May 10, 2023
Power Nickel Inc. (TSXV:PNPN, Not Rated, Timothy Lee) reported positive results from a wildcat exploration drill hole (PN23-031A) at its 80%-owned Nisk project in the James Bay region of Quebec. The hole was designed to test a strong magnetic anomaly in a previously undrilled area ~5km northeast of the main Nisk Ni-Cu-Co-PGM deposit (see map), where fall 2022 and winter 2023 drilling recently returned encouraging results (read more). The hole encountered multiple chalcopyrite stringers and veinlets over the first 60m (see section). Assay highlights include: 1.47% Cu, 13.1 g/t Ag, 0.28 g/t Au, 5.71 g/t Pd, and 20.76 g/t Pt over 7.75m, including 3.9% Cu, 25 g/t Ag, 0.52 g/t Au, 19.97 g/t Pd, and 90.6 g/t Pt over 1.75m (true width estimated at 70% of drilled thickness). Notably, the mineralization was encountered within the amphibolite and tonalite rocks that overlie the ultramafic unit that is the host of the main Nisk deposit. Power Nickel plans to complete additional geophysics (Ambient Noise Tomography) over this area before conducting follow-up drilling. The company also plans to conduct re-analysis of the results from hole PN-23-031A to assay for other PGEs such as Os, Ir, Rh and Ru. In our view, this is an interesting new discovery, with notably high-grade Pt-Pd assay results. It is worthy of follow-up work to determine if this mineralization is continuous laterally. As well, the discovery of mineralization in the overlying rock units opens the door to additional exploration on the property beyond the main ultramafic unit. Power Nickel recently raised ~C$4.8M (read more) and is well positioned to explore this sector when the next round of drilling commences in Q3/23. Read more
Company Specific Disclosure Details
Power Nickel Inc. – TSXV:PNPN
- The analyst has visited the head/principal office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
- In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
- In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration.
- An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly.
- Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities.
- A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer.
- Red Cloud Securities Inc. is a market maker in the equity of the issuer.
- There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.
