Power Metallic Mines catches analyst attention after strong metallurgical results from Lion Zone
Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) has drawn positive attention from analysts after releasing preliminary metallurgical test results from its Lion Zone at the Nisk Project in Quebec.
The lab-scale Locked Cycle Test (LCT) demonstrated exceptional recoveries of copper (98.9%), palladium (93.9%), platinum (96.8%), gold (85.0%), and silver (88.9%), generating a high-grade copper concentrate of 25.8%.
Hannam analyst commentary highlighted the potential upside, noting that “these results exceed the provisional calculation of 80% recoveries across all metals used by PNPN in its copper-equivalent grade calculations.” Analysts added that the high concentrate grade should “support a strong payability, with commercially attractive specifications opening the door to multiple potential customers.”
Hannam raised its target EV/resource multiple by 10% to US$275 per tonne and increased its sum-of-the-parts valuation for PNPN to C$2.38 per share, implying 51% upside.
Red Cloud Securities also welcomed the news, calling the results “encouraging” and noting that they suggest “higher concentrate grades and recoveries than anticipated.” Analysts there highlighted the potential for value-added products, including advanced materials for battery, energy storage, and clean energy applications.
The firm maintained its Buy rating and C$2.50 target price, citing the Lion Zone’s potential to deliver a resource of 7.5–10 million tonnes with an in-situ value of US$3.5–$5 billion.
Noble Capital Markets, initiating coverage with an Outperform rating, described Lion as a “high-grade, copper-dominant orthomagmatic polymetallic discovery that represents the core value driver within the broader Nisk land package.” The firm noted follow-up drilling at nearby Tiger Zone confirmed similar mineralization along trend, supporting the interpretation that Lion-style mineralization is repeatable. Noble set a target price of US$2.65 per share (C$3.65) and emphasized the project is fully funded for exploration through 2026.
Roth analysts also emphasized the significance of the high recoveries. “While it is said that ‘grade is king,’ without adequate recoveries, grade does not matter,” analysts wrote. “In this instance, the Lion Zone has both grade and initial high rates of recovery.”
Roth analysts added that the results indicate the potential to produce a high-quality concentrate “attractive to smelters” and that “high grades in broad zones and high rates of recovery appear to lay the foundation for an attractive starter mine.” Roth maintained a Buy rating with a C$3 per share target.
The Lion Zone, covering approximately 300 meters along strike and plunging roughly 750 meters at depth, remains open for expansion. Power Metallic has recently expanded its land package, secured drilling permits for newly acquired areas, and plans an aggressive 100,000-meter drill program in 2026 to test infill and deeper targets. Analysts see this combination of scale, high recoveries, and strong metal grades as key drivers for potential future development and a compelling investment case.
