TORONTO, Dec. 4, 2023
/CNW/ - Power Nickel Inc. (the "Company" or "Power
Nickel") (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) is
pleased to announce it has closed its previously announced
flow-through financing of $2.75
million CAD at $0.90 per
share.
The financing was completed with investors secured for Power
Nickel by Wealth Creation Preservation & Donation Inc.
("Wealth" or "WCPD"). To ensure this process was done in the least
dilutive way possible, Power Nickel arranged to have WCPD Group
organize a consortium of Quebec-based investors who made an initial
investment of $2.75 million
representing 3,055,556 flow-through shares at $0.90 per flow-through share. As part of the
process, CVMR Inc acquired these shares from the front-end
purchasers for $0.45 per share.
All shares issued bear a hold period of four months and one day
from the closing date. The private placement is subject to
the Company's completion of its filing requirements with the TSX
Venture Exchange (TSXV) and TSXV approval.
CVMR is a shareholder of Power Nickel and is currently
conducting several studies on the Nisk Nickel Sulfide PGM project
in Quebec with the objective of
delivering a feasibility study on the project in Q2 of 2024. This
was previously announced on August
15th, 2023.
Last week Power Nickel announced their inaugural NI 43-101
mineral resources estimate (see Table 1 below) that demonstrated it
had more than 5.4 million tonnes of Indicated mineral resources
grading 1.05% NiEq and 1.8 million tonnes of Inferred mineral
resources grading 1.35% NiEq.
The Mineral Resource Estimate presented herein in Table 1 is
either constrained within a pit shell developed from a pit
optimization analysis or presented as underground mineral resources
using an appropriate cut-off grade and reasonable potential mining
shapes which include must-take material.
Table 1 - 2023 Nisk Project Mineral Resource
Estimate at a cut-off grade of 0.20% NiEq for the open pit
potential and 0.55% NiEq for the underground portion.
|
Potential
Mining
Method
|
|
In-Situ
Grade
|
Calculated
|
Class
|
Tonnage
|
Ni
|
Co
|
Cu
|
Pd
|
NiEq
|
|
t
|
%
|
%
|
%
|
g/t
|
%
|
Indicated
|
Open Pit
|
519,000
|
0.63
|
0.04
|
0.30
|
0.56
|
0.84
|
Underground
|
4,910,000
|
0.78
|
0.05
|
0.42
|
0.78
|
1.07
|
Inferred
|
Underground
|
1,787,000
|
0.98
|
0.06
|
0.45
|
1.11
|
1.35
|
|
|
|
|
|
|
|
|
|
Potential
Mining
Method
|
|
In-Situ Material
Content
|
Calculated
|
Class
|
Tonnage
|
Ni
|
Co
|
Cu
|
Pd
|
NiEq
|
|
t
|
t
|
t
|
t
|
t
|
t
|
Indicated
|
Open Pit
|
519,000
|
3,300
|
200
|
1,600
|
9,400
|
4,400
|
Underground
|
4,910,000
|
38,300
|
2,400
|
20,500
|
123,100
|
52,300
|
Inferred
|
Underground
|
1,787,000
|
17,500
|
1,100
|
8,100
|
64,000
|
24,100
|
Please Refer to the Notes to Table 1 below at the end of
this news release
"This report constitutes a base case study which assumes that
Power Nickel would make a concentrate from the material extracted.
In this base case study, metallurgical work suggests that our
concentrate would show recovery rates of 70% Ni, 45% Cu, 75% Co and
40% Pd; neither Iron nor Platinum were considered being part of the
"payables". While rigorous and in accordance with all CIM
Guidelines and NI 43-101 requirements, such base case likely
doesn't show the very positive impacts that the CVMR process will
bring to this project down the road," commented Kenneth Williamson, VP Exploration.
Ongoing work with CVMR suggests sharply higher recovery rates
using the CVMR process which, rather than making a typical
concentrate, is optimized at producing a finished product. The CVMR
process also would create Iron and Platinum by-products, further
increasing the potential yield.
Power Nickel would expect to release prior to year-end benchmark
studies from CVMR that provide insight into these enhanced
recoveries. Based on data gathered through their multiple plants
around the world and initial work done on Nisk Main, the CVMR
process is expected to show recoveries 25-30% better than the
recovery estimates used in the 2023 MRE following a more common
"concentrate and smelter" approach.
The objective of the CVMR process is to develop finished
products like powders, nano powders, wire, anodes, and other
precursors. These finished products show typical command prices
that are 2-3 times the LME pricing that Power Nickel would expect
to get from production of a concentrate.
"Since August, Power Nickel has drilled 4,700 metres over seven
holes and the 2023 MRE only includes the first hole of this
program, PN-23-036. We are planning to add a second rig in January
to test the Platinum-rich Wildcat Target area, while continuing to
expand on Nisk Main. We expect to drill about 2,000 metres a month
and plan to drill through the end of April 2024.
More specifically, the second rig will be targeting step-out
drilling of our impressive PN-23-031A hole that had over one ounce
of PGMs over 7.75 metres. The Wildcat Target is located at a full
5.5 kilometres away from Nisk Main, where the 2023 MRE noted above
has been reported (see Figure 1 below)."
The Fleet Ambient Noise Tomography program (see release dated
January 31, 2023) has identified
several targets that have similar signatures to Nisk Main that
occur within this 5.5-kilometre corridor, potentially connecting
Nisk Main with the Wildcat Target area discussed above.
"We have continued to hit significant Ni-PGMs mineralization at
Nisk and we look forward to accelerating its exploration in the
coming months," Mr. Lynch commented.
Qualified Person
Kenneth Williamson, Géo, M.Sc.,
VP Exploration at Power Nickel, is the qualified person who has
reviewed and approved the technical disclosure contained in this
news release.
About Power Nickel Inc.
Power Nickel is a Canadian junior exploration company focusing
on high-potential copper, gold and battery metal prospects in
Canada and Chile.
On February 1, 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)
The NISK property comprises a large land position (20 kilometres
of strike length) with numerous high-grade intercepts. Power
Nickel, formerly Chilean Metals is focused on confirming and
expanding its current high-grade nickel-copper PGE mineralization
historical resource by preparing a new Mineral Resource Estimate in
accordance with NI 43-101, identifying additional high-grade
mineralization, and developing a process to potentially produce
nickel sulphates responsibly for batteries to be used in the
electric vehicles industry.
Power Nickel (then called Chilean Metals) announced on
June 8th, 2021 that an
agreement has been made to complete the 100% acquisition of its
Golden Ivan project in the heart of
the Golden Triangle. The Golden Triangle has reported mineral
resources (past production and current resources) in total of 67
million ounces of gold, 569 million ounces of silver and 27 billion
pounds of copper. This property hosts two known mineral showings
(gold ore and magee), and a portion of the past-producing Silverado
mine, which was reportedly exploited between 1921 and 1939. These
mineral showings are described to be Polymetallic veins that
contain quantities of silver, lead, zinc, plus/minus gold, and
plus/minus copper.
Power Nickel is 100-per-cent owner of five properties comprising
over 50,000 acres strategically located in the prolific
iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty
interest on any future production from the Copaquire
copper-molybdenum deposit, recently sold to a subsidiary of Teck
resources Inc. Under the terms of the sale agreement, Teck has the
right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property
borders Teck's producing Quebrada Blanca copper mine in
Chile's first region.
Notes to Table 1:
- The independent qualified persons for the 2023 MRE, as defined
by National Instrument 43-101 guidelines, are Pierre-Luc Richard, P.Geo. of PLR Resources;
Jeffrey Cassoff, P.Eng. of BBA is
the independent qualified person for the Pit shell analysis and
cut-off grade calculations; Gordon
Marrs, P.Eng. of XPS is the independent qualified person for
Metallurgy and Smelter Costs. The effective date of the 2023 MRE is
November 26, 2023.
- These mineral resources are not mineral reserves as they do not
have demonstrated economic viability. The quantity and grade of
reported Inferred Mineral Resources in this MRE are uncertain in
nature and there has been insufficient exploration to define these
Inferred Mineral Resources as Indicated or Measured; however, it is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.
- Mineral resources are presented as undiluted and in-situ for an
open-pit and underground scenario and are considered to have
reasonable prospects for economic extraction. Reasonable potential
mining shapes were modeled, and must-takes were included. The
constraining pit shell was developed using overall pit slopes of 45
degrees in bedrock and 25 degrees in overburden. Mineral resources
show sufficient continuity and isolated blocks were discarded.
- The MRE was prepared using Leapfrog Edge version 2023.2.0 and
is based on 117 surface drillholes and 3,835 samples, of which 96
drillholes were intercepting in the Nisk Main Zone. The cut-off
date for the drillhole database was November
26, 2023 with hole PN-23-036 being the last hole being
included.
- The MRE encompasses one mineralized zone defined by a
constraining solid with a minimum true thickness of 2.0 m. A value of zero grade was applied where
core has not been assayed.
- High-grade capping was done on the composited assay data.
Capping grades are as follow: 2% for Nickel, 1.5% for Copper, 0.15%
for Cobalt, 1.2 g/t for Platinum, and 3 g/t for Palladium.
- Density values were calculated for the Main Zone from the
density of the host rock, adjusted by the amount of Nickel as
determined by metal assays. A formula was calculated and validated
using a database of measured densities. Country rock density vary
from 2.70 g/cm3 to 2.85 g/cm3. The Main Zone density vary from 2.63
g/cm3 to 3.96 g/cm3.
- Grade model mineral resource estimation was calculated from
drillhole data using an Ordinary Kriging interpolation method in
sub-block model using blocks measuring 5
m x 5 m x 5 m in size.
- Nickel equivalency grade was calculated using metal prices (see
below), metallurgical recoveries, smelter payables and charges.
Metallurgical recoveries are 70% for Nickel, 44% for Copper, 79%
for Cobalt, and 67% for Palladium. Payables are 73% for Nickel, 69%
for Copper, 27% for Cobalt, and 78% for Palladium. NiEq = Ni grade
+ (0.2359 x Cu grade) + (0.9388 x Co grade) + (0.1810 x Pd
grade)
- The estimate is reported using a NiEq cut-off grade of 0.20%
for open-pit mineral resources and 0.55% for underground mineral
resources. The cut-off grade was calculated using the following
parameters (amongst others): Nickel price: USD10.00/lb; Copper price: USD4.00/lb; Cobalt price: USD22.50/lb; Palladium price: USD1,215.00/oz; CAD:USD exchange rate = 1.30. The
cut-off grade will be re-evaluated in light of future prevailing
market conditions and costs. The pit shell optimization used the
same parameters.
- The pit shell includes 3.6M
tonnes of overburden and waste rock resulting in a strip ratio of
7:1.
- The MRE presented herein is categorized as Inferred and
Indicated Mineral Resources. The Inferred Mineral Resource category
is constrained to areas where drill spacing is less than 150 metres
and the Indicated Mineral Resource category is constrained to areas
where drill spacing is less than 80 metres. In both cases,
reasonable geological and grade continuity were also a criteria
during the classification process.
- Calculations used metric units (metre, tonne). Metal contents
are presented in percent, tonnes, or ounces. Metric tonnages were
rounded and any discrepancies in total amounts are due to rounding
errors.
- CIM definitions and guidelines for Mineral Resource Estimates
have been followed.
- The QP is not aware of any known environmental, permitting,
legal, title-related, taxation, sociopolitical or marketing issues,
or any other relevant issues that could materially affect this
MRE.
- The QP is not aware of any known environmental, permitting,
legal, title-related, taxation, sociopolitical or marketing issues,
or any other relevant issues that could materially affect this
MRE.
Neither the TSX Venture Exchange nor it's Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding
Forward-Looking Statements
This message contains certain statements that may be deemed
"forward-looking statements" concerning the Company within the
meaning of applicable securities laws. Forward-looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects,"
"potential," "indicates," "opportunity," "possible" and similar
expressions, or that events or conditions "will," "would," "may,"
"could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, are subject to risks and uncertainties, and
actual results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties
include, but are not limited to, among others, the timing for
various drilling plans; the timing for various activities being
conducted by CVMR and potential recovery rates by CVMR
processes; the ability to raise sufficient capital to fund its
obligations under its property agreements going forward and conduct
drilling and exploration; to maintain its mineral tenures and
concessions in good standing; to explore and develop its projects;
changes in economic conditions or financial markets; the inherent
hazards associates with mineral exploration and mining operations;
future prices of nickel and other metals; changes in general
economic conditions; accuracy of mineral resource and reserve
estimates; the potential for new discoveries; the ability of the
Company to obtain the necessary permits and consents required to
explore, drill and develop the projects and if accepted, to obtain
such licenses and approvals in a timely fashion relative to the
Company's plans and business objectives for the applicable project;
the general ability of the Company to monetize its mineral
resources; and changes in environmental and other laws or
regulations that could have an impact on the Company's operations,
compliance with environmental laws and regulations, dependence on
key management personnel and general competition in the mining
industry.
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SOURCE Power Nickel Inc.