Power Nickel Inc (TSX-V:PNPN, OTCQB:PNPNF) shares moved higher during Monday’s session after the company unveiled additional positive results from its summer drilling program at the polymetallic Lion Zone, situated 5.5 kilometers away from the Nisk Main Zone at the Nisk project in Quebec.
The results demonstrated continued successful westward expansion with high-grade copper equivalent intersections, including 19.6 meters at 3.82% copper equivalent (CuEq).
In a post-announcement call, Power Nickel VP exploration Kenneth Williamson highlighted that the summer drilling, particularly in holes 69, 70, and 71, has identified thick, high-grade copper and palladium-rich sulfide bands, with hole 70 a “gorgeous” stand out with 32 meters with 6.79% CuEq.
He added that the results from the program support the company’s hypothesis that the Lion Zone may link up with the Nisk Main Zone, potentially unlocking additional resources.
Power Nickel CEO Terry Lynch added that he believes the Lion Zone is “truly a force of nature” and that it could be “one of the most compelling mineralizations ever discovered in Canada".
“We’re certainly tracking along that pathway,” he said.
The CEO told investors that the use of downhole electromagnetic (EM) surveys is allowing the company to guide its drilling and better model the deposit.
“With holes 70, 71 and 72 we did that, and it suggests that going west looks very favorable,” Lynch said. “We’re getting smarter as we go along … and it’s really going fantastic.”
The first results from the company’s winter drill program are expected by late November or early December, Lynch added.
Shares of Power Nickel were up almost 6% at US$0.55 in the early afternoon on Monday.
Lynch said that while the company’s share price has quadrupled over the past year, Power Nickel like other junior miners remains impacted by aggressive short selling, an issue the company continues to address.
“There’s no question in my mind that is the sole reason why our stock is not much higher, given the success of what we have delivered to date and the value in the ground,” he said.
“If you have a world-class resource, which is what we’re building here, you’re going to be a world-class valuation,” he concluded.