Power Minerals has concluded the acquisition of the high-grade Morro do Ferro (MDF) rare earths project in southern Minas Gerais, Brazil.
The acquisition follows a definitive agreement with Mineração Terras Raras (MTR), a private exploration company.
The agreement was secured following Power's technical evaluation, which revealed notable concentrations of magnetic rare earth oxides (MREOs) such as neodymium, praseodymium, dysprosium and terbium.
These elements account for more than 80% of the market value of rare earth elements (REEs).
The project is situated within Brazil's Poços de Caldas Alkaline Complex, a region known for its rare earth resources.
Drilling conducted by previous owners revealed results including 35,332 parts per million (ppm) MREOs over 2m in drill-hole MFSR-47.
Additionally, results from other drill-holes included 100.44m at 49,910ppm total rare earth oxide (TREOs) in MFSR-10 and 60.85m at 89,177ppm TREOs in MFSR-35.
Previously, a binding letter of intent (LoI) with MTR was established, leading to comprehensive corporate, financial and technical due diligence.
This confirmed the project's potential for significant MREOs and its alignment with the company’s strategy in the rare earth sector.
Future exploration will focus on deeper diamond drilling, reverse circulation drilling of the main deposit and aircore drilling to identify new targets.
These efforts are aimed at defining mineralisation, which remains open at depth and along strike.
Power Minerals managing director Mena Habib said: “We are delighted to have completed the acquisition of the Morro do Ferro Project, having only entered into an LoI to acquire the project in the previous month and completing comprehensive due diligence earlier this month.
“The project represents a well-validated, high-grade, rare earth asset in an emerging global rare earth hub in Brazil and is an ideal complement to our Brazilian project portfolio. An assessment of available exploration data highlights the project’s strong mineral resource potential and excellent expansion upside, subject to further exploration.
“The project also has significant topographical advantages that we will seek to exploit in any future development. Leveraging the extensive technical expertise of our management team, we look forward to expediting our initial exploration programmes at MDF to realise its full value proposition.”
In August 2024, Power Minerals closed the acquisition of the Lítio Niobium Project in Brazil from Ita Iron Mineracao after completing legal due diligence.
