Power Nickel Drills Massive Copper-Nickel-PGM Lion Zone Discovery in Quebec

• Power Nickel made a massive polymetallic discovery at its NISK project in Quebec with high-grade nickel, copper, PGMs, gold and silver.
• The discovery hole hit 1.5% copper and nearly 1 oz/ton PGMs over 8 meters, and subsequent drilling returned intersections up to 32m of 7% copper equivalent.
• The company raised C$20 million from billionaire mining investors including Robert Friedland and attracted interest from majors.
• Drilling is ongoing with 3 rigs to expand the resource, with a goal of delineating 15-20 million tons at 5-12% copper equivalent.
• For every ton of copper, the CEO expects 2-7 tons (avg. 5 tons) of nickel sulfides based on typical ratios for this style of orthomagmatic deposit.

Power Nickel (TSXV:PNPN) is attracting attention from billionaire mining investors and major companies following a major polymetallic discovery at its NISK project in the James Bay region of Quebec. The NISK project was originally a high-grade nickel sulfide play with 7.1 million tons grading 1.13% nickel in the Main zone. However, stepping out along the untramafic sequence 5.5 km to the northwest, the first hole at the Lion Zone hit a massive sulfide discovery of 1.5% copper and nearly 1 oz/ton platinum group metals (PGMs) over 8 meters. Subsequent drilling has expanded this zone to over 500 meters strike length and 500-600m depth, with some exceptional drill results including 32m of 7% CuEq and 40m of 5% CuEq.

High-Grade, Near-Surface Discovery

CEO Terry Lynch commented in an interview:

"People are losing the plot here. This is going to be big. This is how these orthomagmatic things come. In the history of the earth, for every ton of copper sulfide you find, you find between 2 and 7 tons of nickel sulfides underneath, with an average of around five. If we find 10, 15, 20 million tons of copper sulfide, ordinarily one would expect somewhere between 40 to 100 million tons of nickel sulfide. It's going to be big."

Analysts estimate the Lion Zone already contains 5-7 million tons grading 5-7% copper equivalent, and that's just scratching the surface according to the company. Power Nickel's 30,000 meter drill program aims to expand that to 15-20 million tons in 2025. The mineralization starts at surface and remains open in all directions.

Interview with CEO Terry Lynch

Major Backers

The impressive drill results have attracted an all-star cast of billionaire mining investors and interest from major mining companies. In June 2024, the company raised C$20 million in a financing anchored by mining magnate Robert Friedland, who invested half the total. Lynch noted he frequently exchanges ideas with Robert Friedland and Rob McEwen, another billionaire backer.

"We started to attract some smart mining guys," Lynch said. "Half of [the $20M financing] was taken by Robert Friedland, and then Rob [McEwen] took another 20% and we had three mining funds take the balance. Also Gina Rinehart played a big role and really drove the stock from 40 cents to 90 cents with her purchases."

Interest is also high from major mining companies. Power Nickel had as many meetings with industry players as investors at the Beaver Creek precious metals conference. The company is keeping them apprised of their progress.

Path to World-Class Discovery

Power Nickel plans on a 30,000 meter drill program in 2025 to expand the Lion Zone discovery. Three rigs are turning now with assays pending from the first few holes reported in December. The drills will keep turning until April, and the company expects a steady flow of results starting in January.

Metallurgy will be key to realizing the value of this unique polymetallic deposit. Power Nickel is already working on it and expects to report results in the second half of 2025. The company is investigating multiple processing options and CEO Lynch is optimistic about achieving good recoveries based on discussions with Robert Friedland, who has extensive experience with similar deposits in South Africa. Power Nickel also benefits from strong support from the Quebec government and the local First Nations who are keen to see this discovery turned into an operating mine.

Lots of Upside

Analysts ascribe a value around C$100 million to the initial Lion Zone discovery. However, the blue sky potential is much higher if this proves to be a world-class nickel-copper deposit in the tier of other orthomagmatic giants like Norilsk or Voisey's Bay. Lynch would not speculate on a future takeover, but was frank that "We'll be working with [major miners] in one way, shape or form" at some point.

Shares of Power Nickel soared from 10 cents to as high as C$1.16 in 2024, but have pulled back in the current tough market for junior miners. Lynch thinks the market is missing the longer-term potential.

"This year we did a 4-bagger. I would be very disappointed if we did less than that next year. All great deposits get paid and this will be a great deposit. We will get paid, so you know, we'll work our way through the shorts and through all those other guys and ultimately, you know, we'll get our shareholders what they deserve."

Power Nickel's Lion Zone discovery has the potential to rival some of the world's great nickel-copper sulfide deposits. The initial resource already ranks as one of the highest grade nickel-copper discoveries in recent memory, and aggressive drilling in 2025 could vault it into the world-class category. The support of billionaire mining investors and interest from major companies provides strong validation of the discovery. Key catalysts to watch will be ongoing drill results and the metallurgical studies later in 2025. If the met work confirms good recoveries, Power Nickel could be on track for a 10-bagger or more.

Investment Thesis for Power Nickel

• Power Nickel offers exposure to a potential world-class nickel-copper-PGM discovery in a top mining jurisdiction
• Exceptionally high grades (5-7%+CuEq) and near-surface mineralization make for compelling economics
• Backed by billionaires Friedland, McEwen and Rinehart; attracting interest from major miners
• C$10M funding for aggressive 30,000m drill program to expand and delineate the discovery in 2025
• Metallurgical testwork is the key catalyst; good recoveries could unlock tremendous value
• Has 10-bagger or more potential if Lion Zone proves up as a giant orthomagmatic deposit

Macro Thematic Analysis

Demand for critical minerals like nickel and copper is soaring as the world electrifies everything from vehicles to renewable power. The last great nickel-copper sulfide discovery was Voisey's Bay in the 1990s. Majors are hungry for new deposits to feed their growth, but there are precious few good ones left to buy. Nickel is a key component in the lithium-ion batteries powering electric cars, while copper is essential for all things electric. Meanwhile, supplies of these metals are dwindling as new discoveries become increasingly rare and existing mines deplete.

"All great deposits get paid and this will be a great deposit," Power Nickel CEO Terry Lynch affirmed. "Our shareholders will get what they deserve."

With a monster discovery shaping up, a strong Quebec address, and lots of news flow on tap, Power Nickel has all the ingredients to charge up your mining portfolio. Drill results and metallurgy news in 2025 could provide the jolt to power shares significantly higher.