PNN extends high grade rare earths at depth at Brazil project

Our rare earths Investment Power Minerals (ASX: PNN | OTCQB: PEIMF) just hit more high grade rare earths from a new drill section at its Morro do Ferro project in Brazil.

PNN is drilling out this project, aiming for a maiden JORC resource estimate in Q4 2026 / Q1 2027.

The first four holes (including partial assays released prior) all returned long, high grade hits from surface, including 137m at 4.31% TREO and 88m at 6.33% TREO.

PNN has released the partial assays from the middle section of a hole drilled 57m to the northwest of the prior few holes, so extend the mineralisation into a new area, not more of the same along the same line:

(source)

The new hole hit:

(source)

We want to point out that not only are the TREO (Total Rare Earth Oxide) grades high, but the proportion of these that come from the MREO portion (the specific subset of most interest currently) are also generally very high compared to peers.

Many peers have a high TREO, but this might be mostly filled with lighter rare earths which are in high supply, not MREO’s which we are seeing a bit of a scramble on to secure non China supply of.

MREO are Magnetic Rare Earth Oxides, the high value ones which are used in things such as robotics, EVs, military hardware and more, like in these:

The interesting part for us is that this entire hit from today (where the assays have been received) sits below 80m.

The assays from surface to 80m are still at the lab (plus the lower part of the hole), so we wait to see what these reveal.

The first four holes carried their best grades near surface, so IF the shallow assays come in strong this hole could get even better.

We need to wait for the remaining partial assays to see where this fits in the grander scheme of things - to see whether this is a new zone of mineralisation, continues to depth or if it’s expanding to the north (what we want to see).

The deepest sample in the hole from today was still mineralised, so we should get an update soon to see if this continues deeper.

(source)

Last week PNN defined a maiden Exploration Target of 9.2 to 10.7Mt at 7.8% to 9.2% TREO, which we covered here (and yesterday PNN announced a met testwork program is underway to, covered here).

Not massive from a tonnage perspective, BUT very high grade and similar in size to ASX listed, $990M capped Brazilian Rare Earths (PNN is capped at $53M).

Today's result supports the model behind that target, which had assumed mineralisation extends to the northwest.

For the full backstory on the drill program after the first couple of holes, see our recent article: PNN: Second hole delivers 53m at 10% TREO and 1.7% MREO from surface. Rare earths stocks in USA popped on Friday.

PNN’s drilling is still ongoing

On top of today's partial assay from a hole to the northeast, the next key assays we are waiting to see 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 from 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 there are still assays remaining from the end of that hole still and that PNN has reported partial assays recently, we could expect more results 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.

PNN’s project sits on a unique title, a "Manifesto de Mina", meaning PNN only needs environmental approvals to develop it. (source)

We did a deep dive on the unique project title and the drilling program’s initial results: PNN: Second hole delivers 53m at 10% TREO and 1.7% MREO from surface. Rare earths stocks in USA popped on Friday

Last week PNN released an exploration target of 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).

On the back of the exploration target, PNN held a webinar last week with the CEO, MD and Exploration Manager, you can watch that here: Exploration Target Investor Webinar - September 2026

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 (announced today, expected by the end of the year)
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 (no guarantees of success for PNN of course).