Power Nickel Inc. [PNPN-TSXV, CMETF-OTCQB] and Critical Elements Lithium Corp. [CRE-TSXV, CRECF-OTCQX, F12-FSE] have released a NI 43-101-compliant resource estimate for the Nisk nickel sulphate project near James Bay, Quebec
Back in February, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium.
The Nisk property consists of a large land position (20 kilometres of strike length) with numerous high-grade intercepts. The resource estimate announced Tuesday is based on historical drill results and a 2,400-metre program completed in December, 2021.
The company has announced a combined open pit and underground resource of 2.58 million tonnes of 1.20% nickel equivalent (NiEq) or 31,000 tonnes (of which 23,200 tonnes an underground resource) in the indicated category. On top of that is an inferred resource of 1.4 million tonnes of grade 1.29% NiEq or 18,100 tonnes (of which 17,400 is an underground resource).
As of May 17, 2022, the company said its database included 66 drill holes (59 historic and 7.0 recent 2021 drill holes) totalling 14,266 metres of drilling.
On Tuesday, Power Nickel shares advanced on the news, rising 5.0% or $0.005 to 10.5 cents on volume of 419,590. The shares are currently trading in a 52-week range of 30 cents and $0.095.
Critical Elements shares rose 2.4% or $0.03 to $1.29 in light trading and currently trade in a 52-week range of $1.98 and $1.13.
“Power Nickel was extremely pleased with the inaugural mineral resource estimate,’’ said Power Nickel CEO Terry Lynch. He said the company believes Nisk has significant commercial potential. “The resource update has clearly indicated some additional infill drilling is needed and these holes are now in process of being permitted as part of our upcoming fully funded drill program,’’ he said.
“We already have permitted several drill targets to the flanks of the current deposit designed to extend the deposit and test new potential pods for additional resources,’’ he said.
Historically, nickel sulfide deposits don’t exist in isolated solo deposits, but typically have a string of pearl formation where multiple pearls or pods of resources are congregated in a close geographic area, the company said.
“The next round of drilling will focus on infill drilling targets as outlined by the mineral resource estimate and on this search to extend discover new nickel pods,’’ Lynch said. “We expect drilling to commence in August and be completed in September,’’ he said.
Power Nickel owns a 3.0% NSR royalty interest in any future production from the Copaquire copper-molybdenum deposit, which was recently sold to a subsidiary of Teck Resources Ltd. (TECK.B-TSX, TECK.A-TSX, TECK-NYSE). The property border Teck’s producing Quebrada Blanca copper mine in Chile.
Under the terms of the sale agreement, Teck can acquire one third of the NSR for $3 million at any time.