Mike Fagan,
Editor
Sept. 12, 2024
Power Nickel Inc. (TSX-V: PNPN)(OTC: PNPNF) — currently trading around C$0.65 per share — has announced a significant expansion of the high-grade Lion Zone at its flagship NISK nickel-copper sulfide polymetallic project in northern Quebec, Canada.
Highlights include 10 out of 12 holes drilled thus far in the summer program intercepting sulfide mineralization, successfully extending the high-grade Lion Zone westward and expanding the mineralized footprint by an additional 150 meters of vertical depth.
The Lion Zone is a new discovery from last year and a potential game-changer for Power Nickel. The exploration-style drilling underway at Lion is a follow-up to a successful campaign at that same zone from earlier in the year, which produced high-grade, multi-element drill assay results, including:
- Hole PN-24-047: 14.42 meters of 0.59 grams per tonne (g/t) gold, 69.14 g/t silver, 8.17% copper, 6.25 g/t palladium, 8.44 g/t platinum, and 0.58% nickel.
- Hole PN-24-053: 5 meters of 1.76 g/t gold, 102.90 g/t silver, 12.70% copper, 20.87 g/t palladium, 1.02 g/t platinum, and 0.40% nickel.
Power Nickel CEO Terry Lynch commented on the Lion Zone expansion via press release:
“Our 2024 summer drilling program had two objectives: (1) Grow the Lion Zone and (2) Establish a process designed by Dr. Steve Beresford to maximize our ability to explore the project on a systematic basis, using approaches he used successfully with First Quantum, MMG, and IGO. I am very pleased to report success in accomplishing these objectives. The first results you will note in our Lion Zone growth and in the pictures below. The second will come in our planned fully funded 30,000 meter winter drill program. The Lion Zone, and indeed NISK overall, is blossoming into what we believe will be a world-class polymetallic discovery. We look forward to building on this summer’s hard work and success into what we feel will be a company defining winter program.”
Additional recently-completed holes from the ongoing 8,000-meter, 20-hole program are currently at the lab with assays anticipated by late September.
The program is focused on delineating additional mineralized zones of high-grade nickel, copper, cobalt, platinum, palladium, gold, and silver at Lion and at the more established NISK Main Zone.
In addition to the ~8,000 meters underway at NISK Main/Lion, the PNPN team is conducting an extensive property-scale exploration program, including downhole EM and ground-based geophysical surveys aimed at defining a possible continuity over the 5.5 km strike-length (see below) separating the two zones.
As noted, the company will be following up its summer program with a fully-funded ~30,000-meter winter program with Power Nickel VP Exploration Ken Williamson adding:
“...We believe analysis and interpretation of this data will set us up for an aggressive winter exploration program. We look to extend the Lion Zone, and we hope to discover other Lion Zones and find what we believe will be the big brother extensions to NISK Main, somewhere under the Lion Zone.”
To fund exploration/drilling at NISK, Power Nickel recently closed a C$20M flow-through financing via the issuance of ~16 million units at C$1.25 per unit.
Mining industry legends Robert Friedland (of Diamond Fields and Ivanhoe fame) and Rob McEwen (of Goldcorp and McEwen Mining fame) joined with several other leading mining investors, including CVMR Inc. and Terra Capital, to provide the investor buyback of the flow-through units financing for PNPN.
In terms of jurisdiction, Quebec’s favorable mining tax laws mean that for every dollar Power Nickel spends on exploration and development in the province, the company gets back fifty cents in tax benefit equating to around a 50% discount on exploration.
The NISK Main Zone boasts an NI 43-101-compliant Mineral Resource Estimate (2023) of a combined in-pit and underground Indicated resource of 5.43 million tonnes (Mt) grading 1.05% nickel equivalent (NiEq), and 1.79 Mt grading 1.35% NiEq of underground Inferred resource.
NISK Main remains open along strike and at-depth along what has been identified as high-grade mineralization shoots wherein a pilot platform-drill program is underway focused on parallel holes to the main contact for downhole EM surveying in search of new conductors.
With access to abundant low-carbon hydropower, shallow polymetallic mineral depth, and established infrastructure nearby, the exploration-stage NISK project is positioned to become, potentially, if produced, one of the lowest-cost and most environmentally-friendly sources of high-grade nickel in the world.
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With a fully-funded, multi-rig drill program underway at NISK Main and Lion, and with the highly-favorable metals mix being explored (plus additional assays due and another ~30,000 meters planned), Power Nickel is absolutely one-to-watch in the junior resource space.
For additional information on Toronto-based Power Nickel, be sure to contact the company’s IR department directly at 416-580-3862 or via email at duncan@powernickel.com.
Sign up to receive updates directly from Power Nickel here. View the Corporate Presentation here.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
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