Power Nickel Series: Developing Canadas Next Nickel Mine (Ep. 3)

0:07 Hi, everyone. Welcome to today's live episode for Power Nickel. This is our monthly series. It's the third episode and I'm pleased to introduce Power Nickel's CEO, President and Director Terry Lynch. Hey, Terry. You're going to walk us through a company presentation, I think, today, and afterwards, we can take your questions live. Yeah, by the hair of our chinny chin chin. Exactly.

0:29 We just literally got everything coordinated here, guys. But anyway, good to be back with the 6 and we'll give you guys a bit of a Christmas update. I've got my Christmas bear here this is all part of the holiday season. I'm into the the fireside chat sweater because I'm basically winding down a little bit. It's been a very busy year for us. And I just came back from London and pretty bagged, but it was a really transformative year for the company in terms of what we've accomplished. It's started to move in the stock market yet hasn't come yet through, but we're really on to some great things. I'm gonna walk you through a bit of an update. I'm gonna give you a bit more background on the nickel market. Well, I think nickel is gonna be one of the hot sectors next year.

1:19 And I think we're gonna be the, you know, one of the hottest guys in that sector. So that's all gonna be all good for us. So without further ado, we'll start. And then you can obviously ask questions. I think Ken will give you some directions on how to do that. And then we'll chat afterwards and get an update and answer any questions you might have. All right, let's move moving right along. Standard disclosure statements that you see in all these deals. We basically tell you the truth as we know it, but it's always good to do your own due diligence and that's a practical safe thing to do. So let's talk about the nickel market. So interestingly enough, nickel today, I just checked is around 13 bucks. That's a pretty great number when you think of it. For example, as we did our resource updates in 43-101s, generally speaking, it's been at $8.

2:15 Some have done it up to 960, but there's significant upside, I think, in the nickel price right now for us, which is interesting.

2:26 The prices obviously got crazy earlier in the year with the London metals exchange and the sort of disruption that happened there. And then, you know, towards, it got softened a bit in the summer with the recession concerns, etc. You can see like, can barely even see this light blue thing in here. That's sort of the softness. But as you can see going forward, it looks pretty robust. And it's somewhat a tale of 2 markets. Basically, the surplus is in Class 2 Nickel, not Class 1 nickel, which is what power nickel would ultimately end up, we think, producing at its high-grade nickel sulfide mine in NISP. And even within class 1, it's really geographically super short in North America, as this shows down here, and versus say China.

3:24 So, I mean, class 1 nickel from China is just never gonna find its way to North American automobile manufacturers. So that's why class 1 nickel is just in a really tight position and it's in a boat to get a lot tighter This is what it looks like demand wise as we as we go forward batteries will be a key driver of long-term growth for Nickel. There's 2 major themes in Nickel that drive Nickel's demand curve, and that would be urbanization, which is people buying more pots and pans, fridges and stoves, and driving the pursuit of stainless steel. So stainless steel is the big sort of gorilla in the house. It basically accounts for 70% of nickel consumption.

4:12 Batteries are, you know, I think you see various numbers within that sort of the 10 to 15% range right now, but it's growing rapidly on a compound annual growth rate and they expect that by 2030, it'll be like 35% of the market. And you can see here, these are sort of the growth as it's shaping up various different sort of assumptions, you know, with the nickel, you know, depending upon how much nickel is being used in the batteries. And it's shaping up to be a fairly significant price discrepancy. The US demand growth is happening today. That's because you basically, this IRA is the Inflation Reduction Act, and it's basically incentivized investments in the United States and somewhat in Canada as well to build battery plants. And these are plants that have already been announced, you know, something neighborhood of over $35 billion worth of projects, and they will all need a class 1 nickel and there's just not enough of it to go around. So that's, so if you've got class 1 nickel, you're gonna be very popular date at the ball.

5:21 So, this sort of reinforces it with how it works is that basically it starts at 40% and then as you go through the years, actually gets up into 90% of supply has to be come from North America. They look at it a couple of different ways, but nickel qualifies in both ways. And what it means is that you can't actually make a car at 90% without having North American nickel, it just will not be possible to get your full subsidy. And imagine if you're an automotive maker, if you're a Toyota and you're competing against General Motors, and General Motors has got its supply lines in order and has able to provide a full, you know, 7 or $8,000 subsidy and Toyota doesn't for whatever reason, and I'm not picking on Toyota, could be the other way around.

6:09 The point of the matter is you're an automotive manufacturer, you definitely want to be competing, you know, equally with your competition. So They'll be doing all they can to secure their supply lines and make sure that they're going to have lots of class 1 Nickel to work with as they go forward to build the electric vehicles that they forecast to build at that point in time. That gives you a bit of a, you know, I think a broader theme. I've given some talks on this, you know, just in terms of, I think that's one of the points people miss on the nickel story is that there's, you know, like all things, there's several nickel stories. There's the Class 1 nickel story versus class 2 versus recycled nickel. There is the North American story versus European story versus the Chinese story.

6:58 And so when you get down into the sub markets of where we're at. We're North American class 1 nickel. And you know we've got a high demand gap that we're missing and we'll miss. It's going to get worse and worse. And so you know substitution will take care of some of that. You know you'll have some recycling come in. But there's you know by anybody's reporting there's going to be significant need for new Nickel mines to come in and fill the gap. And that's going to be reflective in the pricing. So I think probably over the next year, Nickel pricing is going to look strong, and that will drive interest and investment in Nickel. That's going to be good for us and good for our shareholders. That's a broad market drop on that. I think overall, if I was investing in sectors, obviously, I made a big investment in Power Nickel just in the last 5 weeks.

7:56 I believe Nickel is going to be a very compelling spot to be in 2023. Let's dive into the details on Power Nickel. Some of this is just refreshing, but we did put out some news a couple of weeks ago, so it's important to touch on that. The major points that will drive us going forward is that We've been drilling for about 4 months now and we'll be drilling for another 4 months, a total of about 15,000 meters. We're starting to get those results out. We'll talk about some of those shortly and more will be coming in early January and sort of every 3 or 4 weeks after that until the end of June. We'll show you that we're trading at a fairly deep discount to our comparables. And ultimately, as the market becomes aware of how profound our discovery is, and as they see it become commercial, that discount will shrink.

8:48 And I think that'll be a great day for all of us. We think the commodity bull market is here. We're starting to see it, certainly in the base metals and Nickel has obviously been responding. Nickel, we just went through why the supply-demand curve and class 1 nickel in particular North America is particularly fantastic. So we're in good shape there. I think the other thing with our project that we're really happy and blessed with is that it's polymetallic. So it's not just nickel. It's got copper, it's got cobalt, it's got lots of palladium. And that's important for it'll drive economics. It also enables you to finance more creatively at some point in time if you want to go that route. So there's a lot of benefits to having a polymetallic deposit, which is what we've got.

9:35 And then finally, we'll talk about the bonus spinouts that we've got in our Copper Golds that is not insignificant. So where are we at in Canada? We're basically in Quebec, in Northern Quebec. And that's a, I think a ridiculously great spot to be. It's probably, I would say Western Australia and Quebec are the best jurisdictions in the world right now. And I would argue Quebec's the best. Number 1 reason I think is the Quebec government has done a superior job of providing both infrastructure support and education to the communities where mining is important. So they've done a great job of working with our native partners, the various Aboriginal groups in Quebec. So they understand the benefits of mining and how it can impact their societies and be helpful to them and yet still be respectful to their traditional ways. And they've also done a good job of basically providing the roads and power and things that really are essential for cost-effective mining. So Quebec has been fantastic that way. And then finally, they have the best financial incentive package in the world right now, where you can basically, for every dollar I get from an investor, I can turn it into at least 2 in real cash and deploy it for exploration. So there's no other regime like that on earth. I can, I'll walk you through an example of that later on, but it's pretty profound. Think of it as a spot where, you know, everywhere else in the world, they have to spend a dollar in Quebec,

11:05 we have to spend 50 cents. So that's a huge advantage for us. Yeah, so these were the results we got in March of last year. And then Based on that, we expanded like a 30,000-meter program that we started with this first 5,000 meters we committed to. This area in here that I'm circling on, that's roughly, we internally modeled 5,000,000 tons, non-43-101, but that's our modeling. We stand by it. This is the, if we go back here, this hole in here, this hole here are these 2 holes. And this was the 26 metres of 2%. And this is about 5 metres at 1.7%. And they were like 150 meters each out of the resource area. So those would have probably added 1 million tons right there.

11:55 I mean, these are significant, very promising results. And you can see them here, sort of this is this hole and this 2209 down here. So these are all other holes that are gonna be reported on. There's a few more. I think there's, you know, there's, you know, we'll be reporting 2 or 3 holes every 3 weeks or so, probably start. The next ones are, will be out in early January, sort of probably, you know, end of the first week in January or the beginning of the second week, we'll get that out. So that will be significant. Again, this slide was the one we had talked about, but when you sort of see us going up to 10, all of a sudden you start to realize there's a significant commercial valuation that can happen as a result of that. And it happens generally because you found more Nickel and the Nickel you found is going to get paid more because it's being perceived as being commercial.

12:54 And then the other upside is when we sort of talked about at the front end was basically the Nickel price curve being supportive. So there's upside to that. Just to give you a number on that, we basically, if you model it $8 Nickel and you go to 960 Nickel, you increase your revenue by about 20%, but your profitability goes up about 35%. So even though the revenues go up, your profitability goes up even more. So every time you go up, it's a pretty significant sum of money that could add to the overall value proposition. One of the things that we're quite excited about is that we're just working this very small section of 1 kilometer back here, just to go back a slide or 2.

13:50 This here is a kilometer. So that's 1 kilometer that we're working. Now the overall width of this thing

14:00 is about 3.5 kilometers. And these are about 2 and 2 down here. There's a lot of promising ground here. What's interesting in nickel sulfide discoveries around the world, they're never a single pod, they're always multiple pod. So We would expect this to become a multiple pod situation. We basically would think that would end up having, this is an ultramafic deposit. Other ones like it in Canada were Lynn Lake at 22Mt and Voices Bay at plus 50Mt. We would think our geological team believes that we will likely be between there. Between a 20Mt to 50Mt deposit at the end of the day. I think what that means for us is it's going to be massively commercial.

14:53 What we're doing to sort of evidence that and prove it is to continue to do the drilling. So we'll basically, we finished now for Christmas break. People are like me getting teddy bears for their grandkids and

15:07 you know taking a bit of time to recharge but but they'll be back at it again in mid-January and we'll be drilling until end of April early May. We'll also you know be updating our 43-101 which we'll hope to get out in probably in June, to incorporate as much drilling as we could possibly do. And then we're doing some pretty interesting stuff on the finding of the other pods. So in addition to doing seismic and gravity, which will be the normal historical ways you would have found these extra pods, we're also going to be doing something called sound imaging, which is pretty interesting. A Talametals has done it in Minnesota with great success. And it was, we think that they were exposed to the technology by their relationship with Tesla and Elon Musk. And they basically, there's a company in Australia called Fleet Aerospace that does the sound imaging and it's basically like sonar mapping of a deposit and they figured out a way to sort of somehow turn that into intelligence on potential deposits.

16:18 And it's particularly effective if you've already got an existing known deposit that can use that as a model. So we're gonna be doing that in conjunction with the gravity

16:30 and seismic. And we think that'll expedite our discovery of the other pods, which we have no doubt are there. But obviously, the sooner we can find them, the quicker we can drill them up, the more our resource goes up and the more our valuations will go up. You know, We spend 90% of our time, rightly so, speaking about our Nickel projects and Nickel opportunities, but we do have some other assets in the company and they're not invaluable. They're very valuable and not unvaluable. This is our Copper and Gold projects in BC and Chile. In BC, we have a very significant Copper Gold asset. This is in the heart of the Golden Triangle. This is the triangle down here. We're right down here and we're overlooking the town of Stuart. So we're the mountain overlooking the town. We're effectively the top of the mountain really. And it's never been drilled.

17:25 And there's some pretty interesting development happening around us. StrikePoint Gold and Skylar Resources are advancing their exploration and getting some good results.

17:35 You know, we've got Ascot Resources, which is now building a mine as a result of their discoveries, you know, just next door. So that's all good. That would have happened before we had acquired the project. So that was good acquisition from our side. We did some, it's never been drilled, so this has never been drilled yet, but we sampled on surface and found 3 different samples on surface of over 0.5 ounce gold. So that's very exciting, or 0.5 ounce gold. And down here, right on the border, Silverado has got StrikePoint's best results. So pretty interesting. We think there's a definite something happening here and something that can be exploited, whether we do it directly ourselves or in cooperation with some of our neighbors, will probably unfold in the early in the next year.

18:25 What might that be worth? Basically, these things are worth about 15 to 20 million, is my guess. So that's almost worth what we're trading at today. So that's a strict bonus that you get a sort of a downside protection or future upside anyway you want to look at it. And then we have Chile. We used to be called Chilean Metals, so obviously that was our focus. And we have some amazing tracks of land there. You'll notice that it looks like it's a sandy, barren place. Well, in fact, it is a sandy, barren place. But what's interesting is there's a lot of potential value over there. Over here is the former, the Candelaria mine that Freeport McMoran developed and is now owned by Lundin. It's a multi-billion dollar mine.

19:12 And it's basically, they're going to run out of production there in about 4 or 5 years. And they're desperate for somebody to discover something close by. And we've got all pretty much, we got the most of the land next door. And it's been super underexplored. We've done some work,

19:28 but the challenge has been When you explore in the sand, there's a thing called caliche, which is a mineralized limestone that is at the base of the sand. And it tends to restrict the signals for gravity and for seismic to be effective sort of, you know, identifiers of possible intrusions that may hide a Copper Gold deposit, porphyry, whatever. And so, as a result, you know, it's under-explored. What's interesting about the sound mapping technology that we're gonna be using at NISC is we'll probably use it here first is to get a feel for, cause sound mapping they've used in Western Australia, which has similar sand dunes and similar conditions, and they have had no problem with the caliche.

20:19 So that could be transformative for us being able to see better underneath our huge land packages. I mean we've got 3 packages that are sides of City of Toronto like several 6008 thousand hectares, let's just like mammoth land packages. Yet you know not very well explored, but this could be a way to really get a good regional view and things and to vector in on some opportunities. And again, what we do with that, it remains to be seen. Generally the working plan for, if all else, if we don't consider

20:54 another M&A transaction that's possible, we'll probably spin this off in Q2. Last year, we talked about doing it and then the market was so bad we just didn't see that making any economic sense. We think this year this is going to be the year to do it so we can translate value. We want people to be able to invest in power nickel as a nickel play and not, you know, a lot of people that want nickel, you know, don't want copper or gold. So there's sort of 2 different animals. So what we do want to separate those, but we'll be sort of, you know, we'll definitely find a way to get that value translated back to our shareholders, either through a dividend or a sale and those proceeds going in and reducing dilution in the future from this.

21:42 The other asset that we've got that's significant and that's becoming more popular now is our Royalty Asset on the project we sold to Tech.

21:51 That project looks better and better now with the copper prices looking bullish and Molly as well. So We're certainly open to selling that project now. That people now have stopped trying to take advantage of us. They realize that, hey, we're not gonna sell it for nothing. This thing is worth several millions of dollars and there's cashed up royalty funds that would maybe make better sense for, in our tech itself. So we're not sure, but we're open to that if we get the right price point, because that would again, reduce future dilution. The team hasn't changed, So still same group. We've always tried to put our money in the ground at Power Nickel because that's what good juniors do.

22:40 How we do it in Quebec is we've got 2 great geological consulting teams, 3DGEO led by Ken Williamson, and They've been the leaders in mapping our deposit and 3D modelling it. They've done a tremendous job in helping us find the resource. We're super stoked about the job they've done. And then we've been using GeoVector

23:04 to manage the drill program and they've got some great leadership over there. Joe Campbell is one of the industry veterans and certainly a super successful junior mining guy. And his team with Adam and Eric and the whole group have been phenomenal and they've done an amazing job for us in executing and that's allowed us to focus on fundraising and telling the stories and getting out there while they're being left to execute on the science side. And we generally super happy with what they've been able to accomplish. Since we last spoke, we, I think, concluded a financing. And we basically raised a little boat, 4.1, 4.2 million dollars. It was when we announced the deal, I think the stock was 10 cents.

23:53 And we ended up doing 70% of the deal at 20 cents, a 20 cent unit and 0.5 at a 10 cent unit. We did that because we, I talked to you about that 2 for 1 deal in Quebec, where you basically can get

24:07 a Quebec based financial institution to step into the transaction. And they have taxpayers in Quebec that can take advantage of various significant tax advantages through the flow through and through the mineral tax credits that the governments have put together so that they can justify their investment. They basically, my understanding is that if their top tax rate in Quebec is 55% after they do this transaction, it drops to 43% and they have no risk. So they're happy with reducing their tax. And then for us, the benefit's obvious. We get $2 for every one. For the investor, it's fantastic because he's got $2 working for them to help the company grow and obviously help their investment grow. It's a really financial

24:58 wonder of the mining world and we're lucky to be able to take advantage of that. We've done that and we expect to take advantage of the future. At some point, we'll need to raise more capital down the road here as we move forward. We're fully funded through the end of this program. But We think that as the year comes to an end and the new year starts, there's a lot of funds looking at putting Power Nickel into their fund.

25:29 We think the stock is going to have a big run, I guess. And so that by doing that, we'll be able to finance at higher prices and then use the 2 for 1 to get even more. So it'll reduce the share dilution in the future. And that'll be good. And in this round, basically, you know, it went to 90 95 percent, all existing shareholders with some very rare exceptions. That was basically because It was a very cheap round in our view. We didn't like to do that at that price point, but we had no choice. Now we have enough money to make it commercial. We think next round we're going to be showing the world a much different animal in power nickel. It's going to be at a commercial stage where people see that, yeah, this is going to become a mine.

26:21 And how big is it going to be? That's going to be the next question. And so we, the Lynch family, did the biggest check writing this round, but all the big shareholders participated. And, you know, because they didn't want to be diluted because they felt, hey, they've taken it this far. Let's not, you know, not be there now because this will be when the big value gap, I think, shrinks is that when the projects go from exploration to commercial, that's when the real money is made in mining. I'm giving you guys a chequered flag as I'm saying that's in my mind, based upon my own writing significant checks. I believe fully that's about to happen for Power Nickel. So final wrap up before we get into the questions.

27:10 Basically, reiterate that we've made a major discovery at NISK. We've shown in our most recent results that we're really getting some big holes. 26m of 2% Nickel is a big hole and we think there's more of that coming and maybe better. We've shown we're trading at a fairly massive discount to our peers. We understand why historically that's been the case, but now that, you know, the market should start to realize, hey, these guys have got a major discovery and it's going to become even more major, that shrink, you know, that shrinkage should start to go away and that'll be profoundly impactful for our share price. We're going to keep drilling. We'll be drilling from now until the end of April, early May, whenever breakup happens. That's about the only sort of 6 weeks we can't drill at NISQ.

27:57 And we'll be reporting as a result of that every 3 or 4 weeks. So that means it's going to be an action-packed, sort of news-friendly time period for our shareholders and our company. That'll enable us to get a brand new resource out that will bring in the new metallurgy, bring in all the new drill results, and hopefully deliver a resource that shows the marketplace that we're commercial. We think we're just blessed that we got a polymetallic deposit, which gives us a lot of flexibility in addition to driving the economics. We think there'll be some interesting news on the spin-offs and or M&A transactions on our other core assets that people have generally forgotten about.

28:44 And then finally, we're working in Quebec. So we've got this amazing 2 for 1 financing model working for us. And I mean, people just have not figured that out yet, but that is gonna be transformative for people that are working in Quebec that have viable deposits. So that's about it, Ken. Why don't we, I'm gonna go back to some of these slides that I think might be useful and we can pick up some questions and go from there. Absolutely, Terry. Thanks for the great presentation. And just as a reminder to everyone in the audience, you can ask questions using the Q&A chat on the right hand side of your screen anytime. But first question from Miguel, what's your forecast for the nickel price in the next 3 or 5 years, Terry? You know what? I mean, It's interesting. I mean, I've read a lot of stuff in this benchmark and Goldman Sachs, et cetera.

29:36 Certainly, you know, they're talking next year, it could be sort of, could approach, you know, $15 again. Right now it's around $13. The general feeling is it should be in the $10 to $15 range. As you get beyond $15, Nickel starts to get substituted out because it gets to be too expensive and then it drops back. So there's that. So I would think that's a fairly good, comfortable range. And as I said, most of the modelling that we've done has been at $8 nickel. Anything in that range is money for us. That's going to be good. And the longer it stays there, that'll mean, when we ultimately sell this, because that's what we won't be building this mine, we'll be de-risking it. We'll find all the ore bodies we can, de-risk all the environmental stuff, we'll de-risk all the metallurgy and do all the preliminary economics so it can be assessed and sold. But we think that there's going to be a significant premium for North American nickel. And so we'll get paid for this.

30:41 All right. I think you've gone over it a little bit before in the presentation, but what's the difference between the various nickel forms that are there? Yeah, so you know basically, you know, it's sort of, there's 3 types of nickel, class 1, class 2, and then recycled nickel. So, and I guess even within recycled nickel, there's ferro nickel and there's other things, but generally speaking, those are the 3 that people talk about. So class 1 nickel is what's needed to make battery metals. Theoretically, it's possible to purify Class 2 and recycle Nickel, but those facilities don't really exist yet and they're expensive and they're energy dense. So in other words, to make it Class 2 Nickel into Class 1 Nickel is not a very green-friendly thing to do. So when you're trying to sell consumers on switching to EVs because this is the right thing to do, then that doesn't make sense.

31:43 So Those are the 3 types of Nickels. And just to summarize where we're at with each is Class 1 Nickel right now is in a shortage in North America and generally in the rest of the world, but not in China. Class 2 Nickel is generally in a, you know, there's a bit of a supply, certainly in China, where they've got, I would say, a supply of Class II Nickel, but Class II Nickel has been growing as well with the stainless market. Recycled Nickel is growing, and that's gonna be one of the things that you'll see. That there'll be a recycled Nickel market, but it's still early days, but I'm sure that'll come. And if you look at the long term, sort of 5 years out there, the recycled Nickel will be a part of the package. But right now, Class 1 Nickel looks super strong, probably through the lifetime of our project and the sale of our project.

32:42 All right, great. Adrian wants to know if you could provide an update. You've previously made comments on the short positions on Power Nickel. Yeah, you know what, I mean, we generally feel there's a significant short position out there. You know, We've got some plans for those guys that we think they'll not be happy with, but generally the best plan is to show them there's a lot more resource and that will take care of these guys. Because as people realize, this thing is worth a few hundred million and maybe a couple billion, you know, these shorts are going to be covering because they're going to be in harm's way. And one of the reasons why we sort of, you know, did this financing that, you know, we didn't really want to do, but we had to because we needed to sort of take it to the next stage is we're gonna take this to a commercial stage through this, you know, that round we just did. So we think that by the time this round is done, if the market stayed as bad as it is right now, you know, at 20 cents or something like that, we could actually take this and sell it to industry at that point in time and get like a lot of money because this will be a mine and they'll go that and they'll pay up because there'll be 10 of these guys trying to buy it.

33:57 So trouble is coming for these guys and they can either cover now or they can cover later. Fair enough. What impact do high nickel prices have on returns? So yeah, it's quite profound. So we'll know in our project, each project will vary. So, you know, I would say just, but broadly speaking, as a rule of thumb, you know, if, if, if Nickel prices rise by 10%, your profitability probably goes up by 15% or 15 to 17 and a half. That would be the range. So that's a good rule of thumb.

34:47 So If we went from $8 nickel to $12 nickel, so profits would, NPV would go up by probably 85%, something in that order magnitude. So even though it went up by 50, sort of 80, something like that. So it really does translate into better returns for us. Right. Are you expecting any results from previous drilling? And do you have core and data from previous exploration? Yeah, we have core from the previous exploration, like the historical stuff that was done before we acquired the project. We had the core from that. That was why we were able to incorporate that information into our revised and updated 43-101. And obviously, any of the new stuff that we've done since November of last year through the current time period, we'll certainly have all that available and it's all logged and stored professionally on site and wouldn't be cheap there.

35:49 Great. Joe is wondering if you have any evidence to support that your nickel is class 1 and if there's any reason that you're specifically talking about class 1 versus class 2 now. You know, I mean, basically old metallurgical reports, you know, this will be part of the things that will come out of the new metallurgical stuff. It's high-grade Nickel sulphide, So that would be the logical progression is to make it into class 1 Nickel. But that'll be officially put to bed when we do the PEA, which will come out at the end of the year. And typically these things, If you look at Talon Metals, they're probably the more recent PEA that I can think of that was done.

36:40 They did 3 types of scenarios that make it into a concentrate, make it into Nickel Sulphate, and make it into Nickel Powders. The various forms of investment, but again, it's a Class 1 nickel in all cases, but you get various types of returns based upon how much farther you take the Nickel along the process line. There's also some pretty killer new technology coming out of Australia that BHP has financed that looks to be that you can add a circuit to your flotation process and go almost like it's called a Nickel leaching process. And it can go directly to Nickel Sulphate. So you wouldn't have to go to concentrate. It could be even more cost effective. So yeah, we definitely think we've got a Class 1 Nickel deposit.

37:30 And the proof will be in the, ultimately in the PEAs, but it's based upon the high-grade nickel sulfate concentrate that we've got. No, fair enough. David's question, you might've just covered it, or at least the first half with that answer, but if there's anything else, maybe you can make comments, but about any metallurgical work that you've done and if you have any by-product credits. Yeah, I mean, again, there was metallurgical work done historically many years ago by SVS, and we're doing a whole new suite of metallurgical right now and it'll be ready in about 4 months. And the credits, yeah, we would think there'd definitely be credits.

38:21 Certainly, You may run a couple of different cons. There may be a Nickel Concentrate, there may be a Copper Concentrate, there may be a Palladium Credit and the Cobalt as well. As we get through the PEA, that'll be spelled out more particularly. How important were the first assays that Power Nickel released? I think they're Very important because it basically showcases the potential for the deposit to grow substantially and that you can find much higher-grade ore here and much bigger sections of it. Those are all super positive things. And I think we felt really good. I mean, the first go round, we went 7 for 8 in drilling.

39:13 And this round, I would say we've been hitting about 80%. And that's fantastic. If you're drilling, I mean, this is, you know, it's, you know, 150m step out is, you know, that's a great step up. You know, that's, you know, that's, that's exploration, you know, so yeah, It was in an area that we thought there was. Obviously, the team did a good job of theorizing where that deposit was and it's been a fairly interesting river of nickel to follow. It's doubled back on us once, which is sort of cool as rivers do. Sometimes they turn and then they come back down and that did, but we were able to track it. And so it's been great. The guys have done a really good job on the exploration.

40:00 Absolutely. Adrian wants to know, he's saying that auto manufacturers are starting to take an interest in battery metal suppliers. Have any talks taken place with respect to offtake agreements at all? Folks yet but with these yeah there and or the nickel manufacturers themselves have been everyone's interested in this deposit potentially because it could be you know next to you know talent metals this could be the next nickel mine in North America that could be conceivably up and running. And so everyone wants to get that one in the tail. So this will get, you know, as people get more aware of what we've got, they're gonna get more and more excited about getting involved with Power Nickel.

40:56 Right. Would the mine be open pit or underground? You know, this first pod would be open pit and underground. Other pods, you know, until we discover them, it's sort of hard to forecast. But this first one would be open pit because the pods goes right to the surface. And we're down at a depth of about 400 meters now. So it's still open at depth. So, you know, who knows what's down there? But but this is where it's at right now. Fair enough. Could you talk about the upcoming news cycle for PowerNickel, including when investors should be able to expect the next PEA? Yeah, so basically we would expect that, as I said, early January, we'll get the next round of results out. And then we're getting, we put the results in every week, starting since mid September, it takes sort of 10 to 12 weeks for them to come out.

41:49 And then we'd like to get 2 or 3 holes out at a time. So I would think after we start the results out in January, then it'd be sort of towards the end of January, the next one, and then later in February, mid-March. So every 3 or 4 weeks, generally speaking, the results should come. And then that will do until probably, I guess, end of June. And then at the same time, we're finishing off the new metallurgy and we'll update our 43-101 and get that revised 43-101 out. And that'll be sort of end of June as well, I guess. And then we're working towards a PEA in Q4.

42:36 So that would be sort of the timeline. And then the other thing that will be of significance is that we'll be basically doing a regional plan, regional exploration effort to find the next pods so that we can show that this is not just a single pod mine that it's, there's never been 1 like it in the world yet. But yeah, we think it's gonna be an amazing time. I think, I get asked a lot, what do we think about the overall market, market conditions and blah, blah, blah. You know, what happens if there's a recession? And it's like, you know what? Even in the, you know, market crash of 2029 or, you know, or 1929, it there was stocks that went up, you know, because inevitably, and I don't see anything like that, it's so dark, if there's a recession, there'll be sectors that still outperform. And I think the battery metal sector is going to be one of them.

43:36 And I think North American Nickel, if you actually, you know, we evidence that continuous success with a drill bit that we're showing right now and deliver the upgrades that we're talking about, there's no way this is not worth a lot more money than we're currently valued at. And so I think from a comfort perspective, people should take confidence in that. And I know it's been a scary year and A lot of people have been traumatized by losses in the market and just general fear. But, you know, I think there's going to be a resource boom that's going to start in the base metals and ultimately the precious metals will probably jump on board at some point. And there's going to be serious profits made, fortunes made.

44:22 And I'm saying to investors that they should strongly look at over-allocating to the mining sector in general and the battery metal sector in specific. We obviously believe in power nickel. We've written serious checks to evidence that belief ourselves. We have no problem saying to people, this will be a great exploration play for you. And we think it will soon be a very lucrative one. So I think that's the way to leave the message. Wishing everyone a very happy holiday season. Merry Christmas. Hope you get to spend some time with your family. It's been a, you know, a challenging last few years and we haven't been able to get together with family as much as we'd like because of the COVID rules and all that crap.

45:15 But generally this looks like to be a year that we can do that. I hope everyone takes the time out to spend some time, recharge, have a blessed Christmas and blessed holiday season. And we'll look forward to getting back working for you early in the new year and hopefully 2023 can be a really fantastic year for us all.