Power Nickel Ramps Up Exploration at Flagship Nisk Project

• Power Nickel is developing the NISK nickel-copper project in Quebec, expecting to produce a 43-101 resource estimate by late October/early November showing 8-10 million tons at 1.5% nickel.
• Power Nickel has drilled about 177,000 meters and hit nickel in most holes, growing the resource significantly beyond the initial 4 million ton historical estimate. The company sees potential for 30+ million tons based on geological comparisons.
• Power Nickel has partnered with materials processing company CVMR Corporation, which invested $7.5 million for a 5-7% equity stake and will produce a feasibility study. This validates the project without sacrificing flexibility.
• In addition to expanding the NISK resource, Power Nickel sees exploration upside from prospective targets identified with geophysical surveys and ambient noise tomography.
• Power Nickel is also spinning out its Chilean copper-gold projects into a separate entity, providing upside for shareholders beyond the core nickel focus.

About Power Nickel

Power Nickel is a Canadian mineral exploration company focused on advancing its flagship Nisk nickel-copper project located in Quebec, Canada. The company is led by CEO Terry Lynch and is listed on the TSX Venture Exchange under the ticker PNPN.

Power Nickel acquired the past-producing Nisk project in 2018, which historically produced over 15 million pounds of nickel and 10 million pounds of copper from 1974 to 2013. Since acquiring the project, Power Nickel has conducted extensive exploration and drilling, significantly expanding the resource. The company is now working towards completing a 43-101 resource estimate in Q4 2023 that it expects will outline a resource of 8-10 million tons at over 1.5% nickel equivalent.

Interview with Terry Lynch, CEO of Power Nickel

New Drill Results Confirm Growth Potential

In a recent interview from the Precious Metals Summit conference in Beaver Creek, CEO Terry Lynch outlined the latest drill results from Nisk and the company’s plans moving forward. Over the past two years, Power Nickel has completed over 177,000 meters of drilling at Nisk, with around 55-60% of holes intersecting over 1% nickel. This includes a highlight intercept of 25 meters of massive and semi-massive sulfides from a 300 meter step-out hole, demonstrating the growth potential at depth and along strike.

According to Lynch, the upcoming 43-101 resource will increase the current 4 million ton historic resource to 8-10 million tons, with over 100,000 contained tons of nickel. The company sees this as sufficient to advance Nisk into production. However, Power Nickel believes the project could ultimately grow much larger, with additional exploration upside to increase the resource further.

The company has identified mineralization trends that extend for several kilometers through geophysics. Following up on these targets has the potential to discover additional “pods” of high-grade mineralization similar to the Nisk Main zone. Early exploration on some of these targets has already returned promising results.

Advancing Towards Production

To help advance Nisk through feasibility and into production, Power Nickel has partnered with CVMR. Under the agreement, CVMR will contribute C$7.5 million to earn up to a 5-7% stake in Nisk. More importantly, CVMR will fund and complete a feasibility study on the project.

CVMR is a global leader in niobium production and nickel processing, providing an ideal partner for Power Nickel. Securing this partnership and funding places Nisk on the path to production. The feasibility study will provide crucial economic analysis, while CVMR expertise will ensure an optimal development plan.

With the feasibility study nearing completion in early 2024, Power Nickel appears to have a clear timeline to production at Nisk. The study will incorporate the updated resource and extensive drilling data, providing investors with a definitive outlook for this promising nickel project.

Additional Projects Create Further Upside

Beyond Nisk, Power Nickel has exposure to copper-gold exploration through two other projects. In Chile, the company has assembled a large strategic land package covering over 15,000 hectares. Power Nickel also holds an overlooked but highly prospective gold-copper project in British Columbia’s Golden Triangle district adjacent to Pretium’s Brucejack mine.

Power Nickel is planning to spin-out these assets into a new exploration company in Q4 2023. This will allow the market to value them independently while allowing the company to focus efforts on advancing Nisk. However, Power Nickel will retain majority ownership in the new spin-out, providing shareholders continued upside from these assets as they are explored and advanced.

Conclusion

With extensive exploration confirming a significant nickel resource at Nisk, Power Nickel appears positioned to make the leap towards production in the coming year. The 43-101 resource expected in Q4 will be a crucial catalyst, while the feasibility study from strategic partner CVMR should clearly outline the economic potential of this project.

Between the advancing flagship at Nisk and additional upside from its copper-gold exploration portfolio, Power Nickel presents investors an attractive leverage to the battery metals sector. As Nisk moves down the development timeline towards production, Power Nickel’s valuation remains relatively discounted, providing an opportune entry point for investors before further resource expansion and economic studies catalyze a potential re-rating.