Impact: Positive
Power Nickel reported visual observations from drilling at the Lion Cu-PGE zone on its 80%-owned Nisk project in Quebec, with 10 of the 12 holes drilled so far in the 20-hole (~8,000m) summer program encountering sulphide mineralization. These holes have successfully extended mineralization 1) 150m below previous drilling, 2) along the western boundary near surface, and 3) following the mineralization down-plunge to the west. The plunge of mineralization to the west is shallower than previously anticipated. The Lion zone now has been drill-tested 350m laterally and 450m vertically. The current program is focused on systematically testing extensions of the Lion zone on a 50 to 75m grid, and initial assay results are anticipated by late September. Ground-based geophysics is also underway at the Lion zone. Drilling is expected to resume in October, following a month-long break. The company has also planned a 30,000m winter drill program to further test the extensions of the Lion zone. In our opinion, these are positive results, as these holes appear to extend the Lion zone further at depth and down-plunge. While these are just visual observations, and assays remain pending, the presence of sulphides in these holes is clear in the drill core. The shallower-than-anticipated plunge to the west is positive, as it reduces drilling costs and, ultimately, may be advantageous for mining.