Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:07 Hello everyone and welcome to PowerNickel's live event hosted by Sixt. Our speaker today is their CEO, Mr. Terry Lynch. Now he is at the mining event of the North in Quebec right now, so we only have 15 minutes, but Terry wanted to provide a quick update on the latest press release. We'll try to get questions if we have time, but really we only have 15 minutes, so we'll get right into it. So Terry, kick it off whenever you're ready. Okay, Kyle, thanks so much. Just thought I would give you a quick hit, everyone, on what's going on at Power Nickel. Lots of
0:39 news this last little while. The big thing is the transition, really, from being a nickel story to being more of a polymetallic story. So what does that mean really? It means that when you have a polymetallic mine,
0:55 you basically have a core metal, in this case nickel, but it's expected that the revenue from this project that the,
1:11 I can't handle that. Sorry, we're getting reverb here. So we expect that basically the revenue from the gold, silver, copper, PGMs would outweigh in a revenue format the nickel. So that's what makes it polymetallic. The world's most valuable mines are polymetallic, so that's a good thing to do. So next slide. We're gonna walk you through 5 quick reasons why now's a great time to be considering powered nickel. Next slide. So when we started this, obviously we had the nickel discovery, And that's been a big part of our story. So that is it, down on the bottom left-hand corner. That's NISC.
1:56 So it was associated with an ultramafic rock. And so when we mapped the project, we had noticed that 5 and a half kilometers to the northeast, what at that point was called the Wildcat Target, we had noticed there was a ultramarine expression at surface, and we thought, hey, we should drill that. It had a nice EM anomaly. There was several there that we had and we thought this one correlates, we should drill it. We drilled it and we had that discovery hole, which is hole number 23. And it was, you know, basically our party 31. And it was almost like 1 ounce of platinum group metals, you know, 1 half percent copper. So very good discovery hole. And it sort of set a chain of motions in fact about, hey, maybe there's something different about this. Maybe it's not just nickel, you know? And so we stepped forward. Next slide, please.
2:45 So we obviously, it was a winter target when we drilled that last April. And we of course not knowing what we were gonna hit, we had no plans to drill beyond that. And then of course we hit this and then we thought, wow, we really wanna get back here and drill some more. But while we, you know, we had to wait until January to do that, and then we started drilling in January, we started to reel off a significant series of hits. We released, I think if you recall, in mid February, a picture, this picture, without any assays, just saying to everyone, look, we've hit some amazing rocks here we think are going to make us, it's going to be material news. We said it's a material news event. But of course, you know, until the assays go, people sort of didn't really necessarily, you know, know how material it was.
3:32 Next slide, please. This is from Henan Partners, and this deck is on our site now, so you can get it there, is basically the average width of our last drill holes was over 10 meters. And this is sort of a copper equivalent system. So it's got as high as, if you look at it, it's, you know, I think it's like 24 percent, you know, in this one hole. It's like an insane hole. But, you know, we've got, you know, you can see there's half a dozen really spectacular holes. And these are really unheard of numbers. And it's really almost mind blowing how rich this is.
4:20 So the results we put out yesterday and reissued this morning, we're quite again, very, very supportive of what we found here, which is an impressive new discovery. One of the most impressive copper discoveries in recent times. Next slide, please. So we call it now the line zone, king of the beast, keeping with the cat theme. And basically it starts really at surface and it goes down about at this point, 275 meters. The width is about 225 meters. The real core of it's about a hundred meters. So that's where we're getting in that core super, you know, you've got, you know, probably half a dozen holes of 10%, 10 meter holes of copper equivalent 10%. So that's just enormously rich rock.
5:15 The next question is, where do we go from here? Well, you see on that blue targets, we now knew that we wanted to drill year round. So we're basically, you know, now set up and we'll start drilling in about a week, maybe even at the end of this week, these blue targets. So typically in the Archean belt, in the Epitibe, if the width is X, in this case, let's say 100 meters, the depth will be 8 to 10 times that. So we'd expect that this will probably go, you know, 800 meters to a thousand meters. So that would be, you know, probably you'd prove up, I don't know, 7 and a half, 8 million tons of ore, if that was to be the case. We're probably at 2 and a quarter now or something in that range. So already off to an amazing start of what looks to be a pretty stellar project.
6:05 The interesting thing with this is that these chutes generally don't come as onesies. The geological event that made this happen, the fracture and the fact the fluids were present to populate this zone probably happened over space and time. So there's probably gonna be several of these. Next slide. So back to this one we saw at the start. When we made that discovery hole, I reached out to, my son actually gave me a lead. He said, dad, I watched this video of this really prominent geologist from Australia. He said, I would say he's probably the top mind in the polymetallic exploration space, or he's certainly in that conversation.
6:54 And his name is Dr. Steven Gershford. He said, he said, he's talking about NISC, but he doesn't know it, because of course, you know, he doesn't know us. So he said, you should try and get ahold of him. So I did reach out, you know, through LinkedIn and was able to make contact. He got back to me, thankfully. And, you know, I'd send him some nickel assays and this polymetallic coal. And he said, what's your next step? And I said, well, you know, we got to drill, obviously, you know, this new discovery, but I said, we can't really get back in there until January. So he said, well, look, stay in touch and, you know, and let me know how it goes. And if it's looking interesting, then, you know, let's, let's reconnect. So, so we did, obviously, we, you know, we hit a number of the holes as we showed you. And then, you know, when we were hitting them, of course we knew they were good. I reached out to Steve and I said, you know, it's coming in like gangbusters. And he said, well, send me the assays we did. He says, okay, let's jump on a discovery call. So we had our VP of exploration, Ken Williamson, and we went through the whole thing. And, you know, it was interesting.
7:50 We basically, you know, I said, look, I don't really have an analogy for you. It's not like Voisey Bay because of this. And it's not like this gold mine because of that. He said, no, no. He said, I know what it's like. And I said, okay, what's that? He said, it's like Norelsk. Norelsk is, for those that don't know, is the world's most valuable mine. It's the only trillion dollar mine in the world. It's the big Russian mine. I initially thought it was like a nickel palladium mine, but Steve asked me, he said, do you know how many ounces of gold Norelsk has produced? I said, I have no idea. He said, 20 million ounces. He says, that's 12 paying minerals. And he said, look, I'm not saying you're the next Norelsk. He said, but if you were, this would be how it would start. You would have a project like this. So, I mean, that's exciting, right? I mean, so basically Steve has now joined the team as an advisor. He's actually in country right now. He's with our team working on that today and he's going up to the site on Friday for a week. So this is a guy we didn't know from Adam, but He's really passionate about discovering the next giant polymetallic mine. And I think it's a very good chance we've got one here. So that you know, that's what gets us sort of revved. And that's really what's exciting about the the press releases is more confirmations to this.
8:59 And, you know, I put this Lassonde curve on at this point because people say, hey, your stock's tripled, did we miss it? And I said, yeah, you've missed the 40 cent move, but you haven't missed what we think is gonna be the $4 move or possibly the $40 move. I mean, this thing could be giant. And we're right at the start of this curve. I think we're a better deal now than we ever were because, you know, we're so, you know, now, you know, if you look at, go look at Bravo money, you know, great discovery in Brazil and they're trading at 400 million. We're like a hundred, You know, so, you know, I'm not throwing rocks at them. I'm saying the grape is very well worth it, but I'm saying there's enormous upside here, I believe, and nobody's, you know, it's starting to wake up, but it's still early days. Next slide. Of course, we still have our nickel.
9:47 I'm gonna, you know, you know, the nickel, we'll start exploring again on this, this summer, and we'll look to add more nickel tonnage. Obviously, this is, you know, you know, enormously valuable and profitable rock, but relatively speaking, it's worth about a fifth or a sixth as much as what we're finding the lines on. So obviously we're putting more attention up there, but we'll definitely be joining this this summer. Next slide, please. So the only other update I'm gonna give you right now, and then we'll maybe take some questions,
10:19 is making lots of progress on the CVMR work as well. If you recall, CVMR is doing a feasibility study on NISQ on the nickel sulfide project, not on the copper zone at this point.
10:33 They make, among other things, nickel powders. We've actually made nickel powder with NISQ-OR, and I'm actually on a plane with CVMR going to Korea on Friday for a week's worth of meetings, third time with the Korean Battery Complex. And they're really interested in our nickel powder and North American nickel. It's North American nickel is a completely different animal than Asian nickel or African nickel. People gotta remember that, you know, for nickel at the start of this year was like a 4 letter word. You know, I remind people that nickel is sort of like in January, 2020, uranium was a 4 letter word. And then by December, it was everyone's one of uranium. So nickel is sort of going to be like that. I believe it would be a big sort of hit for nickel. And you know, the fact that we're now polymetallic, you know, gives us a lot of legs.
11:22 And remember, you know, the nickel powders
11:25 business is the business to be in. It's getting 60 to $80,000 a ton versus LME concentrate getting 20,000. So that's the business to be in, and that's why we're so excited to have CVMR on board, and that they produce the powders already from our ore to demonstrate what can be done is super, super impressive. So we're gonna hop on the plane on Friday and go to Korea and see what we can't get accomplished over there. Next slide, please.
11:51 So, you know what I think I'll do is, this is just a point on the North American nickel, which I already just made. So why don't we stop there? Because unfortunately, I'm at this mining show. I just wanted to give you a quick hitter update on things that are happening for Power Nickel. But maybe we can take a couple of questions before I have to get back to the conference. Yeah, Thank you, Terry, for the quick update. I know, and for any individuals that came in late, Terry is at the mining event of the North right now. So just a quick call. We have 2 minutes, so I'm gonna respect your time. Since we have no questions, I guess I'll ask, are people seeking out PowerNico at the event, or is there a lot of interest in your company? Yeah, we're a bumper to bumper here. We already have no meeting slots available. We've been one of the more popular
12:42 groups at the show. And obviously, when you have these types of results, everyone wants to know, you know, learn more about it and understand it. And, cause it obviously, you know, it surprised a lot of people.
12:57 So, we've been busy, you know, educating the folks and talking to some key people and and Yeah, we're quite busy right now Let's do some rapid-fire questions. I got 2 in right now now that the site has been proved out to such an extent What do you think major? Is going do you think I did majors gonna get involved?
13:22 Yeah, you know what? I mean, they're talking to us now and, you know, we're obviously chatting with them, but I think we'd like to push it forward ourselves here for the next, certainly the next balance of this year. We think we can do a lot of great exploration and really create a lot of value. So it's too early for us. And luckily, you know,
13:44 the top 5 or 6 shareholders own more than 50%. So nobody's gonna get off this project until we're ready to get off it in a good way. And unless there's a very, very big number out there and we'll get to that number we think, as we work through our exploration program. Last question, Rock's wondering if there's any news on the spin out. Yeah, so on the spin out, we're going to have an annual meeting. We thought we'd get it in the end of June, but looks like it's going to be early July now. So we'll have the details on the spin out that will be approved at the annual meeting and that spinout will take place in Q3. So definitively taking place and we'll have details out in that in the next, I would think certainly before the end of June. Perfect. Perry, I'm gonna respect your time. It's been 15 minutes, so appreciate it. Thank you very much. If you have any closing remarks, feel free, but thank you. Yeah, no, so that, I just wanted to give everyone a quick update. It's been a while. We usually are a little bit more, you're doing more podcasts and whatnot, but it's just been such a busy schedule the last while. And we'll get something hooked up a bit more comprehensively sometime in late June or early July and have a bit more of an advanced session with everyone. But in the interim, have a great rest of your June and we'll look forward to continuing to deliver some great news for our shareholders. Ciao for now. And safe travels Friday.
15:06 Thank you.
