February 08, 2023

All Power Nickel wants for Christmas are results.

I’ve said it on numerous occasions that when it comes to junior mining stocks, I pay close attention when a company has a steady stream of drill results pending. It becomes even more interesting, when the miner is targeting a commodity in a jurisdiction that seems very committed to developing the full cycle of mining and development in its own backyard. It also doesn’t hurt when that jurisdiction also has some of the most abundant and low cost hydro power in the world to help make both the mining and upgrading as low carbon as possible. Hence, today we are going to look at a nickel explorer in the province of Quebec, which is very focussed on building out the Becancour area as an EV battery hub, preferably with locally sourced materials.

That sets the stage to discuss Power Nickel Inc. (TSXV: PNPN | OTCQB: CMETF), a Canadian junior exploration company focusing on nickel, copper, gold, and battery metal prospects in Canada and Chile. On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk nickel sulphide project from Critical Elements Lithium Corporation (TSXV: CRE | OTCQX: CRECF). The Nisk property comprises a large land position (20 kilometers of strike length) with numerous high-grade intercepts. Power Nickel is focused on confirming and expanding its current high-grade nickel-copper PGE mineralization historical resource by preparing a new Mineral Resource Estimate in accordance with NI 43-101, identifying additional high-grade mineralization, and developing a process to potentially produce nickel sulfates responsibly for batteries to be used in the EV industry.

There is already a historic resource estimate for the Nisk property but it isn’t NI 43-101 compliant. Thus, using Power Nickel’s disclaimer: “The resource estimates at the Nisk project are of historic nature and the Company’s geology team has not completed sufficient work to confirm a NI 43-101 compliant mineral resource. Therefore, caution is appropriate since these historic estimates cannot, and should not be relied on.” Thus you can review the following at your own risk.

Source: Power Nickel Website

However, the Company is working hard to both add to the above numbers and make them NI 43-101 compliant with its current drilling program, which was recently expanded. Back in September, Power Nickel announced approximately 5,500 meters of drilling aimed at infilling gaps within the defined resource area, with the expectation that the results from the historic drilling programs, its initial program in late 2021, the current drill program, and a new metallurgical study will enable the Company to prepare a new 43-101 which is expected in Q2 2023. Along the way, Power Nickel completed an over-subscribed non-brokered private placement which raised C$4.2 million. On the heels of raising a bunch of new working capital, not surprisingly, the Company added an additional 7,500 to 10,000 meters to that previously announced drill program. The plan is to keep drilling through mid-December and start up again in mid-January.

In the meantime, results are starting to roll out and Power Nickel CEO Terry Lynch stated “We continue to like what we see with our drilling program.” Initial drill results, announced November 28, confirm the presence of high-grade Ni-Cu-Co-PGE mineralization in the Nisk Main zone and extends mineralization by an additional 150 m at depth and to the east and below to the central portion. Highlights include:

  • 25.86m @ 1.17% Ni, 0.80% Cu, 0.08% Co, 1.46 ppm Pd and 0.23 ppm Pt (PN-22-009)
    • And: 11.00m @ 1.50% Ni, 0.93% Cu, 0.10% Co, 1.85 ppm Pd and 0.36 ppm Pt
      • Including 1.80m @ 1.97% Ni, 0.41% Cu, 0.14% Co, 2.03 ppm Pd

Additionally, visual observations of the core confirm semi-massive to massive sulfide mineralization in holes PN-22-008, PN-22-010, PN-22-012 and PN-22-017. Results are now expected every two weeks or so until the end of February.

Perhaps Power Nickel will get a nice present from Santa Clause with some more drill results before Christmas. With a market cap of roughly C$22 million and a fresh C$4.4 million added to the Company’s working capital, they are well positioned to ring in the New Year with momentum on their side.

Disclaimer: The author of this post may or may not be a shareholder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review their public documents to conduct your own due diligence. To access the InvestorIntel.com disclaimer and other important legal notices, click here.

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