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Severely limited supplies of critical minerals are running headlong into the greatest demand surge in history.
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This is why the recently passed “Inflation Reduction Act” didn’t include much on the inflation front...but rather provided powerful incentives to boost supply chains for critical minerals that are either based in the U.S. or in U.S.-friendly countries.
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In a world hungry for the metals to electrify the economy and shrink the world’s global carbon footprint, Power Nickel Inc. (PNPN.V; PNPNF.OTC) has emerged as one of the fastest-growing plays in the sector.
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The company is focused on growing the historical resource of critical minerals on its flagship Nisk project in Quebec.
The resource has it all in terms of the most desperately-needed minerals, with not only the nickel, copper and cobalt used in battery electric vehicles, but also the platinum and palladium used in pollution-reducing catalytic convertors.
The historical resource of these metals Power Nickel already controls at Nisk gives it a firm base to build on, and one that’s likely to grow significantly from here.
But here’s the thing: Power Nickel is still trading at just a C$30 million market cap, which means resource growth could easily catapult it into an entirely new valuation level.
And that could prove extremely profitable for investors who get onboard now.
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An Historical Resource To Build On
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Nisk comes with a 2009 historical resource that Power Nickel is in the process of upgrading to NI 43-101 compliance.
As a historical resource, the estimates can’t be relied upon, but the numbers do give you a good idea of the base Nisk has to start with.
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As you can see, Nisk’s historical resource has about three million tonnes of nickel-equivalent material, including solid grades for nickel, copper, cobalt, platinum and palladium.
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But the news gets even better from there: Follow up drilling by Power Nickel in 2021 confirmed grades and widths from the historical drilling on the main resource area at Nisk.
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And now recent drilling has done the same, with Hole 12 from last year’s program returning an impressive intersection of 10.2 meters of 1.40% nickel, 0.88% copper, 0.09% cobalt, 2.5 g/t palladium and 0.56 g/t platinum and Hole 9 returning a stellar 40.3 meters of 0.88% nickel, 0.56% copper, 0.06% cobalt, 1.64 g/t palladium and 0.15 g/t platinium.
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A Clear Path For Resource Growth
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Better still, as the drills prove up the historical resource in the main zone to NI 43-101 compliance, Nisk also has room to grow.
The map below shows the main resource area at Nisk in yellow, orange and red, and the red outlined areas show where the resource has the potential to add tonnage.
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In addition to the Nisk Central resource area, there’s ability to grow to the east with the Nisk East Extension target and to the west with Nisk West Gap and Nisk West Extension targets. There also room to grow the Nisk Central resource at depth.
A 7,500- to 10,000-meter drill program to do exactly that started in January, with an NI 43-101 update to the resource due in Q2 or early Q3 of this year.
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In other words, news on the resource expansion is on the way.
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And it could be big. Nisk is an ultramafic deposit. Other examples of Canadian ultramafic nickel deposits include Lynn Lake at over 22 million tonnes and the legendary Voisey's Bay deposit at 50 million tonnes. Could Nisk be that big? Only drilling will tell. But the Power Nickel team believes that it is a very real possibility given how drilling has gone and the prospectivity of the balance of the land package.
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Nisk benefits from its location in northern Quebec, a top-rated jurisdiction for mining friendliness.
The project lies beside a major highway and near to a Hydro-Quebec substation.
That access to hydro power, combined with the shallow depth of the deposit and established infrastructure nearby, should dramatically lower the cost, both monetary and environmental, of building a mine at Nisk.
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Plus A Big Bonus:
A Proposed Public Spinoff
Of Gold And Copper Assets
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Potential investors in Power Nickel could receive a big added bonus: A spin-out into a new company of Power Nickel’s gold and copper assets.
These assets lie in northwestern British Columbia’s rich Golden Triangle region and in the high desert of Chile.
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All four of the projects in the potential spin-out have had early-stage exploration and show signs of being excellent targets in their own right.
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By investing in Power Nickel before it makes its move, you set yourself up to own a fast-growing critical minerals company and a piece of these high-potential projects via the spin-out.
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Currently, Power Nickel is trading at a discount to its peer group, but that stands to change. Not only should the company get re-rated to its peer levels, but its recent drill results show that Nisk could soon grow significantly.
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With results still coming in from the Fall/Winter 2022 campaign, and drilling ongoing from its early 2023 campaign, Power Nickel won’t lack for news flow anytime soon.
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The opportunity for Nisk to grow via the drill bit is real here, and that opportunity argues for making Power Nickel a top contender on your due diligence list.
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