Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
4:43 and ounces of gold and stuff like that. So it's been pretty crazy to sort of, you know, run into that type of rock. One more slide, Ken. And this is the one that I'm gonna, I guess I'll do one more slide after this, but this is a very interesting one because it shows sort of how the zone goes, which is sort of it goes right to the surface. We basically, I think we hit some pretty serious intersections at 30 meters, and it's been steady all the way down. Ken will give you more context on this. He's obviously worked in the Archean Shield and the Abitibi most of his life, and knows it much better than I do, but the typical rule of thumb here is that if you've got X as a width you know then you're probably going to have 8 to 10 times X as a rule of thumb in terms of that shoot.
5:34 And again, the good news is that basically it's highly unlikely this is the only shoot. That's the sort of not how these things typically come. So Ken will give you more context than that, but maybe we can just go one more slide, Ken, then I'll turn it over to you. The big picture is, you know, I think we were here with our audience maybe 2 weeks ago, and I said to people that, you know, we were urging them to get in then, because when you go from bad to less bad, that's when stocks can quickly double. And we basically have seen that happen now for Power Nickel. And we haven't even gotten close to getting to good yet or great. And I think those steps are coming for us. But I think this will be, I fully expect this to again have another move like that very soon because these results are gonna keep on coming. And I was looking at a couple of comparable Aussie copper exploration deals, which is really the Discovery Zone.
6:39 The line zone is basically a copper story. It's 50% economics, copper, 25% economics, PGMs, platinum group metals, 25% gold and silver. So it's again, more copper than anything else. And those explorers over there, I would say on our project, you would definitely not make the trade. You would keep ours and somebody's dog needs to be fed. And they're trading for a couple hundred million. So like just, you know, still several multiples away from us and we'll see. And that's why that Lausanne curve is in there as just something to reflect upon as investors because for the Lion Discovery Zone, we're very much at the start of that.
7:30 So don't feel like you guys have missed out just because you missed this first double. You know, I think there's many doubles coming here, but you know, this is still very, very early days. And to help us understand it in more context, Ken's gonna get into a bit more of the detail of what we're seeing and how we're seeing it, and we'll also walk through next steps. So Ken, over to you. All right, so I'll just simply drag another screen In front of us, and just to relocate ourselves and to keep going on the great story that Terry has started to tell us, here's where we were at when we had to take a little break, spring break, I guess.
8:23 So that's the surface map. And just to put things in perspective here, What we had initially done was to be drilling from that fence of hole here, just a quick recap. And then the discovery hole is from this location here. And after that, the second hole was on the same kind of section, slightly deeper and after the good work that we've done, we've ended up drilling all of those drill traces that we can see on screen. Now we're looking at a section view looking east pretty much.
9:09 So what is it as a context in terms of geology that is hosting that very to me spectacular mineralized zone? Well, the first thing that we'll discuss about, I guess, is the overall geology. So, to make it very easy, what I'm going to show now is the, an ultramafic body, sorry for the bad shape, it's just very, very preliminary, but the contact of that ultramafic body that we see on screen is very detailed model where the lens or the mineralized zone is. So now let's have a look at a little bit of a context here in plan view, and I'll remove Topo in just a sec here, but what we'll see from that image is the fact that the mineralized lands definitely is right at the contact of those ultramafic rocks, a little bit of the same scenario as what we had at NISQ.
10:24 However, in terms of relationship with an ultramafic body at large, I mean, But in terms of the specifics, it's a bit different than what we had at NISK, in the sense that NISK mineralization was contained within that ultramafic. In our case, that mineralization is right at the contact. Now, when we look at the geology, what we're seeing here on screen are only the drill traces. So, if we have a look at the geology that we got from there, what we'll see is that it's pretty consistent from hole to hole. I'm just going to put that a little slightly bigger here.
11:15 So very consistent geology from hole to hole. So, it starts in a, let's call it a felsic intrusion, and then we hit several dikes along the way, and then all of a sudden, the zone itself. So now, pretty simple recipe. However, what we've observed with those numerous holes now, is that there is some variation in the local variation in the geometry that we see of that contact. So if we were to not bother too, too much with the ore zone, as I'm used to do, usually, and just focus strictly on the geology side of things, what I'm going to do now is to cut for you a plan view, a little slice, a horizontal slice, and what I'm going to do, I'll just reorient that a little bit where North's supposed to be. And if we were to go down on this, what we'll see is from 1 hole to the other, the geology is kind of kinky a bit.
12:25 And then one could say, well, it's probably an artifact or something like that, but no, I don't believe that is an artifact with the amount of information we have now it seems to be real and then we can recognize a few orientations in there in terms of geometry or more easily said some sort of a swing in here that would shift that contact from this location down to that other location perhaps. So based on those visual observations what we ended up thinking is happening here is probably the system is kind of squeezed in between structures and perhaps it's a dilational jog or perhaps it's a lens that was pre-existing and now is squeezed in between those structures and it's giving it some sort of a sigmoidal shape that mimics exactly the shape of that contact here. So if I was to put the men's zone back in here, then we would see that the zone itself, never mind those projections there, it's just lack of information, but in the core it follows really, really nicely
13:56 the contact with the ultramafic unit. So the sigmoidal shape both confirmed with the grade as well as the geology. Now that's a nice plan view showing us that sigmoidal shape in plan, what is happening vertically. Then we could wanna see a section through that and verify if something funny or something particular is happening. So we have the luxury here to have a 1 complete section with all 44 that went way to the south to intercept another target that was deeper down in here but if we go back to this kind of view here, at the moment we can't really see the detail that I would like to show, simply because the slice width is way too big, so I'll just put a much more thinner slice width here, and what I'd like us to see is that the same kind of kinking effect or geometry that we were seeing in plan view appears to be repeating itself as well from 1 section to the other. It's very subtle, but it seems to be there, especially
15:27 when we look at that section in particular, for instance. So why are those little variation in geometry important?
24:18 Everything's in meter. So it took me a little while to, and still to realize how big that thing is. And even though it looks fairly well drilled, you gotta remember that each of them pierce points are 50 meters apart and more sometimes. So 50 meters is 150 feet. You know, at Red Lake when I was there, within 150 feet we would contain the entire high-grade zone there. So to me it just makes it very exciting even more when we realize that the size of this is to me quite significant actually and it's just the start of it.
25:08 In terms of where it's going, we didn't find except a couple holes on each side, 1 isn't displayed, it's all, oh no it is displayed, all 30 in here that seem to be a little bit back, and the other whole 45 which are kind of suggesting that it's confined within that panel. The thing is, if it's sheared or transposed, it's quite possible that all 45 and 30, for instance, are drilled by coincidence in between a couple of pods, for instance. So we will verify those things by re-looking at the core, paying a lot, lot more attention on the structures, and describing those structures, and even re-sample in places that we didn't necessarily sample in the first place, if it's the case, to make sure that there's no anomalies or to confirm actually that there's some mineralization anomalies that is within those faults perhaps that we can't see with our naked eye.
26:31 So we'll do really good science once we have more data in terms of assays. We're not limited to only the metals, we're analyzing a suite of elements. So we'll do geochemistry once we have the data to do geochemistry. And probably what I'd like to do at this point, I'll just cut again a plan view. I'll try to make it horizontal as much as I can. And then I'll just show you guys the, in plan view, but like as if we were looking at plan views at a mine site, for instance.
27:26 So I'll just take a decent slice width For a plan view, let's say 5 meters width, which is, whoops, not 53, can 5, I said, okay, so 5 meters width, and then it would give us a plan view like this. When we look at the scale, each square are 20 meters right now, so 5 meters is the thickness of that zone in the core of it, and as you can see, I'll just tilt it slightly here so we can have a look at it down plunge, but roughly the thickness in the core of that zone is about 5 meters through thickness, 5 to 6 to 7 meters sometimes through thickness, and it gets attenuated as we go west and east, approaching those faults.
28:21 As I was mentioning, I have the sincere impression that it's being transposed along the 2 structures. So, when we're looking at this, I'll just bring in the assays that we have. Let me find them. So, this is for hole 44 that I'll use as an example here. So, we're looking at it in a plan view, so it looks gorgeous. In terms of grade, I'll just put what the grade is. We're looking at palladium here. Whatever is magenta colored is over 10 grams per ton, not too shabby.
29:08 And then what I'll do, because probably geologists are more used to it, just cut a vertical section through this, so that we can have a look. I'll just rearrange it properly. So we can have a look at the suite of assays that we have that makes up the composites that you guys can see in our press releases. So it is not a case that we have one little band, super, super rich, that creates the entire composite. The composites that we're showing, The larger 1, the tens of meters, is the envelope that we see here, actually.
29:54 There's another lower grade envelope that I haven't spoken about yet, and I'll conclude with this, actually. But it's the entire I-grade envelope, I guess, that we're reporting and then within this you'll have those couple meters, 345 meters of consecutive massive to semi-massive chalcopyrite carrying all of that gold, silver, PGEs at the same time, as well as copper, obviously. So It makes it a very, very nice story. And it is even nicer to me when I'm looking at what's coming up in terms of assays that we're waiting for, in the sense that the GeoVector guys that we have logging the core did a tremendous work at logging that core very, very quickly, by the way.
31:03 And they provided us with a quick log of the visual interpretation, their visual take on the core that we were, that we'll send to the lab. So now there's a straightforward one-on-one correlation between what the observations were versus the grade that we get from the lab. And I'm pretty convinced it's gonna stay like that after 4 holes confirming this. And what's coming up for us is documenting those drill holes here that were drilled later in the program to the east. And the reason why I'm so excited about those holes is they do show in this case a much larger and wider lower grade dope mineralized envelope. So whatever is yellow in that picture represents intersections where very little sulfides was seen, 1%, 2%, maybe 5% here and there.
32:16 Some stringers in orange, and again, not very many stringers, well, 5% stringers, centimeter wide stringers and things like that, but those things did not exist in the other holes that we did report so far. So even though it's low grade sulfide visually, the grade in there could be very, very interesting. And even more interesting as those assays are right close to surface. Those are the closest to surface assays that we have. So, you know, it seems that all the planets are lining up very, very nicely, both in terms of grade that seems to be consistent and continuous and really exciting, in my own opinion, but also in terms of geometry, we're starting to see through the data, geometry that seems to be consistent, predictable, and the geology context that comes out of that, I believe, allows us to be pretty confident that this lens is part of a system of lenses that are yet to be discovered in and around this.
33:40 Now final conclusion for me, I guess, hopefully, no it's not there anymore. So let me just load up. Oh, they were there. Let me just load up this guy here. So I know the image is not really good. I'll just try to clean it up as I speak through it. But this is a long view, I guess a general long view that shows NISQ Main. That's our main mineralization at Power Nickel, or was so far. And 5km to the northeast, we have the Lion Discovery Zone in here. We've reported really, really awesome grade in here, in terms of PGE, Gold, Silver, Copper, etc.
34:33 And I did mention, I believe, that there was also Nickel in that package. So, 5 kilometers to the southwest, there is a known Nickel ore body there, with a resource on it, in the old shebang. My own impression, it is not a coincidence that we have this guy over there with nickel kicking in the recipe when we have a nickel deposit right next door, next door being 5km away and where I'm leading to is I'm starting to get a sense perhaps that the 2 mineralized pods somehow are connected together.
35:21 So it could well be part of the same much much bigger system. So obviously it means to be demonstrated, but there's nothing wrong at thinking that way, I guess, and setting our exploration program accordingly to discover such a phenomenal, potentially dared deposit somewhere. So I think it gives us a summary. Okay, Ken, that was great. I'm always learning as I listen, and obviously been listening to you for a long time now, and hopefully for a long time forward, but it's exciting stuff for sure.
36:13 I see we've got some questions from some of the audience, So I think we'll probably slide into some Q and A and go there. Got a question from Oscar Norris, or one of our folks at Hennam Partners that did the research report on us. And he is asking, with the potential for fan drilling program, what would be the approximate total length of drilling across all holes? And with the drill rigs you have, do you have the ability to drill to that depth or will you require an additional rig? So I can answer on the size wise. I mean, basically, I think the plan is right now, as I recall, something like 20 holes, Ken, that we've got sort of mapped out. So, you know, I think the average step there would probably be around around 400 meters is my guess, but there'll be some shallower, there'll be some deeper. So that would be about 8,000 meters or so.
37:17 And I believe we've got the rigs that can do that I don't think that's a problem Ken is there any issue there on the depth so far so good as long as we're not drilling you know at 1 and a half kilometer down we're good to go yeah and if it ever happens I'll be happy to change the rig. We'd be very happy to have this thing run for 1.5km And everyone listening here would be even happier still. So that's good. Let's see who else has got some questions here. The question from the consultants.
38:03 The rate of the sigmoid zone would be west-southwest? It's more almost due north, actually. So the plunge of it would be, or the rake is to the southeast, not southwest. The picture on screen was a little bit off, it shows the opposed, but it's just an orientation thing. So it's definitely plunging to the south-southeast Well north-northeast in fact That way North-northeast sorry for the the confusion. I had it wrong. Okay.
38:53 He also asked, are rock mechanics good in the Lion Zone? Yeah, rock mechanic is good in the Lion Zone. We haven't struggled with brittle faulting and things like that as we did once in a while at NISQ so so far so good there's no real bad ground or nothing like that to report And what about the specific gravity? He says likely greater than 4? Probably. My guesstimate right now is 4.1. A rough number. It could be 4.3, could be 3.9, I do not know, but I guess estimate 4, I guess, is good enough.
39:40 Okay. With all the domains coming in from warrants and options, how many meters do you expect to be able to do? You know what, I mean, basically, I mean, we talked about 8,000 meters, you know, as an initial follow-up program on this. So let's start there. I mean, I think we'll end up drilling, you know, a lot more meters over the year, probably 20,000, 30,000 meters at the end of the day. But, you know, that's what we got sort of programmed. The question from Adrian here, fabulous news, if money was no object, how much progress could be made in the next 12 to 18 months?
40:32 Ken, you were at Red Lake when they hit those hot zones. How quickly can this come together? Oh crap, if we're not talking about the permitting, just to define this within a year and a half, we'll have definitely a very robust resource done, probably up to, if we can strip that at one point, because it's probably outcropping on surface, I'd really like at one point to see if it's possible to strip it out and observe that on surface, which would give us a measured resource Right next to surface. I think it depends on the the permitting Will be faster than the the permitting I think us So we're not permitting that from a drilling perspective but from a from a prop for a mining perspective Yeah, yeah, if it ever happens to become something real, I don't know. But in terms of defining the zone and the exploration, the next drilling phase will give us, you know, double information as we have now.
41:52 So, yeah, it seems to be, I don't know if that could answer the question, but it's gonna be, I would say, easy exploration. Okay. Question from Todd, If you did sulfur isotype chemistry between the NISQ zone and the line zone, could you determine if there were some chemical connections? Probably. That's what I meant with doing geochemistry with a whole suite of elements that we have, trace elements and stuff like that. We'll definitely try to put all of this together and and see if there are similarities geochemistry in the geochemistry of both lenses NISQ and Lion and we'll go from there.
42:48 Right now my guess honestly just because we see Nickel with the mix at Lion, there has to be somehow a connection between both. That's honestly my gut feeling right now. I was talking, I've been corresponding with a, I would call him a rock star Australian geoscientist who said, couple of big world-class discoveries. And he's just a really interesting and educational guy. And I won't mention his name just now, but hopefully soon. But I was asking him about this and he said, because we were initially talking about NISQ and he was quite intrigued with NISQ and then with this new copper zone, He said, this is much more than just a sweetener.
43:48 But he said, this type of stuff happens as expressions of a really big nickel sulfide project that often you'll get these rich, not often, but he says, sometimes you get these, like in the rails, you know, you get copper and gold and silver as part of the systems, you know, and they said, it's interesting, you know, how that all comes together. So It could be that we're onto something truly special here, that underneath all this is some, like where did all this fluid come from? It's coming from somewhere probably deeper, and both the fluid that's enriching the line zone and the nickel. So the great thing from a investor perspective is we've made some massive discoveries.
44:40 We've got obviously a big resource at Niskan is growing and then we found this tremendous copper, PGM gold silver zone that's super rich at surface. So in my mind, this is like already an economic or mineralized zone area and or by I guess, now that we've got the 43.1 we can say, so, so, you know, I fully believe this is going to become a mining question is, you know, is there going to be 2 or is there, you know, how many you're going to have here? And how big are they gonna be? And I say, as an investor, that's what you like. You got the asymmetric risk of it being worth boatload and yet you control your risk by knowing that they've already really found something that's truly very valuable.
45:28 And I truly believe we're not even close to what we've already discovered value right now. I mean, I think we've got a long ways to go, many, many, many times where we're at today to get to be what we're worth, what we've already discovered and the potential to discover more is phenomenal. So that's why as an investor, it's a tremendous time to be looking and that's that whole Lassonde curve thing is that you get down to these discovery curves. Once you find them making the discoveries, and it seems like it's got some legs to it, that's the time to speculate and get into these things because in our case, we've got the fallback is a great nickel resource that's done really well. And now we've got this icing on the cake, but as it turns out, it might be the cake, it might even be the bakery, you know, so it's a pretty interesting combo and we're very fortunate to have it.
46:24 Back to the questions. How thick is the overburden and can you do some trenching? Is it about 30 meters thick or so, Kent, something like that? 30 feet. 30 feet, wow. So, 5 to 6 meters in this area and if we were lucky to get permitting, I guess it would be doable to, well I hope to maybe trench that eventually. The stuff that we'd learn exposing this on surface would have, you know, no, Well, it's difficult to put a price tag on that. It's unvaluable to me. It would be super nice to be done, but we'll see.
47:11 It's a wet area. There is some logistical things that we, that we'll take care of, But if it's possible, yeah, I'd love that. A question about the PNPF ticker. Any ideas what was halted? Was halted due to the share price ask for 1629 yesterday. It was halted all day yesterday in Canada because of the news that we had coming out. And we issued that clarifying release because of requests by BCSC. And then we followed it up with obviously the news release that we're talking about today, the holes 47 and 51. So that's why it was halted and then it would have come unreleased. So next question.
48:02 Excellent presentation, congrats on discovery, the line Zone. Kenneth, what do you think the most similar mine comparables would be based on what you're seeing to date? Do I have the right to say that I have absolutely no idea? Yeah, I mean, that's what I've been telling people. No, more seriously, I haven't had a chance to never look at Norilsk and other deposits like that, like for real. I've read many articles about them, but one thing I know is sometimes at Norilsk, for instance, it happened, there is a portion of the Nickel system that is enriched quite considerably in PGEs and things like that.
48:50 But all deposits, as far as I could learn, all deposits then are becoming like their unique kind of entity. They do share lots of things in common but have their own unique footprint sometimes. So perhaps it is a case like this right now, similar to some extent to Norelsk, but very different to some other extent in terms, perhaps, on the structural control that is more probably prominent in the Abitibi. So We'll discover what it is earlier than later, I hope.
49:36 Adrian asks, are you expecting a third party to want to come in and take say a 10% stake in Power Nickel? What would be your reaction? Obviously, we're talking to industry and have been talking to industry. And obviously now we're talking to some new industry players because of the copper gold PGM aspects. And undoubtedly that will happen at some point. We're obviously options or warrants are being exercised right now. And so the cash is coming into the company, which is so we're in no desperate need for financing. You know, so we're, you know, mindful that we've got a lot of great holes to come out and get those out and hopefully crank the value as it should be.
50:23 And at some point down the road, we'd probably do something. I mean, I think one of the things we recognize, even because we're in Canada, is that the recent federal budget will probably impact the flow-through game somewhat because they write a lot on capital gains exemptions and stuff. Until June 25th, it's the old rules. So I'd expect that we'd probably, you know, get a lot of our news out between now and June 25th and probably, you know, look for a major revaluation on the stock and then look at doing some transaction between now and then.
51:10 That would set us up for a couple years of drilling. There's a question on our plan of arrangement. Okay, what was the question? After saying appreciating all the work we're doing, what is happening with our private? Okay, so basically what's happening there is we're just finishing up the audit April 29th, I think, or 30th, and then that'll set the stage for the final information we needed to announce the spin out and expect to have a shareholder meeting mid-June to approve that. And that would be for our BC and Chile projects. So that's the plan.
52:07 And did I miss any questions, Doug? There's 2 that are more or less the same, which you partially answered already. And that's, at what stage do you think the large miners start looking more seriously at Power Nickel and perhaps take a large stake or try to take us over? Yeah, I think, you know, generally speaking, these are the results that definitely put you on their radar. And so I'm sure we're flashing on a lot of people's radar, but they'll wanna see probably some more continuation. So I would think by the end of our reveal of the winter program on the assays that will have gotten a bunch of people to the table.
52:53 I'm speaking to some of the giants right now. So we've got some obviously some big players already in the stock that are, you know, that are nicknames. So, so I think, you know, now that we've broadened out in the copper, gold, PGM space, it brings another set of interesting investors to the table that obviously have a different outlook than the pure nickel guys. So yeah, a lot of good stuff. I mean, I think we're in a really great position to structure something that's really productive for our shareholders and for the investment, for the ultimate investor.
53:39 They'll come in because they see mammoth potential and then we'll be able to tap into their expertise as well. So a good spot to be for a small company like Power Nickel. So we're excited about what we see in the future. Another brick in the wall there is getting our feasibility study done. And for a number of players that helps them with their due diligence process and gives them something to build on as they analyze what we're doing. Yeah, 100% and perhaps that's a good thing to sort of almost wrap with is that, while obviously the excitement has been on the lion's zone and we've been pounding away on that. I mean, it was just a simple question of, I think there, I saw the question there, they're asking about you drilled in 1 to 4, what happened there? We're still waiting on the assays on there.
54:32 So we don't know, but not as visually appealing as some of the holes we drilled previously looking for the nickel sulfides. But very early days on the nickel exploration side of things and we have lots of plans there, but the reality is that's $200 rock or so, 250, whatever, something in that range. And this is potentially in situ value, a lot more valuable, maybe several times more. So just from an economic of your exploration dollar, when you got limited dollars, where do you spend the money? Well, you put it where it's gonna have the most impact in terms of value in the ground, because ultimately that should be what resonates with investors.
55:18 So that's why we switched more to the line zone just as we're shooting fish in the barrel up there and let's get at it. It doesn't mean that we aren't super confident about the nickel and I truly believe this will become a nickel mine. I've been working really closely with CV Mar on their first report and they've obviously done a bunch more work on that report than we had initially planned. We drilled a bunch of metallurgical holes, which were great as well, added more tonnage that way. I think it'll be some interesting business development things to moat on that in the short run. But today we want to focus everyone on this hot new baby, the Lion Zone and how prolific it's been and we'll look to continue it as we go forward. So I think we're just about out of time.
56:09 Any final questions I missed, Doug? No, I think that covered it all. Mr. Kyle, if that's okay with you, then I think we'll sign off with that and we'll timing line wise, we'll probably get back in and start drilling weather permitting fire, please stay away from Quebec this summer. And then I think that the probably late into May, early June, we'll get back at it again. And then the interim we'll have a bunch more assays for you. So things are, I see somebody making a joke about, is the smell of short burn fingers?
56:55 Well, if it isn't a short burn yet, it may well soon be because, you know, The worst thing, I don't know, when you got an ore body that's really working, man, do you not wanna be short that because you just can't stop it and eventually these things are just money. So anyway, it's interesting and thanks God that we've got it. And it's in Quebec where we've got the 2 for 1 financing. So it's really off the road at the surface, it doesn't get much better. So got a great relationship with the Cree, and the First Nations. So it's all systems are go for power nickel right now. So we'll look forward to talking to you again in the next few weeks as we keep you