Power Nickel up 14% on Quebec drill results
Power Nickel Inc. [PNPN-TSXV, CMETF-OTCQB] shares rallied Tuesday after the company released drilling results from its Nisk nickel sulphate project near James Bay, Quebec
“The results showcase Nisk’s potential to have a commercial high-grade nickel sulphate deposit,” said Power Nickel CEO Terry Lynch. “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,” Lynch said.
“We believe we have established the latter and expect to be able to deliver a NI 43-101-compliant mineral resource estimate in Q2,” he said.
On Tuesday, Power Nickel shares jumped 14.3% or $0.035 to 28 cents on volume of 795,360, and now trade in a 52-week range of 42.5 cents and 11.5 cents.
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 Corp. [CRE-TSXV, CRECF-OTCQX, F12-FSE].
On Tuesday, Critical Elements shares eased 1.6% or $0.02 to $1.20 on volume of 122,510. The shares are trading in a 52-week range of $1.98 and $1.13.
Power Nickel is the 100% owner of five properties covering over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile
The Power Nickel portfolio also includes a 100% interest in the Golden Ivan project, which is located in the heart of British Columbia’s Golden Triangle region.
The Nisk property consists of a large land position (20 kilometres of strike length) with numerous high-grade intercepts. Back in November, 2021, the company launched a 4,000-metre drill program covering approximately 15 holes. These holes were expected to range in depth from 80 to 500 meters.
The company said it planned to probe four distinct target areas, covering over 7.0 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 Nisk West target where previous exploration had identified mineralized high grade nickel zones.”
On Tuesday, the company said these initial drill results confirm the presence of high-grade nickel mineralization in the north-eastern portion of the Nisk Main mineralized lens.
Drilling highlights include 19.9 metres of 0.7% nickel, 0.61% copper, 0.04% cobalt, 0.81 g/t palladium, and 0.39 g/t platinum.
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.