Power Nickel Inc.
Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold and battery metal prospects in Canada and Chile.
On Feb. 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80 per cent of the Nisk Nickel Project in Quebec from Critical Elements Lithium Corp.
Power Nickel (then called Chilean Metals) announced on June 8, 2021, that an agreement has been made to complete the 100 per cent acquisition of its Golden Ivan Project in the heart of the Golden Triangle. The Golden Triangle has reported mineral resources (past production and current resources) in total of 67 million ounces of gold, 569 million ounces of silver and 27 billion pounds of copper. This property hosts two known mineral showings (Gold Ore and Magee), and a portion of the past-producing Silverado mine, which was reportedly exploited between 1921 and 1939. These mineral showings are described to be polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold, and plus/minus copper.
Power Nickel is 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent net smelter return royalty interest on any future production from the Copaquire copper-molybdenum deposit, recently sold to a subsidiary of Teck Resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine in Chile's first region.
Nisk Project, Quebec, Canada
Power Nickel's flagship nickel project Nisk, located in the James Bay territory of Quebec, is well-placed to supply high-grade nickel to the growing North American market for lithium-ion batteries. With mineralizations for Nickel, Copper, Cobalt, Palladium and Platinum, Nisk is being developed to meet the demand for multiple battery metals.
The Nisk property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts. Power Nickel is focused on confirming and expanding its current high-grade nickel-copper PGE mineralization historical resource by preparing a new mineral resource estimate in accordance with NI 43-101, identifying additional high-grade mineralization, and developing a process to potentially produce nickel sulphates responsibly for batteries to be used in the electric vehicles industry.
3DGeo-Solution recommended an initial drill program of around 4,000 metres covering approximately 15 holes ranging in depth from 80 metres to 500 metres. This drill program has now commenced. Following the drill program, 3DGeo-Solution will be responsible to prepare the NI 43-101-compliant mineral resource estimate and technical report.
Nisk has four distinct target areas covering over seven kilometres of strike length. While nickel sulphate discoveries globally tend to come in clusters the focus of the initial Power Nickel campaign will be drilling on the Nisk Main target and the Nisk West target where the previous exploration had identified mineralized high-grade nickel zones. In the future, it is anticipated that Power Nickel will test the east and west Wildcat targets.
Power Nickel's chief executive officer and director, Terry Lynch, stated: "We are excited to be drilling. It is rare to find a project with a historical resource with an almost 2 per cent nickel equivalent (at current price nickel, copper, cobalt and palladium price curves – Oct. 29, 2021) that we believe has a credible chance to become a mine. The electrification movement in automobiles and industry is growing more and more every day and this growth will be very supportive to the nickel, copper, cobalt and palladium markets. We look forward to concentrating our efforts on Nisk and moving it from historical resource through the mine development process as quickly as possible. The drill program will take four to five weeks to complete and we would expect initial drill results in January, with the mineral resource estimate and the NI 43-101 technical report to be completed in Q1 or early Q2."
Demand for lithium-ion batteries currently consumes 8% of the 2.7 million tonne global nickel production. Only 42%, or 1 million tonnes, of this nickel is estimated to be suitable for the battery supply chain. With demand rapidly outstripping supply, Power Nickel is well-positioned to provide high-grade nickel suitable for the battery supply chain and help develop the next generation of electric technologies.
Management and Directors
Peter Kent, Chairman
Mr. Kent has over 25 years of business experience regarding complex business and legal affairs. Formerly with the TecSyn Group of Companies where he was Vice President, General Counsel and Corporate Secretary. He also was a corporate commercial lawyer at Bassel Sullivan.
Terry Lynch, BBA, Chief Executive Officer and Director
Prior to becoming a director with International PBX Ventures in 2012, Mr. Lynch had been CEO of privately held Nevada-focused Relief Gold. He also had been a director and later CEO of TSX-listed Firstgold Corp. Mr. Lynch was a partner with Kingsmill Capital Partners. Prior to joining Kingsmill Capital he spent 15 years operating startup companies in industrial products, oil and gas and media. Mr. Lynch is also currently a director and Co-Founder of Cardiol Therapeutics.
Greg McKenzie, LL.B, MBA, Director
Mr. McKenzie is a senior investment banker with 20 years of experience. His transactions are valued in excess of $18 billion. Mr. McKenzie has worked in New York and Toronto and has held positions with Morgan Stanley, CIBC World Markets, Haywood Securities and Salman Partners.
Les Mallard, BA, Director
Mr. Mallard has spent over 30 years in the Canadian Produce Industry employed in various capacities with Chiquita Canada and Chiquita Brands North America. Retiring from Chiquita in 2017, he has started Mallard Produce Solutions. He is on the Board of Directors for the Canadian Produce Marketing Association and Hydroponic Life.
Ximena Perez, Managing Director Chile
Ms. Perez has 13 years of experience in Chile as an exploration and production geologist. Experience in exploration consultancies for medium-sized mining, as well as independent work in resource inventories.
On October 18, 2022, Power Nickel Inc. announced that a proposed non-brokered private placement (the "Private Placement") of up to 10,000,000 flow-through units (each, an "FT Unit") of the Company at a price of $0.20 per FT Unit and up to 10,000,000 non-flow-through units (each, an "NFT Unit") of the Company at a price $0.10 per NFT Unit, for aggregate gross proceeds of up to CAD $3,000,000.
On October 06, 2022, As a result of a review by the staff of the British Columbia Securities Commission (BCSC), Power Nickel Inc. is issuing the following news release to clarify disclosures regarding its technical report on the Nisk project previously filed on SEDAR on Aug. 30, 2022.
The company is working to prepare an amended technical report. In addition to conducting the metallurgical analysis and the requirement for a new site visit to the Nisk project by an author of the amended technical report, the report will also include the results of the company's current drill program that is under way now and expected to be completed by mid-December, 2022.
The company does not yet know the definitive time frame to complete the amended technical report but believes a Q1 delivery date is probable.
On September 22, 2022, Power Nickel Inc. announced that the following up on the recent release of the National Instrument 43-101 technical report and mineral resource estimate (MRE) on the Nisk nickel project with the commencement of the second round of drilling. The NI 43-101 Technical Report and Mineral Resources Estimate for the Nisk Project was filed on SEDAR on August 30, 2022.
The Nisk Project is located in the southern portion of the Eeyo Istchee James Bay territory, Quebec, a region that is the site of a number of mining projects and improving infrastructure.
On August 30, 2022, Power Nickel Inc. has filed on SEDAR the technical report entitled "NI 43 101 technical report and mineral resource estimate for the Nisk project, Eeyou Istchee James Bay territory, Quebec." The technical report was prepared by 3DGeo Solution Inc. (3DGS) of Val d'Or, Que., to support the disclosure of the Nisk project 2022 mineral resource estimate on July 19, 2022. The technical report is available on SEDAR and will be made available on the company's website.
The mineral resource has been defined in both open-pit and underground mining scenarios. The combined estimated indicated resources is 2.6 million tonnes grading 1.20 per cent nickel equivalent (NiEq), using a base case cut-off grade of 0.33 per cent NiEq for open pit constrained resources and a base case cut-off grade of 0.91 per cent NiEq for underground constrained resources.
The combined estimated inferred resources is 1.4 million tonnes grading 1.29 per cent NiEq, using a base case cut-off grade of 0.33 per cent NiEq for open pit constrained resources and a base case cut-off grade of 0.91 per cent NiEq for underground constrained resources.
On May 04, 2022, Power Nickel Inc. has issued 5,557,125 shares as a result of a warrant exercise. The $833,568.75 was added to the capital of the company and will as announced finance the up-to-5,000-metre follow-up drill program on its promising Nisk nickel sulphide project south of James Bay, Quebec.
"We were very pleased with the drilling results at Nisk and are quite excited to be able to follow up our initial program with this new program in [second quarter] after breakup. We will continue to test the extension of Nisk Main and additionally several new target zones. Globally, these deposits tend to exist as pods or as a string of pearls, with each pearl representing a deposit. We believe this is what we have here at Nisk, and, with our actual understanding of the Nisk lithostructural setting, we can expect a well-planned drill program to help expand beyond our first pearl at Nisk Main to hopefully other pearls located in our project land package," commented Power Nickel chief executive officer Terry Lynch.
On March 30, 2022, Power Nickel Inc. and Critical Elements Lithium Corp. have released results from the third and final set of drill holes from its recent drill program at the Nisk nickel sulphate project near James Bay. These drill results confirm the presence of high-grade nickel mineralization in the eastern and central deep portions of the Nisk Main mineralized lens.
On March 24, 2022, Power Nickel Inc. has authorized a follow-up drill program to take place as quickly as permits and a diamond drill rig can be obtained, with the expectation that a 5,000-metre program can commence later in Q2 after breakup.
Power Nickel chief executive officer Terry Lynch commented: "The results we have obtained from our current round as identified in the table below when combined with the historical NI 43-101 mineral resource estimate are very encouraging. In a world that has woken up to a serious shortage of high-grade nickel sulphate projects, we are confident the Nisk project has great potential to play a significant role in providing Class 1 nickel in the most environmental, social and governance (ESG) friendly way to battery makers in North America and beyond."
On March 15, 2022, Power Nickel Inc. and Critical Elements Lithium Corp. have released results from the second set of drill holes from its recent drill program at the Nisk nickel sulphate project near James Bay. These drill results confirm (PN-21-003A) the presence of high-grade Nickel Mineralization in the central portion of the Nisk Main mineralized lens. In addition to the historic and previously released assays, these new results (PN-21-002) also demonstrate that higher grade mineralization extends by at least an additional 50 m at depth and to the southwest. It drilled 27.4m of 0.94% Ni.
On March 01, 2022, Power Nickel Inc. and Critical Elements Lithium Corp. have received initial results from a recent drill program at the Nisk nickel sulphate project near James Bay. These initial drill results confirm the presence of high-grade Nickel Mineralization in the north-eastern portion of the Nisk Main mineralized lens. Compared to the historical results, the results obtained also suggest that, within this portion of the Nisk Main lens, higher grade mineralization extends by an additional 150 m at depth and to the northeast. It drill 19.9 m of 0.7% Ni.
"We are very excited to begin to deliver our initial drill results at Nisk. The results showcase Nisk's potential to have a commercial high-grade Nickel Sulphate deposit. Our objectives in this initial drill program conducted by Power Nickel were to conduct enough drilling to allow us to establish a new NI 43-101 compliant resource to confirm and replace the historical resource, and to extend the known Nickel mineralization. We believe we have established the latter and expect to be able to deliver a NI 43-101 compliant Mineral Resource Estimate in Q2", commented Power Nickel's CEO Terry Lynch.
On February 2, 2022, Power Nickel Inc. has released assay results from its summer 2021 Golden Ivan property exploration. The highly successful 2021 prospecting and geologic mapping program has resulted in the discovery of two new high-grade gold zones, Lone Goat and Molly B East, yielding 16.2 grams per tonne gold and 15.1 g/t Au in outcrop.
The 2021 Golden Ivan property campaign completed during July and August, 2021, included the collection of 210 surface rock samples including seven channel samples, in addition to reconnaissance geologic mapping and whole-rock geochemical analysis throughout the property. A total of 17 of the 210 rock samples returned greater than 0.1 g/t Au, up to 16.2 g/t Au from the newly discovered Lone Goat showing and 15.1 g/t Au over 0.75 metre from a channel sample at the newly discovered Molly B East showing in addition to significant silver and base metal values.
On November 16, 2021, Power Nickel Inc. announced that it has commenced 4,000 metres drilling program on its Nisk Project.