Power Nickel’s Lion discovery roars with expansion

Power Nickel (TSXV: PNPN) continues to expand the Lion discovery of May, with deeper drill holes proving the structure’s high-grade width of about 100 metres, the company said Tuesday.

Located 5 km northeast of the company’s main Nisk nickel-copper deposit in the Nemaska region of Quebec, the company has, since its discovery, drilled 15 holes into Lion. Results returned broad intercepts such as the May 21 result of 15.4 metres at 0.44 gram gold per tonne, 22.04 grams silver, 5.06% copper, 13.12 grams palladium, 3.35 grams platinum and 0.015% nickel in hole PN-24-055. The latest four holes add more perspective at depth.

Hole PN-24-059 returned a highlight intercept of 17.25 metres grading 0.66 gram gold, 27.2 grams silver, 3.33% copper, 2.04 grams palladium, 1.49 grams platinum and 0.18% nickel.

CEO Terry Lynch said the emerging zone had been “very productive” as the drills penetrated deeper.

“We are seeing the high-grade width of about 100 metres, and very mineable halos that extend 50-75 metres on either side continue at depth,” he said in a news release.

Power Nickel’s Lion Discovery showing completed and proposed drill holes for the upcoming summer program. Credit: Power Nickel

At around 69¢ apiece on Tuesday, shares in the Canadian explorer were up mor ethan 70% since the Lion discovery was first announced in early May. It has a market capitalization of $110.5 million. Shares are up about 183% over the past 12 months, having touched 18¢ and 73¢ apiece.

Early days

According to Power Nickel, hole PN-24-056 (on the east side) and holes PN-24-057 and PN-24-058 (on the west side) have been drilled through the thinner outer edges of the main mineralized zone, vice president for exploration Ken Williamson said in the statement. Hole PN-24-059 has drilled into the zone’s thicker, more central part.

“All information is good information at this point, and we are constantly learning more and more about this new polymetallic zone,” Williamson said.

Power Nickel will continue drilling at the Lion discovery this summer, following up on priority targets at holes PN-24-051 and PN-24-062, the deepest mineralized intersections to date.

The Nisk deposit was first discovered by Inco, now Vale (NYSE: VALE) in 1962. Power Nickel completed an 80% earn-in on Nisk from Critical Elements Lithium (TSXV: CRE) in April after filing a resource estimate in November.

The project hosts underground resources of 4.9 million indicated tonnes grading 0.78% nickel, 0.05% cobalt, 0.42% copper and 0.78 gram palladium for 38,300 tonnes nickel, 2,400 tonnes cobalt, 20,500 tonnes copper and 123,100 tonnes palladium.

Open pit resources total 519,000 indicated tonnes at 0.63% nickel, 0.04% cobalt, 0.3% copper and 0.56 grams palladium for 3,300 tonnes nickel, 200 tonnes cobalt, 1,600 tonnes copper and 9,400 tonnes palladium.