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Power Nickel (TSX-V: PNPN)(OTC: PNPNF) CEO Terry Lynch on Stepping-Out and Hitting at the High-Grade Nisk Nickel-Copper Sulfide Project in Mining-Friendly Quebec
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is Power Nickel CEO — Mr. Terry Lynch. How are you today, Terry?
Terry Lynch: Gerardo, I'm doing great. Good to talk to you. I hope you had a nice Turkey dinner and that you're working your way through all of those great calories.
Gerardo Del Real: We're about to get a good jog on here in a bit, go grab a cup of coffee, and then get ready for the second workout later on in the day. So, yes sir, it was a great holiday, great food, great company, and great drinks. I hope the same for you.
I know you've been on the road, and we had a brief conversation off-air. And I stopped it because I said, ‘Terry, one, this is interesting, and, two, it's really, really fascinating.’ And I wanted to capture some of it on air.
I also, of course, want to talk about completing Hole 80 and stepping out an additional 150 meters along strike, west, from the Lion Zone. So before we get to the specifics of that step-out hole and what you're doing with the database there, tell me about your recent travels because you've been all over the place. I see you on social media and, frankly, it's been hard keeping up with you.
Terry Lynch: Yes, we got invited by the Kingdom of Saudi Arabia to come and visit Saudi Arabia and see what they're doing there. And it's really amazing, obviously, that part of the world. They've got tons of financial resources, and they're using them in a pretty unique way.
Mohammed bin Salman Al Saud has made the decision basically to make mining the number three industry in the country. So you've got oil and gas, obviously, and tourism, and then now mining. And they're going from pretty much ground zero.
They've done very little mining in the Kingdom. Yet, land-base wise, it's the same land, effectively, geologically, as Egypt, Turkey, and Sudan. So you think about all of the great discoveries in those countries and really nothing to speak of in Saudi Arabia. Why is that?
Well, they just haven't looked. But now, they've done airborne IP over the whole country, and, if you can believe it, downhole EM segmentally over big chunks of the country. And that's all going to be available in a digital database that you can get in and look at.
They're going at things in an amazing sort of way, and you can bid on projects there that have some good bones, like some good baseline, green opportunities. And the first couple million dollars, effectively, in your exploration spend eventually gets back to you. So it's an amazing spot to go that, I think, has significant mineral prospectivity. Yet, it's cost-effective to get into.
And, of course, they're trying to grow their ecosystem so they want to introduce you to their family offices who are interested in mining investment. It's interesting to go from a world over here where we struggle to get investors and people turned on to mining… and then, you go over there, and here's one of probably the richest countries in the world saying, ‘Hey, we're going to make this a big part of our country. It's going to be number three, and we've got billions to invest.’
And it's like, holy cow, it's nice to meet that. And, of course, you meet the people… and the people are just like people everywhere. They want to do business with people they know, like, and trust. And we want to do the same. And that's how partnerships and investments happen… by people getting to know people and projects that are worthy.
It’s obviously early days and just an initial thing. I know Rob McEwen has been over there; Robert Friedland has been over there. The smart guys are getting over there and getting engaged. And so when you get an opportunity, for us as a small guy, it was something we decided was a worthwhile investment to do.
So we went over there and did that. And that was a good week. And then, I literally went on a plane from Riyadh to Dubai to Montreal to Nemaska, Quebec, in about 40 hours. It was a haul. We got to Nemaska last week. We always like to get up to the site and see how things are going and meet with our partner, the First Nations James Bay Cree, who are just a wonderful partner.
We got caught up with them and had some conversations. We’re drilling some pretty exciting ground right now. And so I'm able to see how the core gets moved from the helicopters, from the drill rigs, to the site, and just walk through the whole process.
We were talking off-air about how amazing the set of technologies mining puts together to make it possible to explore these lands which are in the hinterlands of most of these countries and turn them into productive copper that brings you electrical power to your house or nickel that becomes the EV battery that's in your car or the platinum watch band you've got.
It's pretty powerful to see all of the logistics coming together and working well. It was great to do that. And now, we're back in Toronto meeting with some investors. Obviously, we had some great news out this week, and we can talk about that in a second.
Gerardo Del Real: Yes, let's get right into it. The reason that you are over in different frontiers and new frontiers isn't just because you're a nice guy and you like to talk about your project… it's because you seem to have spectacular grade along with increasing scale.
I, of course, am talking about your Nisk [high-grade nickel, copper, PGM, gold, silver] project and the analogs there. And I think it's why you've attracted some world-class talent to the team. Let's talk about the latest developments there.
You’ve stepped out an additional 150 meters along strike. And you're also now publishing the drill assay database to-date for the Lion Zone on the company's website, which I really, really like. I love transparency in the business. I think it's good for the space. Can you speak to both of those things?
Terry Lynch: Yes, and I think it was good that we brought on Jon Christian “JC” Evensen to help us do a better job of communicating to what we perceive as the institutional investor, the more professional investor in mining. It's not that we weren't trying to do the job before but I think JC sort of made us realize that, ‘Hey, look, I don't think you've presented the big picture yet to these guys, and we really should.’
So the first objective of the press release was to sort of show how far we've already come. We've got 550 meters of amazingly consistent and fantastic strike length. And that's what we've tried to show in the chart is to show just how many great intersections we've had and how consistent they've been in terms of size and grade.
And I think that the press release did a good job of laying that out. And it's not every day you run into 32 meters of 6.97% copper-equivalent anywhere in the world even in the last 30 years. I mean, it's just crazy.
So we've had this amazing discovery, and now it's over quite a big chunk of already-existing, proven mineralized area. And then, what we wanted to do is set the stage for others to see that this discovery is basically an ultramafic contact point that, visibility, is 1.85 km. We think it could stretch as far as 7 km. Yet, visibly, there's 1.85 km of it that we know of.
We've drilled a strike length of 550 meters. And, obviously, that has been super productive. And then, we stepped out another 150 meters and banged it again. Now, we don't have the results just yet on that but, just as we've been showing in the pictures, when we have the great results, this zone, when you hit it, Gerardo, it's quite visible.
It's not like rocket science to know that you've hit the zone and have done very well. So that'll come. We hope to have some assays out on that before Christmas and certainly in January because we've been hitting more of them.
The objective was to try and show the world how big it already is, how successful we've already been, how amazingly consistent the scale has been in terms of the thickness and in the grade across the whole band of the mineralized area we've explored so far, and how big it could be.
And I think that's what we're trying to communicate and why we're spending the money going there and talking to people and letting them know. I mean, everyone who comes on your show would say their stock is undervalued. And we would say the same.
But I think what's interesting about us, unlike many, is that we're cashed up. We don't need any cash. And we’re delivering catalyst after catalyst. This thing is getting ready for a major move, I believe.
You’ll recall, back in the spring, we were having this conversation, and I said, ‘Look, this thing is ready. I don't know when it's going to pop but it's going to pop.’ And, shortly thereafter, it did.
We're continuing to deliver the catalysts, we don't need cash, and I think this thing is getting ready to charge.
Gerardo Del Real: Look, I think 2025 is going to be a blockbuster year in the commodity space. I think you're positioned perfectly. In fairness to you and myself, we've been saying this since the stock was trading in the high-teens.
And so here we are close to trading in dollars and not cents. I think 2025 is the year where you actually break through and trade in dollars and not cents. What comes in 2025? Set the table for me, Terry.
Terry Lynch: Yes, we are well along the way on a 30,000-meter drill program. We haven't reported a single result off of that yet. Obviously, the results from that will be what drives us because it will, again, we think, extend the strike length even further to show the sort of ‘mushroom-shape’ that this thing has.
At the top, it's spread out, which is where we hit that 32 meters of 6.97% copper-equivalent. And that was at 110 meters depth. And we know, west of that, we're still hitting it. It's also open at-depth. But, of course, being a small-cap junior miner, you do your ‘cheap’ exploration first. Meaning, you do the shallow drilling that's productive first. And that’s both east and west. And we're going to do that. And then, of course, we'll go at-depth.
The next 30,000 meters will take us to the end of April. We've got two rigs going now, and we’ll be adding a third just after Christmas and probably a fourth. We've got a lot of targets, and we’ve done a lot of brainwork, I would say, with Steve Beresford and the team at GeoVector and Ken Williamson — they've done a great job.
There are some amazing tools for nickel and copper sulfide bodies. The downhole EM is just amazing. When you drill a hole, it's a 6” diameter. But when you run the tool down, it turns it into a 200-meter diameter. So it gives you a great idea of what's around you for the next 200 meters so you can see if it's consistent. Then, you know you can step-out, say, 150 meters and bang another hole knowing that, highly likely, it’s going to be good.
That has been the tool of choice, and it has led us to such a great and fast expansion. So we'll be doing a lot more of that. It’s sort of like we just keep pushing the envelope east, west, and south and then get that news out to folks.
We publish the data for a couple reasons. One, we're like you… when I'm an investor, I like transparency. I like to do my own calculations. I read through all the bullshit from guys like me. I want to run my own models, and I think other people want to do the same.
So we put that out there for people to Leapfrog-Geo it and model it up. They'll come to the same numbers or they'll come to very similar numbers as compared to what we're seeing. And those are exciting numbers. And it’s just the start. So I think that'll get out there.
We're about to embark on a metallurgy program to show the metallurgical recoveries we could expect from the Lion Zone. So that'll be good, and I think we’ll get really good recoveries there.
I talked about that with Robert Friedland before he invested. The Platreef PGM-Nickel Mine, obviously, is one of his big projects down in South Africa. And as amazing as that project is, they're getting high-eighties and low-nineties recoveries there. And he says, ‘Look, I don't see anything deteriorous in your ore.’ So that was exciting.
Obviously, we need to flush that out. And that could be one of the things we could give the analysts, is the metallurgical studies, and that'll help them come up with better numbers than we think.
It’s going to be action-packed as we really have a lot of great stuff to come. And it's all science-based, and we're fully funded. As far as junior mining goes, we're just about as good as it gets… so we’re blessed.
Gerardo Del Real: Listen, you're in the sweet-spot. Again, I think 2025 is going to be a banner year in the commodity space. You're cashed up, you have the technical acumen, you have the project, and you have a tiger by the tail. It should be fun to see this play out, and it’s been great having you back on. Terry, let's chat hopefully before year-end as those assays come in.
Terry Lynch: Okay, sounds good. Have a great day.
Gerardo Del Real: Alright, take care out there. Cheers.
Terry Lynch: Bye.
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