Categories: Base Metals / Precious Metals
Topics: General Base Metals / General Precious Metals

Power Metallic Mines (TSX-V: PNPN)(OTC: PNPNF) CEO Terry Lynch on Drilling, Cashed Up and All Star Shareholder Registry

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the gentleman running the show at Power Metallic (TSX-V: PNPN)(OTC: PNPNF), Mr. Terry Lynch. Terry, thank you for taking time. You have been busy, sir, on the road, here, there and everywhere. How are things going?

Terry Lynch: Good, Gerardo. Yeah, everything's going great. I've been battling a little cold. Finally got home after four weeks on the road and whenever you rest a little bit, that's when you get weak. I got to get to my homeopathic remedies and get healthy again, but yeah, minor shit really.

But yeah, business has been fantastic. I think probably the biggest thing that's happened in the last couple months is the Li-FT acquisition, which really gives us a lot more ground around our dynamite discovery at Nisk. Our feeling is it's really going to be more of an area play than just a specific... Obviously we're focused on Nisk and Lion and what we're doing there, but we see bigger things happening in the region, and we were able to pull that package together. It made good sense for Li-FT, made good sense for us, and so we're keen about that.

And then the rigs are turning every day and we're pushing the envelope. We'll get, I guess, first results from the summer program will start to come in probably mid-August is our guess, and then it'll be a steady stream of what we think will be good to great news from there until, I don't know, well past Christmas. So, we've got a hundred thousand meters of drilling, takes us well into 2026, and we have a tiger by the tail, so we're really sort of chomping at the bit to get the drills rocking and get the results out.

Gerardo Del Real: That acquisition from Li-FT, you expanded the project area by over 300%. Can you speak to that strategically, the approach there?

Terry Lynch: Yeah. So, we basically just know the geology that's working for us, and then we know regionally very similar characteristics on a number of the Li-FT packages that was apparent to us. So, we started to talk to Li-FT about a year ago, really, and obviously lots of conversations over that period of time, and then we finally struck a deal, I think it was fair to both sides. And we just felt that it gives us the room that we need to continue to expand these types of mineralized areas and zones and deposits that we think we'll find there. And so, we're really quite excited about it.

It gives us a lot of additional acreage to explore, and we certainly have got the capital to do it. So, Li-FT had done a great job of doing a lot of... They're really famous for their groundwork, their geochemical stuff, but they're almost... Li-FT came out of Kenorland, I think. And so, these guys are almost prospect generators in their own way, so they're really top tier geos, and so they do a lot of good work.

So, they did a lot of good work that matched a lot of what we were doing as well on the regional stuff. So, we can hit the ground running a lot of this area and we're doing some airborne EM over it, and then boots on the ground this summer. So, we'll be drilling, obviously the Lion extensions and the Tiger work. And then we're drilling a series of holes between Lion and Nisk to... That'll be the focus of the summer program. Probably, I don't know, 20,000 meters will get done between now and the end of September. So, busy, four rigs turning, and we're loving what we're seeing so far.

Gerardo Del Real: Well listen, copper's looking like it's going to hit new all-time highs here pretty shortly. It's running today, it's been running for the last several months. The structural deficits are very, very, very real.,And you got yourself a world-class discovery.

I know you're under the weather, Terry, I want to make sure that you go get some rest, but can you just touch real quick on what comes next, and the next six to 12 months, because I think they're pretty consequential for the company.

Terry Lynch: Yeah. So, we're obviously going to continue to push the envelope with the copper in the Lion Zone and Tiger. And it's interesting, the PGE and the noble metals we're about, I guess, almost 40% of the revenue right now. That was at the old prices. So, it's funny, even though as precious metals take off, people forget that we've got a lot of platinum plated gold and silver in this mix as well too, that helps the copper equivalent. So it's pretty robust.

So, the economics right now we've been carrying, when the Hannam research has us at nine and a half million tonnes in January at 7% copper equivalent, that was at 950 PGEs, platinum, palladium, and $2,700 gold, and $27 silver. So, obviously that's going to be impacted by the surging prices across the board in commodities. For us, we're using the borehole EM as the primary detection technique. It's resulting in us having success in about 50% of our drill holes, which is ridiculous, but it's because we know where the plates are and then we take a shot at it, sometimes we get it the first time, sometimes it's the second time, but we're able to keep on extending via that technique.

And so, what we're super excited about is this, we're already starting to drill this span of holes that'll go across from Lion right to Nisk, and we think that's connected. And obviously this will ultimately go a long ways towards showing that, and obviously expanding that strike length. So, it's increasing at depth and we think there's some other Lion pipes to be found in this pathway between Lion and Nisk. So, hopefully over the summer and fall we can do that.

And then the other thing that we're ultimately targeting in on is that we think underneath all this, is this giant nickel sulfide, which will be a very high grade nickel and copper, which is effectively what spawned the Lion Zone. So, that's how these orgo-magnetic deposits come. They start with they're nickel sulfide at the base, and then some sort of hydrothermal action happens and pulls the copper sulfide to the surface and they dissipate in these pipes, they're super rich. 

So, the trick is to follow the pipes down to the source, and at the source you should find this very rich nickel copper sulfide. That'll be much richer than Nisk, even though obviously we had some encouraging hits at Nisk in our last release as well. So, it's we're firing on all cylinders, and I guess from a stock perspective, it's interesting you can get in now cheaper than the smartest guys in mining.

We did that round in February, end of February, I think it was C$1.45 is what the investors paid. The company ended up getting C$2.50 through the tax breaks in Quebec, but today it's, I don't know, it's around about C$1.25 or something like that, so great. It's often the case in the summer, you get these summer doldrums, and it's a great inspired time to buy. It happened to us last summer as well, and then we went on a really serious tear and, without being overly optimistic, I just think that at the end of the day these results are going to start to stand on their own and people are going to realize, "Wow, this thing is super undervalued, relative to its peers and they continue to grow. They don't need cash." So, at some point I'd expect there's going to be some movement here. 

Gerardo Del Real: No listen, you position shareholders well, you're cashed up, you're drilling, you got assays, it should be a fun second half of the year. Terry, go get some rest. Thank you so much for your time, I appreciate you.

Terry Lynch: Thanks, Gerardo. Take care, man. Cheers for now.

Gerardo Del Real: All right, cheers now.

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