Power Nickel (TSXV: PNPN) has reported more high-grade drill results from its recent Lion discovery in its Nisk project in Quebec, sending its shares nearly 13% higher to C$0.70 apiece.
Drill hole PN-25-055 returned 15.4 metres of 0.44 gram gold per tonne, 22.04 gram silver, 5.06% copper, 13.12 grams palladium, 3.35% platinum and 0.015% nickel (9.5% copper equivalent) from 75.5 metres depth.
The intersection contained 5.1 metres of 0.61 gram gold per tonne, 50.29 grams silver, 13.27% copper, 24.62 grams palladium, 6.73 grams platinum and 0.33% nickel.
In turn, that section contained 3.4 metres of 0.7 gram gold, 60.36 grams silver, 17.26% copper, 25.02 grams palladium, 3.61 grams platinum and 0.37% nickel.
“This is a special discovery. These are big intersections to be that high grade and we are seeing a pattern here,” Power Nickel CEO Terry Lynch said in a release. “This intersection is in the high-grade wheelhouse that is plus or minus 100 metres wide and seems to have a prospective mineralized halo around it of 50-70 metres.”
Power Nickel completed 15 holes at Lion as part of its winter drill program; its summer drill program will continue at Lion to follow up on these holes, which mark its deepest discovery thus far.
In April, Power Nickel completed an 80% earn-in on Nisk from Critical Elements Lithium (CRE: TSXV), 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, 0.78 gram palladium per tonne 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.
Power Nickel first optioned the project, located in the James Bay region of Quebec, in 2021. The company is targeting the creation of a carbon neutral nickel mine by sourcing hydroelectric power from Hydro Quebec, and employing carbon capture technology on the site.
The Nisk deposit was first discovered by Inco, now Vale (NYSE: VALE), in 1962.
Critical Elements Lithium purchased the site in 2014, but had not advanced the project.
Shares in the company ended the day up 6.5% at C$0.66, giving Power Nickel a market cap of C$107.2 million. The shares have traded in a 52-week range of C$0.18 to C$0.73.
