Power Nickel - Extraordinarily High-Grade Polymetallic Results Reveal Potential World-Class Discovery

• Power Nickel has made a significant polymetallic discovery at its NISK project in Quebec, with very high-grade nickel, copper, PGM, gold and silver in the Lion Zone.
• Grades have been as high as 30% copper equivalent over substantial widths. The Lion Zone starts at surface and extends at least 275m deep and 100m wide so far.
• The company believes there are likely multiple high-grade shoots that could be connected to the main NISK nickel sulfide body 5-12km away.
• Power Nickel is conducting metallurgical work with leading nickel refiner CVMR to potentially produce high-value nickel powder rather than just a concentrate.
• The company is well-funded to aggressively drill the Lion Zone this year with the goal of defining a multi-million ounce resource by summer. Major mining financiers have invested in the company.

Power Nickel (PNPN) is a Canadian junior mining company that has made a potentially game-changing discovery at its NISK project in the mineral-rich Abitibi region of Quebec. The recent uncovering of the Lion Zone - an extremely high-grade polymetallic zone rich in nickel, copper, platinum group metals (PGMs), gold and silver - has transformed the project and attracted the attention of major mining investors. With aggressive drilling underway to expand the discovery, Power Nickel offers speculative investors compelling potential for outsized returns.

The Lion Zone Discovery

The Lion Zone discovery has rapidly emerged as the centerpiece of the NISK project. Drill results have been spectacular, with numerous holes returning grades in the range of 3-30% copper equivalent over substantial widths.

CEO Terry Lynch highlighted the impressive nature of the discovery:

"We've been getting stuff like honestly from 3% to 30% copper equivalent, so I mean it's mind mind-blowing. We've got probably half a dozen holes of, call it 10% copper equivalent over big sections, 10-15m."

Critically, the mineralization begins right at surface and has been defined so far to a depth of 275m. The main zone is about 100m wide, with an additional halo of 50-75m on either side that is expected to be economic to mine as well.

While still early days, the company estimates the Lion Zone could already host a couple million tonnes of very high-grade material. But the potential is likely much larger. Based on the geological setting and advice from a world-renowned polymetallic expert Dr. Steve Beresford (formerly with First Quantum and MMG), the company believes there are likely multiple high-grade shoots that could form part of a much more extensive mineral system.

"Dr. Beresford's view on this is that his operating thesis would be our main body, which is the nickel sulfide, called NISK Main, is 5-12 km to the southwest. He believes it's connected, his thinking is there's a nickel sulfide sort of oven, and that acts as sort of the furnace, and then some hydrothermal fluids came by - and in these fluids were the copper and the gold and the silver - and then it went up in almost like a geyser-like format and pulsed. And just kept on pulsing until it ran out of energy. And that's why these shoots are super rich."

Interview with Chief Executive Officer, Terry Lynch

Metallurgy & Processing Optionality

In addition to drilling to expand the Lion Zone, Power Nickel is already thinking ahead to processing and production. The company is working with CVMR, the largest private nickel refinery in the world, on metallurgical testing.

The goal is to upgrade the expected nickel sulfide concentrate into a high-purity nickel powder that could be sold at a substantial premium to standard nickel concentrate. CEO Lynch explained the economics:

"If you sell a concentrate you're getting $20,000 or thereabouts a ton. Nickel powder is $60-80,000/t. So for an extra $4,000 or so [in processing costs], you're really making a lot more margin."

Having CVMR as a partner provides huge benefits to Power Nickel. CVMR has the technical expertise to optimize the flowsheet and also the financial capacity to potentially debt finance a future mine and refinery build. This could allow Power Nickel to retain maximum ownership of the project while still moving it quickly towards production.

Well-Funded to Create Value

After years of a brutal bear market, funding for junior mining companies is starting to loosen up. Power Nickel has taken full advantage and is very well capitalized to aggressively advance the NISK project.

The company recently raised $2M and has been receiving proceeds from in-the-money warrants. An additional $4M of warrants remain outstanding that the company expects to be exercised. Quebec's flow-through tax credit system allows the company to issue shares at a premium, providing a strong incentive for investors.

Power Nickel also benefits from a very strong shareholder base, with at least 11 billionaires invested in the company. Major mining investors like Robert Friedland have taken substantial positions, providing important validation and financial firepower. The company is looking to bring in additional large mining financiers to help boost the company's profile even further.

Exploration Plans & Upcoming Catalysts

Power Nickel is embarking on an ambitious exploration program at NISK in 2024. The company is about to commence a $2.4M, 10,000m drill program focused on the Lion Zone. The goal is to establish the Lion Zone as a multi-million ounce gold equivalent discovery and lay the groundwork for an initial resource estimate.

CEO Lynch laid out some of the exploration targets:

"If convention holds and it's like 8 to 10 times the width, then you'd probably get to like 3 million ounces by the summer."

In addition to drilling, the company will be conducting downhole geophysics to detect additional high-grade shoots and working with CVMR to optimize the metallurgy. Investors can expect a steady stream of drill results and other key catalysts over the next 6-12 months.

Conclusion

Power Nickel offers investors a unique opportunity to gain exposure to an emerging world-class polymetallic discovery in a top mining jurisdiction. The company's NISK project in Quebec has already delivered some of the highest-grade nickel/copper/PGM/gold/silver drill intercepts in recent memory at the newly discovered Lion Zone.  

With a strong treasury, a top-tier shareholder base, and an aggressive exploration program about to commence, Power Nickel is well positioned to create substantial value for investors in the near-term. If the company is successful in its goal of outlining a multi-million ounce gold equivalent resource at the Lion Zone this year, the stock will likely trade multiples higher. Speculative investors should take a hard look at this compelling discovery story.

The Investment Thesis for Power Nickel

• Potential for multi-million ounce, very high-grade polymetallic discovery at Lion Zone in Quebec. Drill results up to 30% copper equivalent.
• Low-risk jurisdiction and ability to quickly permit and develop a mine. Excellent infrastructure.
• Partnership with top nickel refiner CVMR could allow upgrading to high-purity nickel powder, providing huge margin boost.
• Very strong shareholder base including major mining billionaires. Access to capital and mining expertise.
• Tight share structure and low market cap (~C$30M) provides substantial leverage to drilling success. Company is targeting a 3Moz resource this year.

Macro Thematic Analysis

The long-term demand outlook for critical minerals like nickel, copper, and PGMs is extremely robust, driven by the unstoppable trends of decarbonization, electrification, and the energy transition. At the same time, the supply side is severely challenged due to years of underinvestment and a lack of new discoveries. Development of new mines in top jurisdictions like Canada will be essential to meet soaring demand and prevent crippling deficits. In this context, companies like Power Nickel that can make new discoveries and quickly advance them to production should be poised to create substantial shareholder value in the years ahead.

Power Nickel's NISK project has been transformed by the very high-grade Lion Zone polymetallic discovery. Drill results have been exceptional and the company will be very aggressively exploring this target in 2024 with a goal of outlining a multi-million ounce resource. The company is well-funded and has attracted an impressive shareholder base.