PNN starts met work on Brazil rare earths asset - targeting concentrate flowsheet

Our rare earths Investment Power Minerals (ASX: PNN | OTCQB: PEIMF) just started metallurgical and mineralogical studies at its Brazilian rare earths project.

PNN is currently drilling out the project, aiming to define a high grade maiden resource.

The drilling so far has returned a high proportion of Magnet Rare Earth Oxides (MREO) - neodymium, praseodymium, dysprosium and terbium.

These four are usually found in much lower concentrations elsewhere, and are in high demand for the permanent magnets inside robotics, EVs and military hardware.

Today PNN confirmed metallurgical and mineralogical studies are underway:

(source)

Over 100kg of drill samples have been sent off for testing, with a flowsheet for a rare earth concentrate targeted by the end of the year.

We are big fans of companies progressing multiple workstreams at once, in the case here we have PNN doing met work alongside early drilling, and not waiting for a defined JORC resource.

The aim from this met test work program is to selectively recover the higher value magnet rare earths while rejecting the low value cerium-rich material.

This should let PNN start progressing what a concentrate of those in-demand magnet rare earths looks like.

With the high grades seen in early (and historic) drilling, PNN may be able to start thinking about production scenarios.

Then, with a concentrate produced PNN may be able to start planning for a mining operation and possibly even near term production scenarios (e.g. digging up and sending off for processing).

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).

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

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

PNN drilling is still ongoing

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 partial assays remaining from 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.

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.