TORONTO, Jan. 23,
2024 /CNW/ - Power Nickel Inc. (TSXV: PNPN) (OTCQB:
PNPNF) (Frankfurt: IVV) ("Power Nickel" or the
"Company") announces that, further to the Company's news
release dated November 29, 2023, it
has filed a technical report in accordance with National Instrument
43-101 Standards of Disclosure for Mineral Projects in
respect of its mineral resource estimate for the "NISK" Nickel
Sulphide project (the "Amended Technical Report")
located in Québec. No material changes were made to the resource
estimate announced in the Company's news release dated November 29, 2023.
The Mineral Resource Estimate presented herein in Table 1
is either constrained within a pit shell developed from a pit
optimization analysis or presented as underground mineral resources
using an appropriate cut-off grade and reasonable potential mining
shapes which include must-take material.
Table 1 - 2023 Nisk Project Mineral Resource
Estimate at a cut-off grade of 0.20% NiEq for the open pit
potential and 0.55% NiEq for the underground portion.
|
Potential
Mining
Method
|
|
In-Situ
Grade
|
Calculated
|
Class
|
Tonnage
|
Ni
|
Co
|
Cu
|
Pd
|
NiEq
|
|
t
|
%
|
%
|
%
|
g/t
|
%
|
Indicated
|
Open Pit
|
519,000
|
0.63
|
0.04
|
0.30
|
0.56
|
0.84
|
Underground
|
4,910,000
|
0.78
|
0.05
|
0.42
|
0.78
|
1.07
|
Inferred
|
Underground
|
1,787,000
|
0.98
|
0.06
|
0.45
|
1.11
|
1.35
|
|
|
|
|
|
|
|
|
|
Potential
Mining
Method
|
|
In-Situ Material
Content
|
Calculated
|
Class
|
Tonnage
|
Ni
|
Co
|
Cu
|
Pd
|
NiEq
|
|
t
|
t
|
t
|
t
|
t
|
t
|
Indicated
|
Open Pit
|
519,000
|
3,300
|
200
|
1,600
|
9,400
|
4,400
|
Underground
|
4,910,000
|
38,300
|
2,400
|
20,500
|
123,100
|
52,300
|
Inferred
|
Underground
|
1,787,000
|
17,500
|
1,100
|
8,100
|
64,000
|
24,100
|
|
|
|
|
|
|
|
|
|
Notes to Table
1:
|
1.
|
The independent
qualified persons for the 2023 MRE, as defined by National
Instrument ("NI") 43-101 guidelines, are Pierre-Luc Richard, P.Geo.
of PLR Resources. Jeffrey Cassoff, P.Eng. of BBA is the independent
qualified person for the Pit shell analysis and cut-off grade
calculations. Gordon Marrs, P.Eng. of XPS is the independent
qualified person for Metallurgy and Smelter Costs. The effective
date of the 2023 MRE is November 26, 2023.
|
2.
|
These mineral resources
are not mineral reserves as they do not have demonstrated economic
viability. The quantity and grade of reported Inferred Mineral
Resources in this MRE are uncertain in nature and there has been
insufficient exploration to define these Inferred Mineral Resources
as Indicated or Measured; however, it is reasonably expected that
the majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
|
3.
|
Mineral resources are
presented as undiluted and in-situ for an open-pit and underground
scenario and are considered to have reasonable prospects for
economic extraction. Reasonable potential mining shapes were
modeled, and must-takes were included. The constraining pit shell
was developed using overall pit slopes of 45 degrees in bedrock and
25 degrees in overburden. Mineral resources show sufficient
continuity and isolated blocks were discarded.
|
4.
|
The MRE was prepared
using Leapfrog Edge version 2023.2.0 and is based on 117 surface
drillholes and 3,835 samples, of which 96 drillholes were
intercepting in the Nisk Main Zone. The cut-off date for the
drillhole database was November 26, 2023 with hole PN-23-036 being
the last hole being included.
|
5.
|
The MRE encompasses one
mineralized zone defined by a constraining solid with a minimum
true thickness of 2.0 m. A value of zero grade was applied where
core has not been assayed.
|
6.
|
High-grade capping was
done on the composited assay data. Capping grades are as follow: 2%
for Nickel, 1.5% for Copper, 0.15% for Cobalt, 1.2 g/t for
Platinum, and 3 g/t for Palladium.
|
7.
|
Density values were
calculated for the Main Zone from the density of the host rock,
adjusted by the amount of Nickel as determined by metal assays. A
formula was calculated and validated using a database of measured
densities. Country rock density vary from 2.70 g/cm3 to 2.85 g/cm3.
The Main Zone density vary from 2.63 g/cm3 to 3.96
g/cm3.
|
8.
|
Grade model mineral
resource estimation was calculated from drillhole data using an
Ordinary Kriging interpolation method in sub-block model using
blocks measuring 5 m x 5 m x 5 m in size.
|
9.
|
Nickel equivalency
grade was calculated using metal prices (see below), metallurgical
recoveries, smelter payables and charges. Metallurgical recoveries
are 70% for Nickel, 44% for Copper, 79% for Cobalt, and 67% for
Palladium. Payables are 73% for Nickel, 69% for Copper, 27% for
Cobalt, and 78% for Palladium. NiEq = Ni grade + (0.2359 x Cu
grade) + (0.9388 x Co grade) + (0.1810 x Pd grade)
|
10.
|
The estimate is
reported using a NiEq cut-off grade of 0.20% for open-pit mineral
resources and 0.55% for underground mineral resources. The cut-off
grade was calculated using the following parameters (amongst
others): Nickel price: USD10.00/lb; Copper price: USD4.00/lb;
Cobalt price: USD22.50/lb; Palladium price: USD1,215.00/oz; CAD:USD
exchange rate = 1.30. The cut-off grade will be re-evaluated in
light of future prevailing market conditions and costs. The pit
shell optimization used the same parameters.
|
11.
|
The pit shell includes
3.6M tonnes of overburden and waste rock resulting in a strip ratio
of 7:1.
|
12.
|
The MRE presented
herein is categorized as Inferred and Indicated Mineral Resources.
The Inferred Mineral Resource category is constrained to areas
where drill spacing is less than 150 metres and the Indicated
Mineral Resource category is constrained to areas where drill
spacing is less than 80 metres. In both cases, reasonable
geological and grade continuity were also a criteria during the
classification process.
|
13.
|
Calculations used
metric units (metre, tonne). Metal contents are presented in
percent, tonnes, or ounces. Metric tonnages were rounded and any
discrepancies in total amounts are due to rounding
errors.
|
14.
|
CIM definitions and
guidelines for Mineral Resource Estimates have been
followed.
|
15.
|
The QP is not aware of
any known environmental, permitting, legal, title-related,
taxation, sociopolitical or marketing issues, or any other relevant
issues that could materially affect this MRE.
|
16.
|
The QP is not aware of
any known environmental, permitting, legal, title-related,
taxation, sociopolitical or marketing issues, or any other relevant
issues that could materially affect this MRE.
|
Table 2 below shows the sensitivity of the block model to
grade cut-off. The reader is cautioned that the numbers presented
in the following tables should not be misconstrued with a mineral
resource statement.
Table 2 - 2023 Nisk Project Mineral Resource
Estimate – Sensitivity of the block model at various cut-off
grades.
|
Potential
Mining
Method
|
Cut-off
Grade
|
|
In-Situ
Grade
|
Calculated
|
Class
|
NiEq
|
Tonnage
|
Ni
|
Co
|
Cu
|
Pd
|
NiEq
|
|
%
|
t
|
%
|
%
|
%
|
g/t
|
%
|
Indicated
|
Open Pit
|
0.10
|
522,000
|
0.63
|
0.04
|
0.30
|
0.56
|
0.84
|
0.15
|
521,000
|
0.63
|
0.04
|
0.30
|
0.56
|
0.84
|
0.20
|
519,000
|
0.63
|
0.04
|
0.30
|
0.56
|
0.84
|
0.25
|
514,000
|
0.63
|
0.04
|
0.30
|
0.57
|
0.84
|
0.30
|
509,000
|
0.64
|
0.04
|
0.30
|
0.57
|
0.85
|
Indicated
|
Underground
|
0.35
|
5,211,000
|
0.76
|
0.05
|
0.40
|
0.75
|
1.03
|
0.45
|
5,076,000
|
0.77
|
0.05
|
0.41
|
0.77
|
1.05
|
0.55
|
4,910,000
|
0.78
|
0.05
|
0.42
|
0.78
|
1.07
|
0.65
|
4,667,000
|
0.80
|
0.05
|
0.43
|
0.80
|
1.09
|
0.75
|
4,327,000
|
0.83
|
0.05
|
0.44
|
0.83
|
1.13
|
Inferred
|
Underground
|
0.35
|
1,842,000
|
0.96
|
0.06
|
0.44
|
1.09
|
1.32
|
0.45
|
1,808,000
|
0.97
|
0.06
|
0.45
|
1.11
|
1.34
|
0.55
|
1,787,000
|
0.98
|
0.06
|
0.45
|
1.11
|
1.35
|
0.65
|
1,744,000
|
0.99
|
0.06
|
0.46
|
1.13
|
1.37
|
0.75
|
1,667,000
|
1.01
|
0.07
|
0.47
|
1.16
|
1.40
|
"Our updated NI 43-101 technical report is an excellent start and
major first step to showing the significant commercial potential of
Nisk. We believe this Mineral Resource Estimate establishes us as
one of the world's best nickel investment opportunities. We are as
we speak drilling at Nisk looking to advance both Nisk Main, where
this resource is located, and to test the four large Ambient Noise
Tomography targets we have identified with our work with Fleet
Space Technologies. We believe 2024 will be an exciting year for
Power Nickel", stated Power Nickel CEO Terry Lynch.
The Amended Technical Report is dated effective January 19, 2024, with an issue date of
January 19, 2024, and is titled
"Amended and Updated NI 43-101 Technical Report and Updated Mineral
Resource Estimate for the Nisk Project, Eeyou Istchee James Bay
Territory, Québec". The Amended Technical Report was prepared for
the Company by Duncan Studd, P.Geo.,
M.Sc., of GeoVector Management Inc., Pierre
Luc Richard, P.Geo, M.Sc., of PLR Resources Inc.,
Gordon Marrs, P.Eng., of XPS |
Expert Process Solutions, and Jeffrey
Cassoff, P.Eng., of BBA Inc.
The Amended Technical Report updates the Company's technical
report titled "NI 43-101 Technical Report and Mineral Resource
Estimate for the Nisk Project, Eeyou Istchee James Bay territory,
Quebec" dated effective
May 17, 2022 with an issue date of
August 29, 2022 (the "2022
Technical Report") and addresses comments raised by staff of
the British Columbia Securities Commission (the "BCSC") in
connection with the BCSC's review of the 2022 Technical Report, and
that the disclosure in the 2022 Technical Report could not be
relied upon (as stated in the Company's October 6, 2022 news release) until supported by
an updated technical report containing compliant disclosure. In
particular, the Amended Technical Report includes updates to
satisfy the requirement for metallurgical analysis and a new site
visit to the Nisk Project by an author of the Amended Technical
Report, and includes results from the Company's 2022 and 2023 drill
programs completed subsequent to the effective date of the 2022
Report. The Amended Technical Report replaces the 2022 Technical
Report in its entirety.
Qualified Person
Kenneth Williamson, Geo, M.Sc.,
VP Exploration at Power Nickel, is the qualified person who has
reviewed and approved the technical disclosure contained in this
news release.
About Power Nickel Inc.
Power Nickel is a Canadian junior exploration company focusing
on high-potential copper, gold and battery metal prospects in
Canada and Chile.
On February 1, 2021 Power Nickel
(then called Chilean Metals) completed the acquisition of its
option to acquire up to 80% of the Nisk project from Critical
Elements Lithium Corp. (CRE:TSXV)
The NISK property comprises a large land position (20 kilometres
of strike length) with numerous high-grade intercepts. Power
Nickel, formerly Chilean Metals is focused on confirming and
expanding its current high-grade nickel-copper PGE mineralization
historical resource by preparing a new Mineral Resource Estimate in
accordance with NI 43-101, identifying additional high-grade
mineralization, and developing a process to potentially produce
nickel sulphates responsibly for batteries to be used in the
electric vehicles industry.
Power Nickel (then called Chilean Metals) announced on
June 8th, 2021 that an
agreement has been made to complete the 100% acquisition of its
Golden Ivan project in the heart of
the Golden Triangle. The Golden Triangle has reported mineral
resources (past production and current resources) in total of 67
million ounces of gold, 569 million ounces of silver and 27 billion
pounds of copper. This property hosts two known mineral showings
(gold ore and magee), and a portion of the past-producing Silverado
mine, which was reportedly exploited between 1921 and 1939. These
mineral showings are described to be Polymetallic veins that
contain quantities of silver, lead, zinc, plus/minus gold, and
plus/minus copper.
Power Nickel is 100-per-cent owner of five properties comprising
over 50,000 acres strategically located in the prolific
iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty
interest on any future production from the Copaquire
copper-molybdenum deposit, recently sold to a subsidiary of Teck
resources Inc. Under the terms of the sale agreement, Teck has the
right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property
borders Teck's producing Quebrada Blanca copper mine in
Chile's first region.
Neither the TSX Venture Exchange nor it's Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This message contains certain statements that may be deemed
"forward-looking statements" concerning the Company within the
meaning of applicable securities laws. Forward-looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects,"
"potential," "indicates," "opportunity," "possible" and similar
expressions, or that events or conditions "will," "would," "may,"
"could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, are subject to risks and uncertainties, and
actual results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties
include, but are not limited to, among others, the timing for the
Company to close the private placement or the second Nisk
option or risk that such transactions do not close at all; raise
sufficient capital to fund its obligations under its property
agreements going forward; to maintain its mineral tenures and
concessions in good standing; to explore and develop its projects;
changes in economic conditions or financial markets; the inherent
hazards associates with mineral exploration and mining operations;
future prices of nickel and other metals; changes in general
economic conditions; accuracy of mineral resource and reserve
estimates; the potential for new discoveries; the ability of the
Company to obtain the necessary permits and consents required to
explore, drill and develop the projects and if accepted, to obtain
such licenses and approvals in a timely fashion relative to the
Company's plans and business objectives for the applicable project;
the general ability of the Company to monetize its mineral
resources; and changes in environmental and other laws or
regulations that could have an impact on the Company's operations,
compliance with environmental laws and regulations, dependence on
key management personnel and general competition in the mining
industry.
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SOURCE Power Nickel Inc.