful.

These are specifically these four rare earth elements: neodymium, praseodymium, terbium and dysprosium.

And they are used in applications such as EV motors, robotics, wind turbines and defence systems:

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Here is a look at today's results in cross-section, next to PNN's first two holes:

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And for an aerial view of the drilling on site:

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PNN also hit mineralisation below 183m, deeper than any drilling at the project before, plus its best gallium result yet (2m at 124.5ppm gallium from 62m).

11 holes are now complete with two rigs spining and PNN is targeting a maiden JORC resource by the end of the year.

We covered why these grades stack up so well in our most recent note: PNN: Second hole delivers 53m at 10% TREO and 1.7% MREO from surface

Brazil to solve the western rare earths supply chain problem?

Brazil is home to the world's second biggest rare earth reserves (behind only China). (source)

We came across this from a week ago:

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Here is another article specifically highlighting the region that PNN’s project sits in is a rare earth hotspot inside Brazil, calling it the "new front" for rare earths:

There is also corporate precedent for interest in Brazilian assets:

1. The US$2.8BN USA Rare Earth's takeover of Serra Verde - the only large-scale producer outside Asia producing rare earths from ionic clays. The deal comes with a 15-year US government supply agreement including a price floor. (source)
2. A US$250M letter of interest from the Export-Import Bank of the United States (EXIM) to PNN's next door neighbour Meteoric Resources for its Caldeira project. (source)

$16BN Lynas Rare Earths former CEO has publicly said they are looking at Brazil for rare earths assets - here is what she had said at the time:

"Yes there are deposits there, yes there are deposits in Brazil. Yes we are looking at them." (source)

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Even the EU is looking to do a Brazil minerals deal:

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So there is definitely a group of important global capital allocators that are open to cutting cheques for Brazilian assets.

What's next for PNN?

🔄 Maiden drill program at Morro do Ferro (MDF)

Here are the milestones we are tracking:

1. ✅ First hole assays (116m at 4.78% TREO)
2. ✅ Second hole assays (Prior - 137m at 4.31% TREO, incl. 53m at 9.87%)
3. ✅ Hole 3 assays (Released today)
4. ✅ Second rig starts (full operations + two extra shifts since 4-Aug)
5. 🔄 More drilling (two rigs, program runs through December)
6. 🔲 Metallurgical test work drilling
7. 🔲 Gallium follow up results (new best hit today: 2m at 87.7ppm Ga from 83m)

🔲 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.