Will Power Nickel Be the Next Nickel Sulphate Mine in Canada?

0:07 Hello, everyone. Welcome to Power Nickel's live investment summit today, hosted by 6. Today I'm pleased to introduce our speaker, Terry Lynch, CEO, President and director of Power Nickel. Terry's gonna walk us through a company presentation and after we'll be accepting live questions. Remember that you can submit your questions using the Q&A panel found on the right hand side of your screen at any time during today's presentation. And as always, this event is being recorded. It'll be available to watch on six.com in the coming days. So without further ado, Terry, I'm going to pass things over to you and you can take it away.

0:37 Thanks, Cam. Really appreciate the opportunity to get on the podcast and update our shareholders and interested parties in Power Nichols progress over the last year. And we'll walk you through a presentation, our current presentation that's live that we're giving investors and hopefully answer some questions in people's minds about our potential, we think, to become Canada's next nickel sulfate mine, or build it, or allow it to be built on a project that we're working on called NISQ. So without further ado, we'll just dive right into the presentation, And then after, as Cam said, we'll take some questions from the audience and go from there.

1:24 So standard disclaimer that you always have to do your own due diligence on these things. We're not telling you anything that we don't think is true and we're pretty certain about these things, but it's always incumbent on people to sort of do their own due diligence. And that's what this forward statement suggests. So why invest now? There's a number of good reasons and we'll expand on these as we go forward. I'm a big believer in investing when the theme is moving a lot of boats and I think right now the electrification of the world, you know, and the movement in particular to electric vehicles is really, I think, setting a stage for a commodity bull market, particularly in the battery metals.

2:11 And that's a theme that I'm following and with some of my other just personal investing. And I believe it's gonna be very bullish for power nickel. You know, so we'll talk more about that in a second. The main project that the reason I would say the fundamental thesis, why you'd want to invest in power nickel is because of our NISQ project in James Bay, Quebec. And it's a high-grade nickel, copper, cobalt, PGE deposit. It's a nickel sulfate play. And that's important because all nickels aren't made the same. So when we think about the electrification as a movement to, you know, it's basically gonna, you know, literally double the demand for Nickel over the next number of years, according to the Nickel forecast. It's basically the Nickel sulfate that they really want because that's what they need to make batteries. It doesn't work for laterites or recycled nickels. So that's an important point.

3:09 It's always good when you're making an investment to be buying something that you think is relatively good value. So We think we're exceptional value right now relative to our peers. And we think there's a reason why that happened this year. And we think there's a reason why it's going to unhappen. In other words, we're going to start to trend back up. And I think When people see what we're building here, there's gonna be a re-rating of Power Nickel and that'll be very, we think, beneficial for our shareholders. We started off the year as Chilean Metals and now we're rebranding as Power Nickel because of the acquisition of NISQ and what it potentially could offer for us. With that rebranding, one of the things we're doing is we're spinning out our copper gold portfolio, which is basically our projects in BC and the Golden Triangle there, and in Chile.

4:05 We think those are, if you look at the math from last year, basically our valuation was about the same last year before we had acquired NISQ. So our view is with the spin out, you're either getting NISK for free or getting our Copper Gold projects for free. You're getting something for free right now and that's always a good thing. So we think that'll be the best way for us to maintain and enhance shareholder value is to do that. So we expect that that'll take place and be approved at our annual meeting in January and happen sometime in Q1. And then finally, we'll get into much more detail on our drilling, which is currently underway at NISC. And we'll talk about the value creation moves such as the assay results coming back in and speaking to those.

4:55 And also that will lead to us having a revised and new 43-101 on NISQ. And we'd expect that to probably early Q2 at this point.

5:08 This is a chart I like to use to sort of illustrate where we're at in the commodity cycle. And if you look on the left hand side of that chart, it's basically an overlay of the TSX-V as a proxy for the Metals and Mining Index over the S&P. So on the left hand side you can see that ratio gets as high as 3 and sort of certainly trends over 2.5. Right now it's about 0.25. So that would basically be an order of magnitude shift, like a 10 bagger from here to move back to the peak of a commodity bull market. So I think that's what's gonna happen over the next 12 to 24 months. And that's a, that's a wave that's going to raise all boats. And we think it's going to raise power nickels boat as well. And we think we're doing some specific things that'll make it even more beneficial. So it's going to be an exciting time to be a metals investor.

6:02 I think over the next 12 to 24 months. One of the other things that we think will be beneficial is I started a project called Save Canadian Mining with some great partners and Eric Sprott and Sean Roozen and Keith Neumeier and a host of other high profile mining executives who saw and continue to see the problem of predatory short selling. The chart on the lower left basically talks about the issue in a statistical way, showing that when we dropped the tick test in October 2012, since that time, historically before that time, the commodities sector, the metals mining index, traded at or above the commodity index, which makes sense. It's a commodity business. We should trade in line with the commodity index. Right now we're trading at about a third of the commodity index.

6:54 So stocks don't have to triple to get back to normal. So it shows you how subtle changes in securities laws can lead to devastation and fair trading. And so in the end, we've been lobbying the government as a safety mining to make the changes. We've had some success with lobbying their task force that has recommended the government to make some very specific changes that we hope to get in legislation, probably in Q1 and probably in Q2 of next year. So our fingers are crossed that they'll be beneficial in terms of stopping to a large degree predatory short selling. So again, it's not against short selling. That's when you borrow stock or you have stock and you sell it short. That's one thing that's disclosed. That's transparent. We've got no problem with that. But when you don't disclose that you're selling and people are wondering why stocks going down when there's no common sense reason, that's predatory short selling. And that happens all the time in Canadian securities and particularly in the mining sector. So we hope that if we can change that, that would basically buoy all stocks. And we think that would be healthy for not only power nickel, but across the board in the metals mining sector and indeed the entire Canadian small cap universe.

8:15 So let's talk about NISQ. NISQ was a game changer acquisition. It was a bit of an interesting story about how we were able to acquire it. I'm a shareholder of a company called Critical Elements that's a very good Lithium play. I think it's going to be Canada's next lithium mine. And my friend that's the CEO there, I eventually discovered that they had this nickel asset on the books and I looked at it and I thought, wow, this is like almost ready to become a mine. And they weren't getting any value for it because obviously they're strictly a lithium plate. It's much the same reason why we're bouncing out our copper and gold thing is the market doesn't like multi-purpose mining companies, especially in the small side.

9:01 Maybe if you're a PHP it works, but it certainly doesn't work for power nickel or critical elements. So they made a decision to sell it and we convinced them to sell it to us for basically taking effectively almost 20% of the company at the time. And so That was interesting because we were able to get them to take a stake in our company and to help us execute on bringing this thing to a mine. It was a really great deal for us but it's also a great deal for them because now they've got a big stake in something that's been, you know, sole purpose of getting this into becoming a nickel mine, and highly likely that they're gonna be able to monetize that at some point in the future to great benefit, and That's why they did it. So reflecting on the actual project itself, what was interesting is it came with a historical resource.

9:54 Now, the way the 43-101 laws work, if you don't drill upon a property in a certain period of time, it becomes a historical resource. So this project was discovered by Monarch Gold, and Monarch sort of discovered this nickel deposit just when They also made a good gold discovery and they ended up pursuing the gold project. They actually swapped the nickel deposit to Critical for gold claims that surrounded their gold deposit. They eventually became a several hundred million dollar mine. They made a really great play. So we know that Monarch is and was a great mining company. So it's no reason to believe that they didn't do a good job in discovering the Nickel deposit. And one of the things we'll gain with this round of drilling is we'll actually be able to remove this historical thing. And it'll be when we get the new 43-101, it'll just be a current technical report with an updated resource call at that time. So that'll happen, we think, probably in early Q2 of 2022.

11:03 Right now we've got about 3Mt of, if you do the math, it's about 2% Nickel EQ. It's a multi-metallic deposit. It's basically Nickel, Copper, Cobalt and Palladium. Basically, revenue-wise, it would be 50% nickel, 20% copper, 20% cobalt, and about 10% palladium. So it's a very robust set of economics. Probably be almost $400 a ton of rock. So that's very valuable material for sure. So it's super rare to find a deposit like this that isn't already being chased down to become a mine by the company that owns it. And we just happened to have been able to find a situation where we were able to get it from our friends at Critical Elements and now it's become our cornerstone property.

12:03 In terms of our due diligence, when we looked at it, one of the things we did or that we like to do when we're evaluating resource deposits is to look at comparable deposits. So in our mind, the Palladium 1 and Talon metal deposits are sort of comparable. And we said, okay, well, let's look at their 43-101s and see what resource they found and how much drilling it took to get that resource. And what would the resource be worth in situ, i.e. In ground, using a current price curve at the time we were doing it, which is like last January. And this was just to give us a feel for prospectivity. How likely are we to make additional discoveries with our drilling and is this an interesting subset.

12:57 So when we did the math, we basically showed that telemetals, which is, I would say, what we would like to be when we grow up in terms of they've got a market cap of, you know, sort of 450 million, 460 million, something like that these days with a now a 10 million ton PEA out there. So that's sort of what those things are worth. And basically their value per meter drilled was around $42,000, which is a pretty good number. Palladium-1 is around $70,000 and we're around $94,000. So it's not, you know, like all statistics has to be taken with a measure of caution, but it certainly suggests that this is a prospective piece of ground and that it certainly deserves to have more drilling done to see if we can't turn this deposit into a mine.

13:53 So that's what we're basically doing. I'll give you a little backdrop on Nickel and why we think it's so exciting. A couple of slides here sort of speak to basically the Nickel in car batteries is just rising dramatically. And I think that latest thing is that it's going to go from I think 39% by weight up to 55% by weight And the reason why is that within the nickel, within the battery, you know, sort of composition, nickel is the cheapest material. So to the extent that they can maintain performance and substitute more nickel versus lithium or cobalt or the other products that are in there, then obviously it makes sense to do so because it brings the cost of the batteries down. So that's really what that slide speaks to.

14:43 The other point that we would make is that, not all nickel is created equal. You basically need nickel sulfates because of the purity of the nickel that's required for the batteries. Batteries are very sensitive sort of metal chemistry. And so it's not really cost effective at the current technology to take laterites or recycle nickel and make it into battery nickel. So that's why any nickel sulfate project that you find that has a commercial amount of tonnage is very likely to get produced very rapidly. So, and this is that pie chart I talked to you about about the the movement towards nickel and it's growing and I mean you can do any amount of googling online about the nickel forecasts and it's super bullish on the price curve and the supply and demand gap. So we can expect the economics to continue to improve for Nickel for the next several years because there's not any really big monster Nickel deposits coming on stream.

15:46 Where we're located is in a very interesting sort of area. It's seeing a lot of mine development and that's good. We're not going to be the first mine there. That means supply chains have been established, workers are available. In this area, the native owners of the land are the Cree. The Cree are very cooperative with mineral development. They're very pro-mineral development. They've got an excellent working relationship with our partners, Critical Elements. We've been able to piggyback on that. We're drilling now to advance the deposit forward. The other deposit is in the neighbourhood, just 5km down the road from us is the Namasket Lithium mine that's being put in commercialized right now.

16:37 It's fully built and it's just getting their production running. We're across the street from a major Hydro-Quebec substation. When you think of the ESG possibilities for this mine to become an all-electric mine, it's certainly within the realm of possible and would be very economic for us to do so. So not only are we making nickel as a green petal, but our ways to make it here will be green as well. That'll be helpful because more and more, the ESG implications on these mining investments is an important part of it. And then there's a couple other mines, the critical elements, which are just waiting for their final provincial permit and they'll I think start turning the shovel to build that next year.

17:22 And then Galaxy as well. So it's good that there's a lot of development up there and you basically get a rail terminal just to the left of the screen that takes, potentially could take ore to Sudbury and then you've got the ports. So lots of interesting dynamics to this location. And thankfully, because it's in Quebec North, it's eligible for super flow through. So you get you know in our last financing where we did a share at 25 cents for like non-flow through and And then we did a flow through round at 40 cents. So a 60% premium. So because of the super flow through, you really get a super kick that you can give to the investors.

18:11 And that's really been beneficial. So as we go forward, we'll look to take advantage of that. So this is the start to look at some of the technical looks of the chart. And I'm going to skip that slide and go to this one. I find it more powerful. It's basically, you know, we hired a very experienced mind modeling outfit called 3D Geo. And Ken and Matthew and the team did a great job of modelling this for us. It's interesting how they saw the deposit through their lens. We're basically following on that in our drill program. And you'll notice that heavy concentration in sort of the red zone right there, that's what we're drilling right now is pretty low risk development drilling. So you'll see these are some of the serious high grade intercepts that we had historically.

19:10 So these are all sort of 2% plus nickel EQ sort of results and fairly serious intersections. And so what we're doing with our current program is where we're basically, that's it right there, we're basically stepping out from those known intercepts, 25 to 50 meters and based upon where we think the modeling suggests that the deposit is going and we're drilling. That will do 2 things. It will confirm the historical drill holes were accurate and that will allow us to post the technical 43-01 that's no longer historic. And then it'll also add tonnage. And we think it'll confirm that this thing is moving from 3 million tons to 4 1⁄2 or 5 million tons. And then with a window to it getting to 10 million tons and possibly more. So, and as we get, as the market begins to realize that this thing has a hotspot to make it to 10 million tons, then, you know, the 10 million ton PEA at, you know, Talamels, you know, they're worth now $450, $500 million.

20:20 So, you know, we're worth, I don't know, 12, 15 right now, depending on what the stock is today. So it's a tremendous bargain. We've got 30% of the material that they have, telemetals, and they're at like, let's call it 450 million. So 30% of that would be 140 million. Today we're like a tenth of that. So it just doesn't make sense. So it's obviously end of the year, a bit of selling pressure has been on the stock. But I think from a value perspective, tremendous value opportunity in terms of our view of where we're at and what we likely see coming. So we believe we're going to be successful with this drill program and we're going to have positive assays coming out in January and that'll be exciting for our shareholders.

21:12 The other point I would make is to the most part we're drilling around, if you look back at the slide, on the right-hand side, that's getting probably 85-90% of our drilling focuses on what we would call NISC Maine, which is where the core, that's really where the resource is right now. So it's all around there. So we'll be adding to that and that's our focus. And we can sort of see ourself doing quite nicely, adding some significant tonnage that way. Now, we also think NISQ West, we're gonna do a couple of holes there. So that's to the left-hand side of the screen. And that really would be new resource that will be added on that we think could be material. And it's open, you know, and could be quite interesting.

21:59 The other point we'd make is we've got 2 other spots that we think will contain very similar type of geology as our current discovery zone. We won't be drilling them this time. We'll drill those in phase 2 sometime next spring. But they're exciting to us because they represent the possibility to take this well beyond 10Mt. Historically, what happens with these deposits around the world is they tend to be pods. You don't just get 1 pod of nickel sulfate material. You tend to get multiple pods. That just seems to be how Mother Earth sort of, you know, divvies it up. So we'd be expecting that these pods would be productive, but we, you know, it gives us, I think, some big upside. But we felt like from a risk perspective, we needed to focus on NISK main for now to basically redefine this project as a really hot nickel sulfate play that could become a mine, it will become a mine, we think, And then translate that to the market so that our investors and the investment community understands the potential this has to become a mine and that would lead to a rerating of the stock and allow us to raise capital more creatively for our shareholders in the future.

23:20 Then we would look to obviously ramp up the drilling and then hopefully take this to 10Mt and then 15Mt and 20Mt, etc. Basically, as far as we can go in terms of where this deposit could be. The other interesting point on these types of deposits is sometimes they're stacked. Right now we've got 1 sort of feeder zone that carries the ore and it goes basically as close to the surface as 60m and down to about 300m. It's quite possible most of the drilling, probably about 90% of the drilling that we've done at NISC to date has been of 100 meters or less. So we're drilling some deeper holes in this round with a view that perhaps it's a stack system. So we might run across a second set of ore underneath there. That could be fantastic.

24:09 And then the holy grail would be, and this happens from time to time, is that these nickel sulfate deposits are basically a bit of a halo of a much bigger VMS deposit that would be lying underneath. So the interesting part, I look as an investor, is that we love the economics on just knocking out this to 10 million tons and making it into a 3 or $400 million mine and selling it, that makes all of our shareholders a lot of money and everyone will be happy. But there's optionality beyond that. We could make maybe 2 or 3 of those types of mines here and we could possibly get really lucky and who knows, maybe deeper there's a VMS. So the point is, it didn't cost us anything for that optionality. And that's sort of a good way to play this very risky business called mining.

24:56 So what's the action plan? Well, we're well in the midst of it now. So we basically modelled off the deposit using 3D. That was the first time it's ever been used on our plate. Back in the day when they were drilling it, they didn't have the benefit of doing 3D. The 3D group we used has worked extensively in this area. They did the last 2 mines up there. So they understand the geology, in addition to the data that we were able to supply, but they also understand locally how these things work. So that's very interesting, very beneficial to us. So as I suggested earlier, We're basically going to focus our drilling on the main NIST deposit as basically lower risk step out drilling. So we're not really taking any wildcat holes.

25:43 We'll add some strategically, but it's going to be all stuff that's been fairly close to known successful holes. So I would expect to get that. These assays are actually being shipped. We shipped a set this week to the lab and those results would expect to come in about, let's say 6 to 8 weeks. So let's say 8 weeks. So I'm thinking mid January is when we start to see these results sort of like the third week in January, that type of thing. So, and then we'd, you know, probably for the next 5 weeks, we'll start to be able to report on 2 or 3 holes a week. And hopefully that would be exciting time for us. So the program in total, we vote somewhere between 4 and 5,000 meters. And as I said, generally speaking, there'll be holes as little as I think, 100 meters is probably our smallest. And then as big as 350 meters is the biggest, or maybe 1 for 395.

26:42 After that is all done, we are working with the technical team. They were up and made a site visit yesterday. So they'll be preparing and ready to input the data for the assays into their current model and update that. And then they'll be in a position to do a technical report, a new 43-101, which we'd expect post drilling, probably end of Q1, probably early Q2. Once that happens, we would expect along this pathway, as the news gets out about our success, that there'll be a re-rating of the stock. The stock will advance materially and that would allow us to raise some additional capital in the spring and to drill another set of to follow up our progress in phase 1 and also to test the WellCat targets that we've identified that have the same geological signature as the deposit.

27:44 So pretty exciting time for NISK. They think this 2022 NISK could go hopefully into getting a PEA done by the end of the year. And that could be really exciting.

27:58 Second part of What we had was, of course, we had our Copper and Gold assets. At one point we were thinking of rolling out 2 separate companies, but now it makes sense, given Chile's situation to, which I'll comment on in a second, just to have one. It's going to be called Consolidation Gold and Copper. It'll contain all of our BC and Chile assets in the Copper Gold space, with the exception of our Royalty asset, which will remain in power nickel. I'll talk about the Rothias in a sec. Basically, the structure would be again, all this is subject to shareholder approval, but assuming that they would approve it, the current shareholders would get 20% of power nickel and power nickel would keep 80%. The reason why we do that is that sometimes when you I mean obviously we're transforming to a battery metal company. So people are you know that are buying the stock and have been buying it for the last year pretty much are battery metal investors to the most part. So we don't want them to basically sell the, you know, Copper Gold stuff because they're not into Copper Gold.

29:12 Or if they want to sell it, we want them to basically do it in a very calm fashion that we could manage. So 20% of the float would be easy enough for us to get copper gold investors to pick that up if our current shareholders decide that they want to rediversify their holdings. So that's probably why we've done that. And that will leave us with a structure, probably have been sort of in the 16 to 18 million shares of standing and about 3.6 or 4 million shares would be free trading or, you know, in our shareholders hands. So that would be very healthy stock, we think, and that will be helpful in terms of being able to raise capital for that business as it moves forward, beyond its initial tranche that we'll give it.

30:01 That will basically, we think, reflect also well for Power Nickel, who will obviously own the biggest stake of it. So timeline for this, it's been a bit of a bear to go through this whole process, which is probably why a lot of companies don't do it. But we're almost at the end of that. We're going to approve it at our annual shareholder meeting and look to finalize it. I guess the shareholder meeting now is going to be in January. So it would be probably in the Q1, early Q2 that would actually distribute the stock to the shareholders and go from there. So all this of course is subject to shareholder approval and we hope to get that done in the early in the new year. Now let's talk about it for a second, what's in it. So we're gonna have basically 2 sets of properties, the British Columbia property, the Golden Triangle, and the Chile properties, which are basically Zulema and TDO being the Palo Negro being the big 3.

31:00 So the Golden Triangle is up first because it's probably right now, perceptually, the most valuable piece that would be in there. We've got a very interesting property. It's right in the heart of the triangle, just outside the town of Stewart. We actually overlook the town of Stewart, so about 3, I think, 5 kilometers as the crow flies, 3 miles, something like that. So you can, if we are able to make a commercial discovery there, it'll be one of the easier places to commercialize in that whole area. And what's interesting is that if you look at this map, we're the yellow on the map, and you can see we're sort of surrounded by the pink and the darker greenish blue. And that, The pink is Scotty Resources and the darker green blue is a strike point.

31:52 Then just to the right of the Scotty Resource thing in the gray is Ascot Resources. Ascot has now been funded to become a mine. So it's, that's happened since we acquired the property. So that's whenever a mine was up near you, like in this case, a couple of kilometers away, that's very beneficial because it means that, you know, and I'll like that if you make a resource discovery that it's going to get produced. So you're going to get some value for it. So so we feel like that's really a positive for us. And it's interesting, like the the strike point in Scotty Resources are in around the 40 million market cap for their project in that in that area. And and it's it's it's interesting because we think that we've just done some work on the project this summer and we'll have a release on that probably next week and update people. But It looks like we've discovered some interesting new Gold and Copper zones that hadn't been tested.

32:55 Nothing's been drilled in this project period ever. They've only ever done a little bit of trenching and sampling, which is what we did as well. It looks like even with that, they missed some very interesting sections where we had some really great gold and copper hits. We think that this is a very prospective target and we're looking forward to getting on there next spring and drilling that. In Chile, Chile is interesting. Obviously, we were Chilean metals just a few months ago. So Chile has been the focus for many years for our company, and we have a great portfolio of land down there.

33:41 The challenge right now in Chile is that Chile is going through a bit of a thing, I guess, with their constitutional debate. And that's probably gonna take another 6 months for it all to be sorted out. I suspect they'll sort things out and it'll be fine. There may be some changes to the Mineral Act and it could make economics somewhat different there. So our view for the most part right now is we're basically keeping our options open in Chile, maintaining our land packages, but we're not drilling right now. And so we'll see where that takes us over the next few months. And hopefully they'll have a healthy constitutional debate and solve any sort of lingering issues. And Chile will remain a very fine jurisdiction to work in and we'll move forward with it. But until that happens, we're just keeping our, you know, putting our money really where it can get better return for us in BC and more particularly in James Bay and Quebec.

34:41 So, you know, I won't get into great detail on Zalema. I mean, what's interesting there is that there's some, you know, we're fairly close to the Candelaria mine and we basically border it property package-wise. Candelaria is going to run out of ore in about 6 years. They're quite interested, Lundin, in our progress here. We did some more geophysical work there and we've got some interesting targets we'd like to get into, but you know, as this will happen once the situation in Chile calms down. I mentioned that the royalty that we have in our Chile will be remaining with Power Nickel. This royalty is basically, it's a very sweet asset. I mean, basically we have a 3% royalty.

35:32 We thought when we sold it 6 or 7 years ago that it would have been producing now, we'd be starting to get cash. And when this thing starts to kick out, it'll be $8, $10, $12 million a year, that type of royalty payout. So it's significant. But unfortunately, they went a different pathway tech on their development plan for QB2. So this got delayed. So this probably means it's 5 years plus maybe 10, somewhere in that range, 5 to 10, where before we'd see revenue from this. Now, what'll be interesting is we do know that this deposit is certainly economic at current price points, and these are the types of things that are being developed these days. So I would expect there will be another development plan.

36:20 Once they get QB2 up and operational, they'll turn their forces to getting this next, you know, QB3 out the door, and that will be us. And we will get a very significant royalty when that happens. So that'll be a really nice benefit to have down the road.

36:39 You know the team has been with us now for some time. You know thankfully I've been blessed with really supportive board. Good folks that are all significant shareholders as well. Greg came from the mining investment banking side of things. He was at Haywood as MD and other firms. Now he runs a silver mining company in Mexico. Peter is a very accomplished lawyer. He's retired as a lawyer, but brings that astute legal mind to the helm and has guided us through all sorts of interesting things that you run into as a mining company. Les has been a very common sense businessman and a voice of reason. So I've been really blessed to have these guys as my support group and advisors and overseers as a board And they've done a really great job. Jimena is our, runs Jelly Forest. She's a great geologist, very, very nice person. Done a great job for us down there and kept us in the game in a very lean way. Cause when you're, you know, these have been lean markets for junior mining companies. So if you're spending wantonly, you're not going to be around very long. So we've been very careful with our money and we've gotten good leverage on it. So now we're finally, you know, at a point where we can start to get some, finally some much deserved payback for our shareholders.

38:06 And thankfully it's people like this that have helped to make it happen. Our cap structure is pretty good. I mean, it's 84 million shares outstanding. We've got some warrants that are, you know, we're starting to get, you know, we've had some warrants get exercised in the last little bit. So they're probably that'll happen over the next, you know, 2 or 3 months that more of that warrant money will come in because we think the stock's going to move. And that typically is what happens. People exercise when they're in the black. And basically, Treasuries, we've got about $1.7M or so, And we've already paid a bunch of our drilling and stuff. So we'll need to raise money, but we'll raise money after the drill results are out and the stock has its chance to reflect the re-rating that should happen when people really realize that this thing can become Canada's next Nickel Sulphate mine.

39:11 In wrapping it up, before we go to questions, what would be our top 10 reasons why you should look to invest in Power Nickel now? I think first and foremost, these acquisitions, we first acquired Golden Ivan and then we acquired NISQ, basically redefined the company, moved it from a Chile basis to really a Canada basis, where we're in the 2 best jurisdictions in Canada, I think in BC and Quebec, at least from a tax perspective. They both have super flow-throughs and that's super good for us as advancing it from a financing perspective. We raised money and we've been offered money at these prices. We just said no, because we're putting the money in the ground and We're in the midst of this drilling right now that I think is going to transform the company and people will see that, holy cow, these guys have really got a shot to become Canada's next Nickel Sulfate mine. And if that happens, then that's going to lead to a tremendous rating of our company.

40:16 The NISQ acquisition had great potential for expansion and we certainly are capitalizing on that right now. The battery metal sector is super hot. Nickel, copper, cobalt, NISC has it all. So, I mean, the revenue per pound there, or per ton, could be like 400 bucks, which is phenomenal, Brock. And then, as we discussed, we're spinning off our copper gold assets. These are cherry assets. They were basically worth what the stock is worth right now, this time last year. So as I said earlier, you're getting something for free. Either you're getting the copper gold for free or you're getting NISK for free, but something and by spending it out into its own entity, that will allow that to be materialized, I think. So that'll be very beneficial for shareholders.

41:10 The leadership team is well-connected. We were able to obviously acquire these, make these great acquisitions because of this network that we've been able to build. And we continue to leverage that to grow as we move forward. I think as an investor, I know in mining, if I like the geology that's being worked on, I love to invest when they're starting to drill. Because if I like the geology and I'm a believer in the story, then I know that drilling will unlock the value. And that's what we're doing right now with NISK. We're drilling, in this case, it's low risk step out drilling. So I think we'll basically prove to the market that, yep, this can become Canada's next Nickel sulfate mine. We expect we'll end up getting a revised 43-101 in Q1, I'm thinking now probably early Q2.

41:58 We think, relatively speaking, we're trading at super low value relative to our nickel peers. If you look at a broad cross-section of nickel stocks and their prospects versus ours, I would argue that we're the best nickel deal in town. And we're also, as I said, in an area where we can use super flow through financing. So we were able to use that last time to great effect. I think we were able to get to almost a 60% premium for our shareholders. And that's just means less shares being issued, which means more value per share for our current shareholders. So it's a great jurisdiction to do that. So I think that pretty much wraps up, you know, why we're bullish at Power Nickel and why we're pounding the table now saying, hey, you know, if you're investing in the battery metal sector space, you certainly should be looking at Power Nickel as a part of your portfolio.

42:53 And we're not ashamed to say you should really consider it and get some Power Nickel for Christmas. It'll be a gift that keeps on giving. Kim, I think that's the summary for now. Happy to answer any questions from our audience and we can take it from there. Absolutely, thanks a lot for that, Terry. I'd like to remind the audience that you can ask any questions you like using the Q&A tab found on the right-hand side of your screen, time allowing. We'll of course get to them. Terry, we have had some questions come in in advance of today's summit though. Some of them are probably gonna retread some ground you've covered, but I think that could be still a good chance to reiterate some highlights. Yep. First question, how's the drilling going? Could you talk to us about that? Yeah, you know, I mean, what can we say about the drilling? Well, we're into our fifth hole now, so that's good.

43:44 The first 3 holes, I think, have been sent to the assay labs. Obviously without assays we can't really comment. We don't really know until that happens. But we do know that The ore that carried the pay grade nickel sulfate, the metals package that's the pay dirt is in a period type of structure, rock. And so that's a very distinctive looking rock. So what we can confirm is that, you know, with the new drilling, we have hit that rock. So we've hit that rock, every bit as good as before, and in some cases better.

44:30 And so we're quite bullish that, you know, that's basically all we can hope for. That's what we're trying to find. Now, of course, we have to confirm that it's still carrying the pay dirt and that's what assays will be for, but we're pretty stoked about what we're seeing so far. Great, that sounds awesome. Can you talk to us a bit more about those results that you just mentioned. Anything you'd reiterate or get into further. Yeah I mean I mean assays are you know as because the money world has been heating up a little bit. You know, there's a bit of a crush at the assay labs all over North America. So response time is slow. And I think COVID has probably, you know, has aspirated that issue. So we've been told 6 to 8 weeks in terms of getting the assay results. So I would caution, I would say, you know, especially with this time of year, Christmas, et cetera, we should be thinking 8 weeks, you know, so if I think if something went in at the end of last week, you're probably looking at third week in January to get our first results.

45:37 And then I think once we start to get them, then probably every week or 10 days, we'll get another batch and we'll be releasing them as we get them. So probably that would be the timeline I would be thinking of sort of like 3rd, 4th week of January, you know, and then from there, probably another 5 weeks to get all the results. Great, thank you for that. Mooney in the audience was wondering if you had any thoughts to share about the current share price. If you have any thoughts or worries about its underperformance, if it is underperforming, or your competition with similar peers? Yeah, you know, I mean, basically, I think we've just had a lack of material news. Now that we're drilling and people can expect that we're gonna generate some results shortly, I think that's when these things start to move. Right now we're in that sticky time of year where you have some tax loss selling.

46:36 So generally speaking, stock was at around this level last year, then went up and then it's come back down. So you may have some people that are selling it as a tax loss. I don't know, I wouldn't recommend it because I think we're gonna be back to those old highs very soon. So, but you know, what we're gonna be doing really over the next, the first part of the year is press a lot more investor relations buttons, get the story out there using people like 6X and others to just to, you know, remind people of the potential, you know, 10, 20, 30 bagger that could happen here very realistically. And that's a big, big, big possible win. So at some point we think investors will pick up on that.

47:23 And we think it'll be a lot easier to make that case once we get rid of the historical, you know, definition on the 43-101 and now it becomes a current 43-101. And they actually sort of see, wow, this thing has got maybe 4 and A05 million tons at that point, and it can become 10 million tons without a great deal of imagination. And then maybe there's something more. So all of a sudden, this thing is gonna get very romantic, I think. And so I'm not, of course, I wish the stock price was much higher than it is right now today, but I can't be distressed about it because we are doing the right things in terms of moving the business forward and executing the game plan. At the end of the day, if we deliver the results that I'm expecting, then the stock will respond and our shareholders will be rewarded.

48:14 Absolutely. What are the expectations for this round? You know, I would say 2 primary things. 1, I think we're gonna confirm the old historical resource and turn it into a current 43-101. And then I think we'll expand it. So we'll show just that, you know, because we're doing a lot of confirmation drilling, we won't be adding as much tonnage as we ordinarily would have perhaps, but probably we, hopefully we can push in, in, in 4 to 5 million tons, you know, of 2% Nickel EQ. And with a view that people, once they look at the deposit, and it's going to be open in several directions, that they'll see that, wow, these guys could easily get 10Mt and perhaps something much more. So I think that will really allow us to reposition it as, hey, this is going to become Canada's next Nickel Sulfate mine. And what's that worth?

49:09 And it's worth a hell of a lot more than where we're at now. So that'll be my mission in life to get that message across. And we'll be working quite aggressively on the IR side to make sure people are aware of that opportunity. And at that point, you're going to start to get, we'll have industry people coming to try and buy this mine. So this will, you know, battery developers and car developers will be getting, they're going, this is a thing, they're going to go much more vertically integrated because they need this source of supply. It's going to be scarce. So if we can deliver the goods on the grade and show that the tonnage can be there, this definitely the stock's gonna respond. Absolutely. So could you talk to us more about what's happening with the spin out?

49:58 Yeah, so with the spin out, basically we're gonna call it consolidation Gold and Copper. It'll contain our Golden Ivan property in BC and our Shelley properties. It'll have an initial amount of capital for the first year effectively. It'll actually have a budget to go forward with. So it'll land on its feet, so to speak. And it'll have about around, roughly speaking, cause we're expecting some of those warrants to exercise, probably around 18 million shares is what I think he is, something in that range, and of which 3.6 or so would be dividended out to via a plan of arrangement to our existing shareholders.

50:43 So the way to look at it, I think, is that for every 25 shares of Power Nickel you have, you'll get 1 share of the new co. And that new co will only have 18 million shares outstanding. So I think it'll be a very interesting share to receive. And we think we have really high hopes for what we can do with the Golden Ivan next year. And we're hoping that Chile will come back in the favorite nation's status and give us something to be excited with there as well. Absolutely. Thank you for that, Terry. Listen, as we come close on time, I'd like to remind everyone in the audience that if you think of any questions after the fact, after the summit is over, you can of course get in contact with Howard Nickel directly through the contact information you can see on your screen now. Of course, we'll also be sending out a short survey that you can fill out and you can indicate if you'd like to continue the conversation through that medium.

51:35 But Terry, I'd like to pass it over to you again, just for some final closing words before we close up shop for the day. Yeah, I guess I would, you know, I would just encourage investors that, you know, one of the best times to bargain shop in the Canadian equities market is right now. It's tax loss selling season. So quite often companies that have had, in our case, stocks got as high as 45, 50 cents. Now it's at 15. So some people may be frustrated and selling, which is unfortunate because I feel badly that, you know, because we feel like we'll be there shortly again. But nonetheless, this does happen. So it's a great boon for people that haven't, you know, got the amount of shares they want or want to enhance their position. It's on sale. There's no question about it right now.

52:26 If you like the electrification and see that as a theme that's going to be moving forward, which I think is unquestioned, then for sure it's going to empower the Nickel space because that's a big part of it and Copper and Cobalt and Palladium. So all of a sudden these price curves are going to be very beneficial for mine developers. And it's going to be very easy to, once you prove there's a resource, to get financing and build the mine. I think in the last month or so, the US government has put Nickel on the strategic mineral list. That means they can do certain government grants and interesting things and the candidates consider it part of their strategic area.

53:14 It's really a great time to be looking in that space. I'm a bullish in the Nickel, Lithium, Cobalt, Palladium area particularly. And I think it's a great time as an investor to be looking in that area. And we urge you to consider Power Nickel as part of that, because we think, relatively speaking, price per value unit, we don't think there's a better value play out there in Nickel than us right now. You've got to believe that this Nickel historical resource is not a fantasy, that it is in fact a reality. We're going to show that shortly through our drilling.

54:00 Once that happens, I think there'll be a re-rating. And that will be, that's just around the corner. So it's not like you have to wait for 6 years. It's, we're gonna be doing a lot in the next couple months to create a big value, I think. And I think it's a good speculation, very good speculation here right now. So I guess that would be my final thought. And I wanna wish everyone a happy holiday season. Thank you for your patience. It's been an interesting year. I think we've made a lot of progress business-wise. We haven't made as much progress stock-wise as we'd like, but we're confident that we've turned the corner for the company and that the future is bright. We're looking forward to delivering the goods for you in 2022.