Nickel" or the "Company") (TSX-V:PNPN) (OTC:PNPNF) is pleased to announce it has completed its review of the Company's assets and has formalized the following plan to optimize its non-core assets while maintaining its focus on the exploration and development of Nisk, the
TORONTO, ON / ACCESSWIRE / July 20, 2023 / Power Nickel Inc. ("Power
Nickel" or the "Company") (TSX-V:PNPN) (OTC:PNPNF) is pleased to
announce it has completed its review of the Company's assets and has
formalized the following plan to optimize its non-core assets while
maintaining its focus on the exploration and development of Nisk, the
Company's High Grade Nickel PGM Project near Nemaska, Quebec.
Step 1 - The Company will transfer the beneficial interest in its Golden Ivan
property to Consolidated Gold and Copper Inc. ("Consolidated") in exchange
for common shares of Consolidated. Consolidated, through various other
wholly-owned subsidiaries, also hold the Company's Chilean assets (other
than Copaquire described below). The Company will seek approval to spin out
Consolidated via a Plan of Arrangement and distribute Consolidated shares
to its shareholders, which will be more particularly described in an
information circular (the "Circular") that will be delivered to shareholders in
connection with voting on the Plan of Arrangement and other usual annual
general meeting matters. There is no immediate intention to list
Consolidated's shares on any stock exchange or quotation system. As a spin
out from a public company, even if Consolidated is not listed, Consolidated
will be obligated to file continuous disclosure under Canadian securities laws,
including annual audited financial statements and interim unaudited
financial statements and related management discussion and analysis.
The Company expects to hold the Annual and Special Meeting in October.
Power Nickel has retained RWE Growth Partners to provide a fairness opinion
and valuation as to the value of Consolidated and the fairness of the Plan of
Arrangement to shareholders. The Company plans to allocate 25% of the
Consolidated shares to Power Nickel's shareholders as more particularly set
out in the Circular. The expectation is that Power Nickel will hold 26,000,000
common shares of Consolidated prior to the proposed Plan of Arrangement.
For every 20 shares of Power Nickel that a shareholder holds, that
shareholder will receive 1 share of Consolidated resulting in the distribution of
approximately 6,500,000 common shares of Consolidated to its shareholders
and Power Nickel will retain approximately 19,500,000 Consolidated shares.
At completion of the Plan of Arrangement it is expected Consolidated Gold
and Copper Inc will be a private company. While the process is unfolding the
Company plans to continue to evaluate options, including the sale of all or
part of the assets, listing of Consolidated, and the vending of the assets into
another entity for cash or shares. Power Nickel's paid-up Capital base is
sufficient such that a spinout is expected to be conducted on a tax deferred
basis and should not create a taxable event for most shareholders.
"We believe splitting off the non-core assets into Consolidated will be
beneficial for Power Nickel shareholders. It will enable the new entity to
separately finance and pursue growth opportunities as more accurately
detailed in the section below, that may otherwise be overlooked while the
Company focuses on Nisk. This will take the burden off the Power Nickel
balance sheet and instead allow these assets to be separately valued by the
market." Commented Power Nickel CEO Terry Lynch.
Step 2 - The Company is formally placing its 3% Royalty on the Copaquire
Project owned by Teck Resources for sale. Teck has the right to buy the first
1% for $3 million USD and has the right of first refusal on a sale of the Royalty.
Power Nickel has decided that while the long-term potential for the Royalty is
excellent, the sale of the Royalty will reduce dilution at Nisk and that this is
the best move for shareholders. To compensate the interested parties looking
to acquire the Royalty from the potential of a Teck exercise of its first right of
refusal, Power Nickel will agree to pay the proposed Royalty buyer a breakup
fee of $300,000 CAD in the event of said exercise. For additional details on
Copaquire, please see the section titled Copaquire below.
"We have held onto the Copaquire Royalty for a very long time. It has a
substantial known 43-101 compliant mineral resource estimates, and the
super gene remains yet undiscovered. Commodity prices have risen sharply
since these estimations were made and will likely continue to rise. In this time
where developable global copper projects are rare, we are confident it will
find its way into production and confirm the value of our royalty,"
commented Power Nickel CEO Terry Lynch.
Detailed descriptions of the proposed spinout company Consolidated and
the Copaquire Royalty are contained in the sections below.
Consolidated Gold and Copper
Upon approval from shareholders by special resolution, the Company
proposes a Plan of Arrangement to spinout Consolidated Gold and Copper
Inc. as a separate company. It will have a different CEO and a Board
comprised of Power Nickel representatives and independent third parties. It
will be comprised of the assets listed below.
British Colombia - Golden Ivan Project
Location
Note 1 - CMX was former symbol of PNPN. References to nearby properties
are for information purposes only and there are no assurances that Golden
Ivan will receive similar results.
NI43-101 - https://powernickel.com/pdf/golden_ivan_technical_report.pdf
Please refer to the Company's news release of February 2, 2022 for additional
information about Golden Ivan.
Latest Update
POWER NICKEL DISCOVERS TWO NEW HIGH-GRADE GOLD ZONES
at it's GOLDEN TRIANGLE PROJECT, STEWART, BC, CANADA
SAMPLING RETURNS 16.2 G/T and 15.1 G/T GOLD IN OUTCROP
Power Nickel Inc. ("Power Nickel" or the "Company") (TSX-V:CMX)
(OTC:CMETF) is pleased to report assay results from its summer 2021 Golden
Ivan Property (the "Property") exploration. The highly successful 2021
prospecting and geologic mapping program has resulted in the discovery of
two new high grade gold zones yielding 16.2 grams-per-tonne (g/t) gold (Au)
and 15.1 g/t Au in outcrop.
The 2021 Golden Ivan Property campaign completed during July and August
2021, included the collection of 210 surface rock samples including 7 channel
samples, in addition to reconnaissance geologic mapping and whole rock
geochemical analysis throughout the Property. A total of 17 of the 210 rock
samples returned greater than 0.1 g/t Au, and up to 16.2 g/t Au from the newly
discovered Lone Goat Showing, and 15.1 g/t Au over 0.75 metres from a
channel sample at the newly discovered Molly B. East showing in addition to
significant silver and base metal values (Table 1).
Terry Lynch, CEO director of Power Nickel comments, "We are excited to
announce the results of our 2021 field program at Golden Ivan, which
resulted in the discovery of two new high-grade gold zones. Further defining
the mineralization controls, lateral, and vertical continuity of these emerging
precious metal trends will be the next steps as we continue to demonstrate
the significant potential of the Golden Ivan property and move toward
developing drill targets for testing during the 2022 season."
Table 1. 2021 Golden Ivan Project 2021 Prospecting - Significant Results
Sample ID Showing Material Au
(g/t)
Ag
(g/t)
Cu
(%)
Pb
(%)
P385752 Gold
Zones
Lone Goat
(New)
Talus 16.2 25 1.56 -
P385831 Outcrop - 47 0.18 -
P385732 Outcrop 3.41 14 - -
P385774 Outcrop 0.76 176 0.64 -
P385703 Float - 22 1.14 0.15
P385691 Float - 31 0.82 -
P385857 Molly B. East
(New)
Channel
(0.75 m)*
15.1 12 0.10 -
P385801 Outcrop 1.43 39 0.16 -
P385809 Ice valley
(New)
Outcrop 0.73 47 0.27 -
P385760 Outcrop 0.53 5 - -
P385840 Silver
Zones
Silverado
No.4 East
trend
(Historic)
Outcrop - 76 - -
P385841 Outcrop - 27 - 1.13
P385682 Float - 30 - 0.73
P385739 Outcrop - 19 1.82 -
P385693 Magge Sky
Annex
(Historic)
Outcrop - 47 0.38 -
*The approximate true width of the channel sample is 80-100 sample width
Mineralization and Alteration of New Discoveries
The Molly B. East high-grade gold showing is associated with subvertical
southeast tending quartz-pyrrhotite-chalcopyrite veins hosted within
andesitic volcanic rocks with fine grained sulphide halos.
The Lone Goat high-grade gold showing comprises an approximately 700 x
200 metre NE-SW trending subvertical zone of multi-stage quartz-epidote-
sericite-carbonate altered andesite that returned multiple anomalous (n=8
greater than 0.1 g/t Au) gold assays.
The newly discovered Lone Goat, Molly B. East gold showings and the
historical high-grade gold-silver Molly B trend to the south are coincident
with northeast and northwest trending airborne magnetic (low) lineaments
respectively (Figure 1).
General Geology
The results of reconnaissance geologic mapping indicate the Golden Ivan
Property is underlain by a layered sequence of andesitic volcanic and
volcaniclastic rocks attributed to the lower Jurassic Hazelton Group. The
volcanic package is cut by late andesite dykes and rhyolite bodies, while the
northeast area of the Property lies in faulted contact with interpreted Stuhini
Group metasediments.
Figure 1. Golden Ivan Project 2021 Surface Rock Assay Results
Golden Ivan Historical Data Compilation
Prior to initiating the 2021 exploration, Power Nickel commissioned a digital
historical data compilation with respect to the Golden Ivan Property. The
compilation comprised publicly available mineral assessment reports and
property files from as early as 1929 to date and as recently as 2020.
Documented exploration within the Golden Ivan Property includes extensive
prospecting, geochemical analysis of surface rock and chip/channel samples,
trenching, small-scale underground development, and geophysical surveys
(airborne magnetic, VLF-EM, multi frequency EM, and magnetic / radiometric
surveys).
A total of 124 rock and rock chip/channel samples were digitized, which
returned an average grade of 2.45 g/t Au and 79.4 g/t Ag, up to a maximum of
118 g/t Au and 2,400 g/t Ag. Of the 124 rock samples, a total of 17 returned
greater that 1 g/t Au and a total of 16 returned greater than 50 g/t Ag,
including seven samples returning both greater than 1 g/t Au and 50 g/t Ag.
Several small-scale historical workings occur within the Golden Ivan claim
group, comprising surface pits, trenches, and short adits. These include the
Gold Ore, Eagle & Big Bell, Magee Sky Annex, and Molly-B prospects near the
western claim boundary. Molly B prospect sampling returned an average
grade of 9.2 g/t Au for 11 samples, and up 45.7 g/t Au and 90.2 g/t Ag collected
intermittently over a 750 m NW trending zone. In addition, the area between
the Silverado No. 4 and Magee Sky Annex shows a northeast trend returned
assays including 6.2 g/t Au, 1,300 g/t Ag and 1.4 g/t Au, 2,400 g/t Ag. The
significant Silverado No. 4 workings, located to the south outside the
Property, returned values up to 60 g/t Au and 90 g/t Ag.
The historical compilation results demonstrate the potential to expand and
further delineate historical high-grade gold-silver mineralization with
continued exploration.
Methodology and QA/QC
The analytical work reported on herein was performed by ALS Global (ALS),
Vancouver Canada. ALS is an ISO-IEC 17025:2017 and ISO 9001:2015 accredited
geoanalytical laboratory and is independent of Power Nickel Inc. Rock
samples were subject to crushing at a minimum of 70% passing 2 mm,
followed by pulverizing of a 250-gram split to 85% passing 75 microns. Gold
determination was via standard atomic absorption spectroscopy (AAS) finish
30-gram fire-assay (FA) analysis, in addition to 48 element ICP-MS
geochemistry.
Power Nickel Inc. follows industry standard procedures for the work carried
out on the Golden Ivan Project, with a quality assurance/quality control
(QA/QC) program. For the rock channel samples, blank and standard samples
were inserted into the sample sequence sent to the laboratory for analysis.
With respect to prospecting rock grab samples the QP's have relied on the
internal quality assurance/quality control (QA/QC) measure of ALS which
includes the insertion of standard, blank and duplicate samples into the
sample stream to confirm the accuracy of the reported results. The QP
detected no significant QA/QC issues during review of the data, and is not
aware of any sampling, or other factors that could materially affect the
accuracy of the results.
Qualified Person
The scientific and technical information contained in this news release as it
relates to the Golden Ivan Project has been reviewed and approved by
Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant, and Alfonso
Rodriguez, P.Geo. (BC) Senior Project Geologist of APEX Geoscience Ltd. of
Edmonton, AB, both "Qualified Persons" as defined in National Instrument
43-101 - Standards of Disclosure for Mineral Projects. Mr. Raffle and Mr.
Rodriguez verified the data disclosed which includes a review of the analytical
and test data underlying the information and opinions contained therein.
Chilean Projects
The Chilean Projects have seen little exploration spending since the Fall of
2021. The evolving Chilean political climate made a delay in exploration
advisable. Now that the constitutional election was categorically defeated
and there is a new senate, it seems Chile is back in business. In addition to the
political change, there has been an important technological change.
One of the greatest challenges in discovering big new copper gold projects in
Chile is navigating the challenges of desert exploration. There exists in the
sand of the desert a mineralized limestone called Caliche. It complicates the
normal geophysical tool kit geologists would use to explore. This makes
desert exploration expensive and challenging. However, a new geophysical
tool, Ambient Noise Tomography, an advanced form of seismic exploration, is
achieving success in desert climates in Australia where Caliche is also a
problem. The new approach and technique is being commercialized by our
service provider Fleet Space Technologies. The link attached outlines the
approach in a brief video. https://fleetspace.com/mineral-exploration
We believe this approach could seriously improve the mine exploration
business in Chile and we are pleased to be the first company to use the
technology in Chile. We think it will be impactful in furthering the exploration
and development of our land packages which we describe in brief below.
Zulema (From current MD&A in Annual Report 2022)
In 2013, the Company acquired 23 exploration concessions totaling
approximately 2,105 hectares surrounding its five then existing Zulema
mining concessions in Chile's Third Region. In 2014, the Company acquired
nine additional mining concessions totaling 724 hectares from a third party.
In March 2015, the Company completed the acquisition from another third
party of three additional mining concessions totaling 600 hectares. The
Zulema property now consists of 4,300 hectares (10,626 acres). All concessions
are held 100% by IPBX and Minera Palo Negro Ltda, with no underlying third-
party royalty or net profits interest. The project is located 30 kilometres from
the giant Cu Au Candelaria mine of Lundin Mining Corporation and in a very
similar geological environment.
During the year ended December 31, 2017, the Company commenced drilling
its Zulema project. The exploratory drill program began testing two
geologically distinct targets: a 1+ square km. area of intense garnet scapolite
skarn breccia (Skarn Target) and a large Induced Polarization chargeability
anomaly on its eastern flank. (IP Target). The initial results released on
February 27, 2017, suggested to Chilean that it had found in our assessment,
IOCG style mineralization.
Drill holes 1, 6 and 7 assisted in defining the boundaries of the eastern skarn
and related sulphide mineralization. Drill hole 4, targeting the IP target, was
terminated before reaching bedrock. The target remains open. Hole 3 had a
six-meter section from 285.32 - 291.32 meters which contained 0.66% Cu,