Highlights
• Power Minerals shares rose 3.85% on 13 April 2026 following a key project update
• Due diligence completed for the Morro do Ferro rare earths project in Brazil, paving the way for acquisition
• Technical review confirmed strong magnetic rare earth oxide (MREO) concentrations, including up to 35,332ppm
• Key rare earth elements expected to contribute more than 80% of total project value
• Historical drilling highlights high-grade TREO and MREO intercepts, supporting large-scale resource potential

Power Minerals Limited (ASX:PNN) shares advanced 3.85% to AUD 0.14 on 13 April 2026, extending an impressive 92.86% gain over the past year, as investors responded to a significant update on its rare earths strategy. The share price movement followed the company’s announcement that it has successfully completed due diligence for the Morro do Ferro rare earths project in Brazil, positioning it to move toward finalising the acquisition.

The update highlights a major step in Power Minerals’ expansion into the rare earths sector, with technical findings confirming strong mineralisation and reinforcing the project’s strategic importance within the company’s portfolio.

Company Overview and Strategic Direction

Power Minerals Limited is an ASX-listed exploration and development company with a diversified asset base across lithium brine projects in Argentina and critical mineral assets in Brazil, Australia, and Canada. The company is focused on building exposure to commodities essential for electrification and advanced technologies, including rare earth elements.

The Morro do Ferro project represents a key addition to this strategy, offering exposure to high-value magnetic rare earth elements that are critical in modern industrial applications.

Due Diligence Completion Marks Key Milestone

The company confirmed that it has completed comprehensive corporate, financial, and technical due diligence on the Morro do Ferro project, located in the Minas Gerais region of Brazil. Following this process, Power Minerals plans to proceed with finalising the definitive agreement to acquire the project.

The due diligence findings support the project’s potential to host a significant mineral resource, particularly in magnetic rare earth oxides. The company indicated that the asset aligns well with its broader growth strategy and could strengthen its position in the rare earths market.

Power Minerals had previously entered into a binding Letter of Intent to acquire the project, and the completion of due diligence represents a transition toward execution and development.

High-Grade Drilling Results Reinforce Resource Potential

A central outcome of the evaluation process is the confirmation of strong rare earth mineralisation across the project. Historical drilling results indicate substantial total rare earth oxide (TREO) grades across multiple drillholes.

Key diamond drilling intercepts include:
• 100.44m at 49,910ppm (4.99%) TREO from surface
• 60.6m at 70,217ppm (7.02%) TREO
• 60.85m at 89,177ppm (8.92%) TREO
• 70.9m at 79,997ppm (8.00%) TREO

In addition, near-surface auger drilling has returned exceptionally high-grade results, including:
• 9m at 117,706ppm (11.77%) TREO
• 10m at 71,904ppm (7.19%) TREO

The presence of high-grade mineralisation from surface to end-of-hole across multiple drillholes highlights the scale and continuity of the deposit. Several drillholes also recorded significant mineralisation at the end of drilling, indicating that the system remains open at depth.

Individual high-grade samples further demonstrate the intensity of mineralisation, with results including:
• 2m at 241,301ppm (24.13%) TREO
• 2m at 177,489ppm (17.75%) TREO

These figures underscore the presence of exceptionally high-grade zones within the broader deposit.

Magnetic Rare Earth Oxides a Key Value Driver

Beyond total rare earth content, the company’s due diligence highlighted the importance of magnetic rare earth oxides (MREO), which include neodymium, praseodymium, dysprosium, and terbium.

Drilling results confirmed strong MREO concentrations, including:
• Up to 35,332ppm (3.53%) MREO over a 2m interval
• 100.44m at 9,485ppm MREO, including 19.3m at 22,541ppm
• 60.6m at 13,129ppm (1.31%) MREO

High-grade individual samples also returned:
• 2m at 34,835ppm (3.48%) MREO
• 2m at 33,569ppm (3.36%) MREO

These magnetic elements are particularly significant as they are used in high-performance magnets and are estimated to contribute more than 80% of the total value of rare earth element production.

The company noted that MREO concentrations at Morro do Ferro compare favourably with or exceed those found in many other deposits, reinforcing the project’s potential economic importance.

Geological Setting and Expansion Upside

The Morro do Ferro project is located within the Poços de Caldas Alkaline Complex, a recognised rare earth province that hosts several advanced projects. This geological setting supports the potential for further discoveries and resource growth.

Drilling completed to date has only partially defined the deposit, with mineralisation remaining open both along strike and at depth. Large areas remain untested, and previous drilling programs were conducted with wide spacing, indicating significant scope for expansion.

The company believes that further exploration could materially increase the scale of the resource, particularly through infill and step-out drilling.

Favourable Development Characteristics

In addition to strong mineralisation, the project benefits from several features that may support development. The asset holds a ‘manifesto de mina’ title, providing direct land ownership and facilitating exploration activities, subject to environmental approvals.

The project area is already cleared due to plantation use, which may simplify access. Furthermore, the main deposit is located along an ഉയര്ated ridge with more than 100 metres of topographic relief, which could support potential open-cut mining operations.

These characteristics may contribute to more efficient project development and mine design.

Next Steps Focused on Resource Growth

With due diligence complete, Power Minerals is preparing to finalise the acquisition agreement in the near term. Following completion, the company plans to undertake extensive drilling programs to further define and expand the resource.

Upcoming exploration activities include deep reverse circulation and diamond drilling targeting the main deposit, as well as aircore drilling to test surrounding areas for additional mineralisation.

The company highlighted that the deposit remains open and poorly defined in several areas, presenting opportunities to expand the known resource footprint.

Management Commentary Reflects Confidence

Management indicated that the due diligence process has confirmed the project’s strong potential and highlighted opportunities for growth. The company believes the asset offers both scale and development advantages, supported by favourable geology and high-grade mineralisation.

The addition of experienced leadership in rare earth exploration is expected to support the next phase of development as the company progresses toward completing the acquisition.

What This Means for Investors?

The completion of due diligence marks a significant step forward for Power Minerals as it moves to secure a high-grade rare earths asset in Brazil. The combination of strong drilling results, high concentrations of valuable magnetic rare earth elements, and expansion potential appears to be underpinning the positive share price reaction.

With further drilling and resource definition planned, investors are likely to closely monitor progress as the company advances its position in the rare earths sector.