Power Metallic Mines (TSX-v: PNPN) / (OTCQX: PNPNF) is advancing its large, 330 sq. km NISK/Lion project in northern Quebec, centered on the Lion zone, one of the world’s highest-grade copper (“Cu“)-PGM discoveries on earth.
How high grade? The best drill interval last year was 16.6 m @ > 15.1% Cu Eq. (March 2025). Importantly, that was far from a one-hit wonder. Last month a slightly better (width x grade) interval was announced, 22.0 m of 11.5% Cu Eq. Please note, Cu Eq. grades differ over time depending on relative metal prices when holes are assayed.
The simple average width of these top eight intercepts is 23.7 meters, at an average 10.1% Cu Eq. The weighted average Cu Eq. grade is 9.3%. Understandably, management is excited that three of the top eight results since 2024 were from May 2026.
See latest corporate presentation here.
Analysts suggest the current resource estimate at Lion alone could be 7–14 million tonnes @ 4.5–7.0% Cu Eq., with ~40% Cu, ~45% platinum/palladium, ~10% gold, and ~5% silver.
Earlier this year, management reported a metallurgical breakthrough that the market largely ignored. Locked-cycle tests from SGS delivered ~95% preliminary recoveries vs. the Company’s 80% assumption.
On an objective, industry-benchmark basis, preliminary recoveries in January were world-class for poly-metallic sulphide systems. Near 99% Cu, and 94–97% palladium/platinum sits at, or above, the high end of ranges.
Management believes production is possible within five years. Initial, preliminary, metrics suggest a smaller, faster, high-return scenario. While five years could be deemed aggressive, NISK/Lion is in Quebec, not at 4,500+ meter elevation in S. America or in Russia, Mongolia, or Africa.
CEO Terry Lynch a thought leader in junior mining space
NISK/Lon has good community and First Nation support (James Bay Cree), is very near low-cost hydroelectric power, and has ample access to water, workers, services, and equipment. CEO Terry Lynch envisions roughly two years of permitting and two of construction.
Having strong metallurgy and very high grades in Quebec as opposed to places like Siberia, Russia (Norilsk), South Africa (Platreef) or the DRC (Kamoa-Kakula) is an added bonus. When pundits talk about the next few decades of Cu/PGM/Ni discoveries, they point to Indonesia, Zimbabwe, Indonesia, and Zambia. I prefer Quebec.
Many lower-grade, much larger, Cu-heavy projects have upfront cap-ex burdens well over a billion dollars, post-tax IRRs under 20%, and ratios of post-tax NPV to cap-ex near 1.0x. With Lion’s monster grades, I believe (not necessarily the views of management) Power Metallic’s NPV/cap-ex ratio will be at least 2x, and its IRR at least 35-40%.
Readers can run scenarios (using estimated grades, throughput, recoveries, metal prices, capital intensity, etc.) through ChatGPT, GROK, and Claude, but the December PEA will deliver definitive results.
Backers of Power Metallic include legendary mine finders/builders Robert Friedland, Rob McEwen, Gina Rinehart & Eric Sprott. Billionaires like these, (reportedly 16 in total), have expert teams that conduct extensive due diligence. NISK/Lion has been, and continues to be, carefully vetted.
Near-term investment catalysts include; drill results from an ongoing 100,000 meter program, a maiden resource estimate (“MRE“) in July/August, a PEA in December, and a possible NASDAQ listing in Sept./Oct. The NASDAQ listing could trigger index & ETF buying of Power Metallic shares.
The fully-funded, 100,000 meter drill program has been a major success. Shallow drilling is going well, especially in the Lion zone where most of the work has been done. In addition to blockbuster intervals, infill drilling is showing robust continuity. As mentioned, the best result to date is 22.0 m @ 11.5% Cu Eq.
Four targets (Tiger Deep, Elephant, NISK West and Hinge/Hydro) point to the likelihood of a district-scale project. And, new discoveries are quite possible, some might say expected (eventually). Even without new discoveries, management believes NISK/Lion is large enough, and growing, to be a standalone mine. Bring on the PEA!
On May 26th, positive metallurgy on low-grade disseminated zones (98.3% Cu recovery) was announced. This is important as it enables lower cut-offs and more tonnage in the upcoming MRE & PEA.
New to the Power Metallic story is a partnership with Adion Technologies for borehole muon tomography imaging. What is that? Cosmic rays pass through the earth, but metals have different densities that impact the speed rays travel through them. Copper & PGMs are denser than surrounding materials. That contrast is detectable.
After a MRE this Summer and a PEA at year end, I believe Power Metallic could land a strategic partner. To be clear, unlike most juniors, it might not need one. The Company is cashed up, it just raised C$28M, and has a 16-member billionaires club backing it. What types of investors might care?
Sovereign Wealth Funds, trading companies (Glencore, Trafigura, etc.). Private Equity (Blackstone, KKR, etc.), Japanese/Korean conglomerates (Mitsubishi, Sumitomo, Mitsui & Co, POSCO, etc.), and traditional miners (Teck Resources, HudBay Minerals, First Quantum, etc.).
Given Power Metallic’s enterprise value of just ~C$240M, dozens of groups could/should care about a world-class, low cap-ex, high IRR, poly-metallic project in Quebec, Canada. Several of the billionaire shareholders could fund help NISK/Lion themselves, or make key introductions to numerous interested parties.
A quick mention of Saudi Arabia, where the Company has potentially valuable assets. Smart money is invested there, some making large bets. Names like Friedland, McEwen, Rinehart & Anil Agarwal, among the world’s best mine finders/builders/financiers.
They look everywhere on earth for juicy projects, yet are excited about wildly under-explored Saudi Arabia. Power Metallic holds 100% of the ~200 km² Jabal Baudan exploration license in the prospective Jabal Sayid VMS belt (~150 km south of Jeddah).
The land package is prospective for Cu-Au-Zn, near the world-class Jabal Sayid mine. A May 2026 JV with Amaar United Mining Co. provides a highly scalable 50/50 platform for future license auctions. Power Metallic will act as technical lead/operator; Amaar will deliver local coordination, connections & investment.
The JV is highlighted by an initial US$10M work program (Power Metallic $2.5M, Amaar $7.5M), going to 50/50 thereafter. Jabal Baudan is prudently advancing via modern geophysics & reconnaissance toward drilling.
NISK/Lion is by far the main focus, but could Saudi Arabia become a meaningful (valuable) asset later this decade? I think it could, and investors get that option for FREE.
Most Cu-heavy juniors like Power Metallic Mines (TSX-v: PNPN) / (OTCQX: PNPNF) have been sold off along with Au/Ag juniors, yet Cu is just 7% from its ATH, while Au/Ag are down 39%/52%.
This makes no sense. Especially for Power Metallic, that has delivered game-changing metallurgical news & drill intervals, and has impactful news coming (more drill results, MRE, Nasdaq listing, PEA).
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