Power Nickel Looks to Become Canada's Next Nickel Sulfate Producer

• Terry Lynch, CEO of Power Nickel, discusses the company's progress on the NISK nickel sulfide project near James Bay, Quebec.
• The company is looking to update their 43-101 in Q2 and has been actively drilling since mid-September with positive results.
• Power Nickel has a historical resource of 3.1 million tons from 2006 and aims to reach a threshold of eight million tons to ensure economic viability.
• The company sees Quebec as a favorable jurisdiction for its operations, and its stock is perceived as undervalued compared to other nickel opportunities.

About Power Nickel

Power Nickel (YSX-V: PNPN) is a Canadian junior exploration company focused on developing its high-grade Nisk nickel project in Quebec into Canada’s first carbon neutral nickel mine. The company acquired an option to earn up to 80% interest in the Nisk project in early 2021 and has actively been exploring the property. With over 20km of strike length, Nisk has significant potential to become a world-class nickel sulfide deposit. Beyond Nisk, Power Nickel holds other exploration assets in Chile and British Columbia.

With drilling ongoing and assay results pending, the company aims to update its resource estimate in Q2 2023 as it works towards building Canada's next nickel sulfate mine.

Interview with Chief Executive Officer, Terry Lynch

Drilling Program Update

In a recent interview, Power Nickel CEO Terry Lynch provided updates on the company's exploration program and path forward. Lynch highlighted that the company has been drilling at NISK since mid-September 2022, with great results so far. With about 6,000 meters drilled in 14 holes during Phase 2, assay results for 9 holes are still pending. Based on lab timelines, Lynch expects a new batch of assays every 3-4 weeks over the next few months.

Phase 3 drilling started this January, with a plan to drill 10,000 meters through spring 2023. This will bring the total meters drilled to about 15,000. The final metallurgical report is expected by end of April, which will provide the last data needed to update the resource estimate and feasibility study in Q2 2023.

Exploration Potential

Historically, the NISK deposit hosts about 1 million tons of nickel mineralization. However, Power Nickel sees exploration potential for up to 8-10 million tons, which Lynch notes is often the threshold for economic viability in new nickel sulfide mines. With only about 40% of the property explored so far, the company is actively looking to define extensions of the known mineralization.

Some recent highlight drill results include an intercept of 40 meters at 1.2% nickel, more than double the initial 25-meter intercept from the hole. This demonstrates the exploration potential even within areas that have seen some previous drilling.

Innovative Exploration Techniques

With its experienced technical team, Power Nickel is also utilizing some innovative exploration techniques to target new mineralized zones. This includes an artificial intelligence approach to analyze seismic data and historical drilling logs to identify signatures corresponding to massive sulfide deposits. The goal is to zero in on the most prospective areas for the next phase of drilling.

Funding Outlook

On the financial side, the company has sufficient capital to complete the current 15,000 meter drill program. Looking ahead, Lynch expects additional funding will be required later in 2023 to support an expanded program. However, he highlights that Quebec's attractive flow-through share program allows companies to pre-sell shares at a discount to investors and use the proceeds for exploration spending. This provides built-in funding at minimal dilution, benefitting both the company and investors.

5 Key Takeaways for Investors

1. Advancing the NISK nickel project in Quebec with the goal of building Canada's next nickel sulfate mine to supply the EV battery market.
2. Active drilling program ongoing, with assay results pending that could demonstrate resource expansion potential.
3. Exploration upside remains, with only 40% of the property explored so far. Utilizing innovative techniques like AI to identify new targets.
4. Well-funded for current drill program. Quebec's flow-through share program provides cost-effective access to future capital.
5. Significant leverage to nickel demand growth expected from the surging EV industry. NISK has potential to become a world-class nickel sulfide deposit. Early days still for this emerging nickel player.

Investment Thesis

With nickel demand growth expected from the EV battery sector, Power Nickel aims to establish itself as a key future supplier of nickel sulfate. The NISK deposit offers significant exploration upside and potential to grow into a world-class asset. As ongoing exploration continues to prove out the resource, Power Nickel presents an attractive investment opportunity in the nickel space. Investors interested in the electric vehicle and battery metals story should keep an eye on this emerging nickel player.