Power Metallic Mines, Powerful Pending PEA
Power Metallic Mines (TSX-v: PNPN) / (OTCQX: PNPNF) is advancing the large, 330 sq. km NISK project in northern Quebec, centered on the high-grade Lion zone — an ortho-magmatic Ni-Cu-PGE system. Lion is one of the world’s highest-grade copper-PGE discoveries.
Drill results have been strong, especially at Lion. The best hit to date, from earlier this year, is 16.55 m @ > 15% Cu Eq. Management, led by CEO Terry Lynch, points out that 78 of 95 holes have returned > 11m @ > 4.24% Cu Eq. See new Power Metallic presentation.
Note: 4.24% Cu Eq. equates to ~3.7 g/t Au Eq.
Importantly, mineralization starts near surface and extends to ~750 m. New near-surface “ribs” (sulfide channels) suggest multiple parallel mineralized trends, adding considerable tonnage potential.
Analysts suggest the current resource estimate at Lion alone is 8–13 million tonnes @ 5–7% Cu Eq., with ~40% copper, ~40% PGEs, ~10% gold, and ~5% silver.
Earlier this year management reported a metallurgical breakthrough that the market ignored. Locked-cycle tests from SGS delivered ~95% preliminary recoveries vs. the Company’s prior 80% assumption.
Copper came in at ~98.9%, platinum 96.8%, palladium 93.9%, and gold 85%
This nearly 20% value uplift from the 80% assumption removed a key poly-metallic technical risk, confirming the potential (subject to a 4Q/26 PEA) for a robust standalone mine plan.
Management believes production is possible within five years. These initial metrics suggest a smaller, faster, higher-return scenario. Cap-ex is expected to be around US$400M.
Based on comments of cap-ex as low as US$400M, strong preliminary recoveries, a capital intensity slide (page #17) in the corp. presentation and an assumed $4.60/lb. Cu Eq. price, we should see a robust post-tax NPV(5%) and IRR.
Many lower-grade, much larger Cu-heavy projects have upfront cap-ex burdens well over a billion, even above two billion dollars, IRRs below 20%, and ratios of post-tax NPV to cap-ex near 1x.
With Lion’s monster grades, I believe Power Metallic’s NPV/cap-ex ratio will be closer to 2x than 1x (my opinion only). Readers can run scenarios (using estimated grades, throughput, recoveries, metal prices, capital intensity, etc.) through ChatGPT, GROK, Gemini, Claude…
Yet, the Company is valued at under C$265M (including last reported cash of C$31M on 9/30/25). CEO and very large shareholder Terry Lynch points out that the PEA will be a snapshot in time. In 4Q/26, drilling will be well ahead of the resource estimate.
Management was disappointed that January’s metallurgical results did not generate more excitement. The results were strong, and equally important de-risking. From what’s known so far, the flowsheet in the PEA should be straightforward, low technical risk.
Backers of Power Metallic include legendary mine finders/builders like Robert Friedland, Rob McEwen, and Gina Rinehart. Billionaires like these have expert teams that conduct extensive due diligence. They invested BEFORE the metallurgical results…
Near-term catalysts include continued drill results, every 3–4 weeks, a major resource update by August, a PEA in 4Q/26, plus a potential NASDAQ listing & strategic investor in 2H/26. A NASDAQ listing could trigger index & ETF buying of Power Metallic shares.
I spoke at length with CEO Lynch, a true thought leader in the Canadian metals/mining space. I asked only four questions because he has several recent YouTube interviews available for viewing. Here are two good ones… {April 9th} / {March 31}.
What have been the main surprises or takeaways both positive and negative on the drill program?
Our fully-funded drill program has been a success. Shallow drilling is going really well, especially in the Lion zone where we’re doing most of the work. Lion has a lot of low-hanging fruit for our new resource & maiden PEA. We’re studying open-pit starter scenarios.
In addition to several blockbuster intervals, infill drilling is showing very good continuity and high-grade mineralization in all directions. Overall, results are coming in above expectations. Lion-style sulfides are now confirmed at new East/West targets.
Four regional targets (Tiger Deep, Elephant, NISK West and Hinge/Hydro) point to the potential for true district-scale. We’re excited to have numerous targets, all of which are encouraging.
Additional new discoveries are possible, indeed given the history of other ortho-magmatic deposits, new discoveries are statistically probable.
We released new assays on April 15th. Drilling at Lion continues to deliver, which should be very supportive to the starter open pit. The drill bit is directing us to more structures. We have 37 holes in for assay. We’re drilling our last few holes of the winter campaign.
Your team expressed surprise that the market largely ignored excellent metallurgical results from January. Please describe the results, comparing them to peer projects.
On an objective, industry-benchmark basis, our recoveries are top-tier to exceptional for poly-metallic sulphide systems. Near 99% Cu, and 94–97% Pd/Pt sit at, or above, the high end of ranges. Peer Cu recoveries are often 85-95%, PGEs are usually lower than the mid-90s, and more variable.
The gold recovery of 85% is solid, especially for a complex multi-metal system. For comparable Ni-Cu-PGE deposits like Norilsk & Platreef, achieving high recoveries across all payable metals is uncommon, indicating unusually coarse-grained, clean mineralogy.
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.
Might Power Metallic look to secure a strategic investor? If so, when?
We have identified five groups of investor types who would be interested in acquiring a 10% stake in us.
1. Sovereign Wealth Funds…
2. Trading Companies (Glencore, Trafigura, etc.)
3. Private Equity (Blackstone, KKR, etc.)
4. Japanese & Korean Trade Cos (Mitsubishi, Sumitomo, Mitsui & Co, POSCO, etc.)
5. Traditional Miners (Teck Resources, HudBay Minerals, etc.)
The size of the prize could be much larger than the PEA will reveal, (subject to ongoing exploration + due diligence by strategic partners/acquirers). The new resource in late Summer could start the clock ticking for a strategic investor.
Main targets, all are promising, Lion the flagship (so far)
The Project could grow, but the entry price is low. Any C$2B+ group could acquire a 9.9%/19.9% stake, AND fully-fund cap-ex for a small-to-medium-sized operation, with a meaningful chance of it becoming a larger operation, in safe, prolific Quebec.
You’ve said the Project could potentially reach production in five years? Pre-PEA, some might find that an aggressive claim, please explain.
Yes, I agree five years IS AGGRESSIVE for MOST pre-PEA projects around the world. However, NISK/Lion is in Quebec, not at 4,000+ meter elevation in S. America.
It has good community and First Nation support (James Bay Cree), is near low-cost hydroelectric power, and has access to water, workers, services, and equipment. We envision roughly two years of permitting and two years of construction.
Unlike most Cu-heavy projects, high IRR assets carry a nice margin for error, lowering the bar for strategics to complete due diligence in months not years. We think NISK/Lion should be right in the wheelhouse for dozens of global companies. We are already talking with some.
Thank you Terry, a very insightful update. I look forward to the upcoming resource and PEA!
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