Power Nickel

Overview

As a historically Chilean focused company, Power Nickel (TSXV:PNPN) has since been reshaped into a multi-project junior miner following two substantial acquisitions announced in 2020. To date, Power Nickel has an advanced, high-grade nickel-copper-cobalt-PGE in the James Bay Area. The NISK deposit is a very interesting Golden Ivan project in the heart of the Southern portion of the Golden Triangle.

Power Nickel is currently advancing the Nisk nickel sulphide project, comprising a large land position (20 kilometers of strike length) with numerous high-grade intercepts for multiple battery metals, including copper, cobalt, palladium, platinum and Class-1 nickel.

Company Highlights

• Power Nickel is a mining exploration company with assets in Chile (Tierra de Oro and Zulema) and British Columbia, Canada (Golden Ivan). The company receives 3 percent NSR royalty for its Copaquire deposit, which sold for more than C$3 million.
• The company’s wholly owned Tierra de Oro and Zulema projects are located within Chile’s prolific iron-oxide-copper-gold (IOCG) belt, which hosts a number of significant copper-gold deposits.
• The company acquired 100 percent of the Golden Ivan property located within British Columbia’s world-class Golden Triangle.
• Power Nickel has filed an NI 43 101 technical report and mineral resource estimate for the Nisk Project, located in Eeyou Istchee James Bay territory.
• The company announced a new, fully funded 5,000 meter drill program after reporting high grade results at Nisk.
• Power Nickel and Critical Elements Lithium Corporation confirmed the presence of high-grade nickel mineralization in the central portion of the Nisk Main mineralized lens.

Key Projects

Nisk

Located in the James Bay region of Quebec, this high-grade nickel-copper-cobalt-PEG project with a historical resource of over 3 million tonnes was optioned from Critical Elements Lithium Corporation (TSXV:CRE). In 2021, Power Nickel received the TSXV conditional approval to acquire 80 percent of the NISK property.

Previous Work

The NISK-1 property hosts a nickel showing discovered and evaluated by INCO and its subsidiary, Nemiscau Mines, from 1962 to 1969. At the time, the Nemiscau area was very remote and INCO had large quantities of high-grade nickel ore in the Sudbury, Ontario area, so the property was abandoned.

From 1987 to 1988 Muscocho Explorations Ltd completed surficial explorations that included an airborne VLF-EM and total magnetic field geophysical survey, collection and analysis of surface rock samples, and completed diamond drilling of 16 holes totalling 1,843 m at the NISK-1 showing.

From 2006 to 2008, Golden Goose Resources completed further surficial explorations that included an airborne AeroTEM 2 – EM and magnetometry geophysical survey, and a ground TEM geophysical survey. Golden Goose Resources also completed diamond drilling of 63 holes totaling 13,088 m at the NISK-1 showing.

These 63 holes were utilized to develop an NI 43-101 mineral resource. The resource estimation was completed by RSW INC and is detailed in their report entitled, “Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec. Dated December 2009. The 2009 resource estimation is considered to be a ‘historical estimate’ as defined by the National Instrument 43-101 Standards of Disclosure for Mineral Projects

The historical resource estimation culminated in the definition of nickel, copper, cobalt, palladium, platinum resources, containing measured, indicated and inferred confidence categories as described in Table 1 below. The simplified sectional resource is developed along single, continuous, drill hole intersections, developed with a cut-off grade of 0.4 percent nickel over a minimum width of 0.5 meters, within estimation blocks measuring up to 75 meters along respective sections to define the nickel-bearing zone.

The information regarding the NISK-1 deposit was derived from the technical report titled “Resource Estimate for the NISK-1 Deposit, Lac Levac Property, Nemiscau, Québec” dated December 2009. The key assumptions, parameters and methods used to prepare the mineral resource estimates described above are set out in the technical report.

Future Work

After filing the NI 43-101 technical report for the mineral resource estimate of the Nisk Project, Power Nickel plans to commence Phase 2 drill program on the project for up to 7,000 meters, and further initiate the Phase 3 drill program for up to 15,000 meters.

Golden Ivan

The Golden Ivan property is situated toward the south of British Columbia’s prolific Golden Triangle, which hosts numerous profitable mineral deposits and is known to be highly prospective for large-scale mineral systems, including large-scale porphyry systems, high-grade gold and silver veins, and volcanogenic massive sulphides. The Golden Triangle is host to past and current mining operations including Pretium, Eskay Creek, Johnny Mountain, Red Mountain, Snip Mine, Premier Mine, Golden Bear and Valley of the Kings. The area has reported mineral resources (past production and current resources) in total of 67 million ounces (Moz) of gold, 569 Moz of silver and 27 billion lbs of copper.

The Golden Ivan property is located approximately 15 kms south west of the Red Mountain gold/silver deposit and 30 kms south of the historic Premier gold mine which just announced construction financing being completed to place this past producer again into production. Immediately to the south of the property, significant silver resources have recently been established at the Porter-Idaho deposit, along several mineralized veins that strike onto the Golden Ivan property.

Exploration Update

Power Nickel reported the assay results from its summer 2021 Golden Ivan Property exploration indicating highly successful prospecting and geologic mapping program. The results included the discovery of two new high-grade gold zones yielding 16.2 grams-per-tonne (g/t) gold and 15.1 g/t gold in outcrop.

Projects in Chile

Chile’s prolific Atacama iron-oxide-copper-gold (IOCG) belt hosts a number of significant copper-gold deposits, including Mantos Blancos, Manto Verde and Candelaria. The Candelaria deposit, owned by Lundin Mining (TSX:LUN), has produced 470 Mt at 0.95 percent copper, 0.22 g/t gold and 3.1 g/t silver. It is currently the world’s second-largest iron-oxide-copper-gold deposit.

Power Nickel’s wholly owned 5,600-hectare Tierra de Oro and 4,300-hectare Zulema projects are located within the belt. Zulema is located just 30 kms from the Candelaria deposit, with which it shares similar geography.

Previous exploration data generated by both the company and other historic operators have been compiled and 8,660 training points were subjected to evaluation by Windfall’s proprietary CARDS AI model. CARDS uses data mining techniques to analyze compiled exploration data and to identify area target zones with high statistical similarity to known “signatures” of areas of copper, gold and silver mineralization (Figures 3 and 4 below). A total 13 prospective target zones were identified by the prediction analysis, of which the company has elected to drill-test two of the zones.

• The ‘Chanchero’ Zone has previously been identified as prospective for copper porphyry-style mineralization and remains untested. The area comprises a 0.75-square-kilometre zone of argillic and quartz-sericite-pyrite alteration hosted by augite-hornblende diorite to granodiorite with roof pendants of hornblende monzonite. A significant colour anomaly is also evident. The area was surveyed by 3-D induced polarization (IP) methods in 2008 and generated a chargeability anomaly greater than 50MV/V at its core which is open at depth. The area is to be the focus of four (4) core holes that are proposed to intersect the chargeability anomaly longitudinally and at depth.

• The ‘Iron Skarn’ zone is an AI-generated target gold anomaly which occurs along a pronounced structure and is located along strike from existing shallow artisanal gold workings. A single core hole is to be orientated to intersect the structure at depth below the projected level of the adjacent historical workings.

In addition to the drilling program, the company intends to complete a systematic sampling program over the remaining target areas identified by the AI analysis. Limited ground truth sampling on three of the AI targets produced sample results including 10.32 and 5.79 g/t gold at the cobalt zone, and another series of nine samples that graded between 0.77 percent to 3.23 percent copper. In addition to wider surface sampling in areas where no surface indications are visible, the company plans to conduct localized IP.

All three of the company’s projects benefit significantly from exceptional infrastructure and access.

Management Team

Peter Kent - Chairman

Peter Kent was formerly with the TecSyn Group of Companies, at which he was vice-president, general counsel and corporate secretary. Kent brings over 25 years of business experience in complex business and legal affairs. In addition to his time at Tecsyn, Kent was also a corporate commercial lawyer at Bassel Sullivan, a Toronto-based boutique law firm.

Terry Lynch - CEO

Terry Lynch graduated in 1981 from St. Francis Xavier University with a joint honours degree in economics and BBA. Prior to becoming a director with International PBX Ventures in 2012, 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. He assumed the CEO position after the company had run into financial difficulty bringing its Relief Canyon mine into production. He arranged a sale of 51 percent of the company for a total capital injection of $26.5 million from Northwest Non-Ferrous Metals, one of China’s largest mining engineering and consulting groups.

From 2005 to 2008, Lynch was a partner with Kingsmill Capital Partners, a financial advisory firm specializing in advising public and private early stage growth companies. Prior to joining Kingsmill Capital, he spent 15 years operating startup companies in industrial products, oil and gas and media. Lynch is currently a director and co-founder of Cardiol Therapeutics.

Greg McKenzie - Director

Greg McKenzie is a senior investment banker with 20 years of experience in financing, M&A, financial advisory, valuation and strategic advice primarily to mid-cap companies. His transactions are valued in excess of $18 billion. McKenzie has worked in New York and Toronto and has held positions with Morgan Stanley, CIBC World Markets, Haywood Securities and Salman Partners. While at these firms, McKenzie advised management and boards of companies in various sectors including: metals and mining, industrials, consumer products, technology and healthcare. McKenzie was also called to the bar in New York and Ontario and practiced law with a leading Canadian securities and M&A law firm.

Ximena Perez - Managing Director of Chile

Ximena Perez has 13 years of experience in Chile as an exploration and production geologist, the first five years of which she spent as a production geologist in underground mining in Cu. She developed a career as an exploration geologist with extensive experience in drilling program supervision, data management and geological modeling. She participated in the exploration for the expansion of Skarn Las Cenizas (Cu-Ag), Talcuna (stratabound and veins Cu-Au), Punitaqui (stratabound and veins Cu-Ag-Au) and Dayton (epithermal of Au), in the latter two as Chief Exploration Geologist.

Perez has experience in exploration consultancies for medium-sized mining, as well as independent work in resource inventories. She has served as exploration geologist for Chilean Metals Inc., and since 2018 she has been managing director Chile in the company.

Les Mallard - Director

Les Mallard is a graduate of The University of Prince Edward Island with a BA in economics. He has spent over 30 years in the Canadian produce industry employed in various capacities with Chiquita Canada and Chiquita Brands North America. After retiring from Chiquita in 2017, he started Mallard Produce Solutions, a produce consulting company focused on providing North American and Latin American clients with business solutions to expand their market potential. Mallard is also on the board of directors for the Canadian Produce Marketing Association and Hydroponic Life.