Power Metallic: Analysts see elephant in the room at Nisk
Power Metallic Mines Inc (TSX-V:PNPN, OTCQB:PNPNF) could have a large-scale deposit on its hands with the Nisk project in Quebec, at least according to analysts at Red Cloud Securites.
Analysts visited the site earlier this month and noted the complexity of the geology but commending the company’s exploration team.
Painting a “The geological lines of evidence presented are reminiscent of piecing together an elephant,” the analysts said.
“Make no mistake, their task is not easy; the mineralization is hosted in rocks that have been cooked, squished, stretched and dislocated. Despite this, we are confident that they are on the right track to hunt down the prize nickel-dominant pachyderm.”
The project now covers 332 square kilometers, with roughly 50 kilometers of prospective ultramafic horizon along the basin margins. Power Metallic has deployed four drilling rigs, with a fifth planned, as part of its 100,000-meter drill program.
Analysts noted Power Metallic’s in-house expertise in magmatic Ni-Cu-PGE deposits as supporting ongoing exploration.
The Nisk Zone is classified as a magmatic Ni-Cu-PGE cumulate deposit. Its January 2024 resource estimate includes 5.4 million tonnes indicated at 0.77% nickel, 0.41% copper, 0.76 g/t palladium and 0.05% cobalt, plus 1.8 million tonnes inferred at slightly higher grades.
The Lion Zone, discovered in 2023, is a copper-rich remobilized segment of the system. Drill intercepts average 1.67% copper, 0.67 g/t gold, 28.7 g/t silver and 2.84 g/t palladium over intervals up to 39.6 meters. Analysts estimate the zone’s in-situ value at US$3.5 billion to US$5 billion.
The Tiger Zone is interpreted as displaced, metamorphically remobilized mineralization, with drill holes confirming polymetallic content consistent with a nearby ultramafic source.
Power Metallic is well-financed with about C$40 million in cash. Red Cloud maintains a BUY rating with a C$2.50 per share target, citing the company’s resource potential, ongoing drilling, and exploration of other projects as catalysts for value creation.
The Nisk property, located approximately 283 kilometers northwest of Chibougamau and 55 km east of the Cree Nation of Nemaska, remains largely accessible by road and has been expanded with additional mineral claims securing further prospective ultramafic horizons.
