Power Nickel Inc (TSX-V:PNPN) has released initial results from its current drill program at its Nisk project near James Bay, confirming the presence of high-grade Ni-Cu-Co-PGE mineralization in the main zone and that mineralization extends by an additional 150 metres (m) at depth and to the east and below to the central portion.
The Canadian junior exploration company welcomed the news, saying that while assay results are still pending for most of the holes drilled to date, the results so far are very encouraging and continue to demonstrate the robustness of the system. Eleven holes have been completed to date for this second phase of drilling but assay results covering the mineralized target area are available for two holes only.
"From what we have seen in this drilling round we believe our aspiration to become Canada's next Nickel mine is something our drill bit is turning into a very high probability outcome. When compared with other high-grade Nickel sulfides exploration projects around the world, ours trades at a tenth or much less of the value. Results like this will hopefully cause investors to look at Power Nickel and Nisk in a new light," Power Nickel CEO Terry Lynch said in a statement.
READ: Power Nickel completes C$4.19M placing and plans drilling expansion at Nisk
The company noted that core logging has confirmed the presence of sulfide mineralization in the areas defined as targets and that such visual observation indicates that the mineralization extends to a minimum of 150 metres below the deepest know intercepts.
While such intercepts look promising, their description is based solely on visual logging of the core, for which assay results are pending. The presence of nickel is supported by XRF (X-ray fluorescence) measurements made as part of the core logging procedure but such readings should be considered indicative only. The extent of the mineralization should be determined once assay results are available and the company will update the market once these results become available, it said.
"The initial assays of our fall program are very encouraging for Power Nickel shareholders. These holes were drilled in an area where no resource was modeled and as a result, will not only help us better understand our deposit but also of course add substantial tonnage to our model,” the company added.
The PN-22-009 hole in particular shows that there will be solid very high-grade sections of the deposit which will raise resource grade and improve economics in any future mine plan. And, on the basis of such optimistic results, the company has recently announced that it would ramp up drilling by another 7,500m to 10,000m starting in the first quarter of 2023.
The Nisk Project is located in the southern portion of the Eeyo Istchee James Bay territory, Quebec, a region that is the site of a number of mining projects and improving infrastructure. The project is a known Nickel-PGE occurrence on which former operators have performed technical work at a relatively high level of expertise.
Power Nickel, which focuses on high-potential copper, gold, and battery metal prospects in Canada and Chile, completed the acquisition of its option to acquire up to 80% of the Nisk Project from Critical Elements Lithium Corp (TSX-V:CRE, OTCQX:CRECF) in February 2021.
Contact the author at jon.hopkins@proactiveinvestors.com