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| One of today’s top resource plays has just become one of the most exciting copper discovery plays.
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| That now gives investors two ways to win.
You see, until very recently, Power Nickel (PNPN.V; PNPNF.OTC) was an “optionality play” on nickel — a company with a huge resource in a temporarily under-valued metal. In other words, a very leveraged bet on the eventual rebound in nickel prices.
As such, Power Nickel was extremely undervalued...and still is today on the basis of its world-class nickel resource alone.
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| But now the company has much more going for it: An amazing new discovery with high-grades across a full suite of metals including copper, platinum, palladium, silver and gold, making Nisk a polymetallic discovery.
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| Polymetallic mines are mines where the primary metal value is exceeded in value by the other metals in the orebody. These are the world’s most valuable mines.
Moreover, as you’re about to see, this exciting new Lion Discovery Zone is well over 5.5 kilometers along strike from Power Nickel’s existing resource, giving it truly remarkable upside potential if the company can “connect the dots.”
The best news for investors is that we are still in the early days — this discovery was announced just last month — so it’s possible to get in near the ground floor of what could be an historic discovery play.
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| Nisk: Home To A Lot Of Critical Metals
In A Great Jurisdiction
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| That discovery play is anchored by a very real optionality play on a well-defined deposit of nickel, copper, cobalt and platinum group metals in Quebec.
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| The Nisk project has been explored for more than 50 years and in December 2023, Power Nickel delivered its inaugural NI 43-101 resource estimate.
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| The known deposit at Nisk is a combination of open pit and underground mineable resources.
The open pit is home to 519,000 tonnes of 0.84% indicated nickel-equivalent, while the underground component hosts 4.9 million tonnes of 1.07% indicated nickel-equivalent along with 1.79 million tonnes of 1.35% inferred nickel-equivalent.
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| The information contained in the table above is derived from the technical report titled "Amended and Updated NI 43-101 Technical Report and Updated Mineral Resource Estimate for the Nisk Project, Eeyou Istchee James Bay Territory, Québec" dated November 2023. The key assumptions, parameters, and methods used to prepare the mineral resource estimates are set out in the linked technical report.
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| The Nisk project has a bevy of advantages thanks to its location in Quebec.
The province has generous tax credits that cover 50 percent of exploration and development costs.
Hydro power, a major highway, and a nearby town (plus a great relationship with the James Bay Cree, the local First Nation) make Nisk an extremely developable project.
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| The Advantage Of
North American Nickel
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| This resource makes for a valuable optionality play, not only because of its infrastructure advantages, but because of its North American address.
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| With the U.S. putting a premium on critical metals sourced from domestic and U.S.-friendly locales, Power Nickel’s Quebec-located sulphide nickel resource is in the sweet spot.
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| Another advantage: It’s a lot easier to produce battery-quality nickel for the EV trend from sulphide ore (as opposed to laterite ore).
Add in the Nisk deposit’s proximity to major car manufacturing centers, and you have a nickel hoard that is very much going to be on the industry’s radar.
That alone would make Nisk a compelling asset, but as mentioned, there’s now an exciting, extremely high-grade polymetallic discovery (with copper, silver, platinum group metals and gold) as part of the investment story.
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| The Lion Discovery Roars
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| Power Nickel has tagged into a near-surface target called Lion located a full 5.5 kilometers away from the main deposit at Nisk.
Recent assays from Lion have been highlighted by Hole 55, which returned 15.4 meters with eye-popping assays across an entire suite of metals: 0.44 g/t gold, 22.0 g/t silver, 5.06% copper, 13.1 g/t palladium, 3.35 g/t platinum and 0.15% nickel.
That’s 15.4 meters of 9.5% copper equivalent (“CEQ”).
So far, the Lion discovery has been traced for 225 meters in width and to 300 meters depth.
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| Other holes are building on this high-grade mineralization with remarkable consistency:
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- Hole 44 yielded 15.8 meters of 4.48% CEQ
- Hole 47 cut 14.4 meters of 12.14% CEQ
- Hole 48 hit 15.3 meters of 4.86% CEQ
- Hole 51 returned 11.4 meters of 9.14% CEQ
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| ...and on and on.
And it looks like there’s more to come.
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| The discovery zone remains open in all directions, including down-dip, and has been returning grades that suggest the target may host a mineralized collection of metals worth 10 times or more than typical producing mines.
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| Better still, it’s about to receive two more rounds of drilling, giving Power Nickel an ongoing discovery story that is just starting to capture the market’s attention.
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| Undervalued On Two Levels
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| The great news for those considering investing in Power Nickel is that the company is getting nowhere near full credit for its discovery at Lion, much less its large hoard of nickel-equivalent material.
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| The company is about to start drilling another 8,000 meters at Lion and will drill another 15,000 meters in the fall.
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| If you’re looking for potential analogies for this discovery, especially in light of how far it is stepped out from the known resource, Russia’s massive Norilsk nickel-palladium mine comes readily to mind.
Polymetallic mines like Norilsk are the most valuable in the world…indeed, Norilsk is the only $1 trillion-plus in situ value mine in global history.
There’s more work to be done at Nisk, but with upcoming drilling to follow Lion, down-dip higher-confidence drilling is about to follow up on substantial results.
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| In other words, Power Nickel is a big discovery play now — and one back-stopped by big value in an existing resource. So it’s the best of both worlds.
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| Some of the smartest mining investors in the world — companies like CVMR and billionaire mining investors like Rob McEwen — have made substantial investments in Power Nickel.
With drills about to start turning again on the exciting, high-grade Lion discovery zone, smart investors will waste no time looking into Power Nickel.
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