Power Nickel Reviews Assays Result on High Grade Nisk Nickel Project

0:08 Hello, everyone. I'm welcome to Power Nichols live investment summit today hosted by 6. I'm pleased to introduce our speaker today, Power Nichols CEO, President and Director, Terry Lynch. Terry's going to walk us through a company presentation and after we'll be taking questions live. Remember you can submit your questions using the Q&A panel found on the right hand side of your screen at any point during today's presentation. And as always this event is being recorded and will be available to watch on six.com in the coming days. Without further ado, Terry, I'm going to hand things over to you and you can get us started. Ken, thanks again. Always great to be here

0:38 at 6 and to reconnect with our audience of shareholders and interested potential investors. We had a pretty exciting week and it's going to be the start of an exciting year. It's interesting, I've got that picture that you see and it's not a work of art, it's not Michelangelo, but it is mining and It's pretty cool. I'm going to take you through it. This is the start of the deck. What you see is that core box that's on the cover there. The results from this round of drilling And that black rock you see in the bottom there, that's the period rock that contains the Nickel grade. So that's what it looks like just for people that wonder, hey, I wonder what this stuff looks like. Well, that's what it looks like. And that's when we were saying to people that we were expecting to get good results because of our visual recognition that we were hitting the target rock that we're looking for, it was because of this.

1:45 So that's when we said to people, we thought we were gonna get good results. And of course we published the first good result and the second one's coming. So we'll go into that in more detail, but that's why. So that's why we're able to visually make that call and update people. The other, a couple of interesting things to sort of reflect on in this photo. It's a bit of a collage of 3 pictures. The one on the left is obviously the drill rig drilling this very sort of column that we see in the in the core box. And that's what the that's what northern Quebec looks like. You know so it's sort of you know a terrain like that. So that's it gives you a sense of how mining is in northern Quebec. That's what it looks like. And then on the right-hand side, you can see there are ATCO trailers. And in the foreground of that picture, you can actually see There's a giant industrial complex there. That's Hydro Quebec, you know, with their, you know, major, you know, power substation.

2:39 So, you know, it shows you that we're in a civilized spot to actually build the mine, to me. So There's a lot of information in that picture and a lot of it's really positive for us as Power Nickel. So anyway, it's not a work of art but there's a lot of beauty in there, at least to this miners part. So let's keep going. Yeah, the advancing forward. Yeah, here we go. Standard disclaimer, obviously, everyone's got to do their own due diligence. We're telling you the truth as best we know it, but it's always good to check and verify, you know, these statements and that sort of thing. So I'm gonna run you through, we've done a recent presentation of this, so I won't spend a ton of time on it. I'll be fairly top level on this because I really wanna talk more about the drilling than everything, but we've made a couple changes. I mean, the summary is commodity bull market is here.

3:37 Obviously, I don't know, nickel's ripping again today. I think it's, I don't know, last time I looked was 12.50 or something. So when we bought the project, nickel was 5 bucks. So it's like, you know, no, did I know that that was going to happen? I was bullish on nickel, but I didn't, I wasn't calling $12 nickel or I'd have bought nickel features and be super wealthy right now, but I did not do that. So, so, but we, But we were bullish and we felt that the commodities we were working on, nickel, copper, cobalt, palladium group, would have a good run and they're going to have a good run. I'm sure they'll calm down a little bit here. But generally speaking, the reason why these commodities are in such a rip is that the supply and demand curve are unbalanced.

4:26 So we have more demand than we have supply and that just tends to push price up. So that's gonna be really great for us for lots of reasons and it's going to be sustainable. The discount to comparables, I mean that's, we're going to have another show on that because I've actually done a ton of work. We've pulled together basically all the other nickel resource companies that are out there in the marketplace. And we're looking at, you know, there's many ways to look at these projects. And obviously, what you're trying to do is come with some sort of common understanding of what it takes to get the nickel out of the ground and what's the value of the nickel in the ground, that sort of thing. So one thing I can tell you from my analysis, I would say Power Nickel is the cheapest nickel company in the world today with resources in the ground and by a lot. So that's not going to stay that way because now we're starting to push our messaging out.

5:26 We're actually getting the evidentiary proof with the assays and soon with an upgrade of 43 and a 1 that people will actually see that this is the case. And then of course, rational investors will step up and start to, you know, pick up, you know, fast swacks of the stock and the stock will go north. In my view, that's my personal belief. You know, so those are those are the things that are really sort of key. Obviously, the rebranding is Power Nickel, that's well underway. We'll talk a bit about the bonus spin out, a little bit of an update on that. And now we're not talking about pending results. We're actually gonna be able to talk about real results and soon to be a 43-101. That'll probably come in early Q2.

6:13 You know, this is this chart that I use to sort of help people understand, you know, how impactful a commodity bull market can be to stocks in their sector. So this is just the TSXV over the S&P. And when that, you know, in a commodity bull market, like if you look back at 2006, 2008, it gets up into the 2 and A03 range. Today, it's about 0.25. So there's gonna be an order of magnitude shift there, like a 10 dagger across the board. So that's why people wanna be investing in the commodity sector today and that's a really bullish one. The many of you know that I started State Canadian Mining with a mission to sort of make it much more difficult to be a predatory short seller. And I was able to get great people like Eric Sprott and Sean Ruse and Keith Neumeyer and many others in the industry to help support me in this.

7:10 And we have made some progress on that. We were hoping to get legislation in this spring in Ontario to change some rules that could really be super helpful for us. With the coming election that's been postponed, pushed off to the fall. So we'll just see who gets elected and how that sort of sits going forward. But we remain optimistic that we'll continue to advance that and ultimately make a difference for ordinary investors.

7:39 The NISQ resource, this is the one that will get updated, of course. So when we acquired it, it basically was, you know, effectively a little over 3 million tons of, in today's math, because it changes with the pricing of all the commodities in move, but generally speaking about 1.7% Nickel EQ. That's the math today. So something in that order of magnitude. So if you look at the price curve of all the commodities, nickel, copper, cobalt, palladium, platinum, and you brought them down into a nickel equivalency, that's sort of what you get. So that's a very high grade deposit by anybody's stretch of imagination. It's been a fairly productive ore body historically compared to other ore bodies. That's what this slide speaks to.

8:28 And we're finding that That's being maintained now as we go forward in the drilling program. So that's a bullish thing for us. We won't spend a ton of time on this, but it just shows that we're relatively impactful with our drilling. We can look for that in the future. The nickel story, I mean, obviously right now the nickel story is about supply being constrained by the conflict in Russia and Ukraine and we can pray for a speedy resolution for those poor people in both countries, God bless. But unfortunately, that has had a negative impact on the nickel market in terms of supply and it's causing the price to surge. I mean, the price surge is going to come in any event because of the supply and demand imbalance that was structurally coming.

9:22 This just accelerated it. So, you know, obviously, I think the Nickel price and the outlook for nickel for the future looks awesome. And the reason why is that generally demand wise, you've got 2 primary drivers for nickel demand. One is urbanization basically, because stainless steel is the number 1 consumer of nickel. And so when people have more pots and pans and fridges and stoves across the world in China and Asia, India, Africa, South America, as people get more urbanized, they use more of these things. And of course, that drives the nickel demand. The second big driver on nickel is of course the nickel batteries, the composition. And you can see that nickel is just increasing more and more because It's the cheapest product. It started off being a third of 0.333, 0.333, 0.333.

10:19 And ultimately they're thinking they're gonna get it up to 80% nickel. In automotive batteries, they're thinking it's basically, this is the slide, it's gonna go from 39% to 58. So it's really amazing. And the other point I would make is that not all nickels create an equal. So there's really 2 types of nickel, class 1 and class 2. Class 1 is anything sort of, I guess, 99.8% purity and above. And Class 2 is obviously south of that. So class 2 can be used in making stainless. You can, you know, with spending a lot of money and you can take class 2 and make a class 1 but it's not economic. So class, in terms of the overall nickel, if you think of about, I think it's 2 million tons a year of nickel being made or produced, about half of that is class 1, about 0.5 is class 2. So the class 1 is really the stuff that could be used in the batteries.

11:12 Then there's also a lot of recycled nickel. Well, recycled nickel is also impure, it can't be used for batteries. So the bottom line is the nickel sulfate discoveries and deposits are really the prime source for the battery market. And so that's what makes nickel sulfate discoveries so attractive to make and to finance. Now we're going to start to get into more detail on where we're at. Obviously, we're in James Bay, just south of James Bay. I think I showed you on the cover story, you know, how modern the area is. I mean, we're just off a major highway close to the Hydro-Quebec substation literally across the road. So that's good. Other mines are being developed in the area. 1 just down the road, the Damascus mine, probably, I don't know, maybe 10 clicks down the road.

12:04 So supply chains are in place. We've got a very good working relationship with the Cree, who are our native aboriginal group in the area. They're very pro-development. Our partner, Critical Elements, has got a long standing relationship with them and we're piggybacking on that. Critical Elements is building their mine just up here, that's about 40 clicks away, and Galaxy's just over here. So it's become like lithium central in terms of the development, And obviously the nickel is sort of a nice new component to add into this whole battery theme of what's happening up there in northern Quebec. So when we got the project, this was what we were looking at data-wise that got us excited. And it basically showed that the deposit was open at both a depth and a long strike. So that's exciting. This is sort of a big strike length. There's probably about 13 kilometers of strike there in total. And we've explored a very small portion of it. That little black dot there is really the deposit that we're talking about right now.

13:06 And we had a really good luck, you know, hiring 3DGEO to do our deposit modeling, and they're actually gonna be producing our 43-101. They're a very smart group and have done extensive work in this area. It's really important to work with professionals that have worked in the area because, you know, while a professional could work anywhere, it's obviously having domain expertise so close by is really helpful. This is the first 3D model that was ever produced on the project, and that guided our drilling program, and it's led to our success. So we start to get into the heart of what made us excited. So you can see these very attractive, this section area here is sort of more the high grade area of the deposit, where it's like over 2%, I would say, at Nickel EQ.

14:01 And over here is sort of, you know, not still, this is sort of more like 1.2 to 1.4, 1.5% Nickel EQ. So the first results that we had actually came from this area here, sort of this lower grade area, but lower grade relative. I mean, the intercept that we put out, the most prominent one that we sort of talked about in the headline, which was basically, Yeah, where is it here?

14:33 Yeah, 19.9 meters of 0.7% nickel, 0.61 copper, 0.04 cobalt, 0.81 grams of palladium, and 0.39 grams of platinum. So That's about 1.35% Nickel EQ or so. That's a very healthy intercept. What was cool about that is it extended the zone about 150m from the known previous drill hole. That extends the mineralization of known area and helps us connect back to the other resource. So from a mine modeling perspective, this is important. The geos and the engineers were happy to see that result. So we were very encouraged by that And we're obviously waiting with bated breath for the results of these holes. And like we said, these holes have hit the black period at rock that we saw sort of saw on the front page. And we're expecting those holes to be out.

15:33 It could be any day now. I mean, we've been waiting on them for about 2 weeks. I've been waiting longer than that, but I mean, where the system says it's in process, and usually that means you get the essays pretty quickly thereafter. So we're not holding that up. That'll come when they come and we'll get it out just as quick as we can. What's next?

15:53 So basically what's next is that we're going to get this 43-101 updated. Well, as soon as we get the second result out, What's next is first get the second result out. And that'll be from these holes in here that we talked about just back there. So these 4 holes, 1, 2, 3, 4, so those are all pending. And we'll get those out and Then we'll immediately start to plan the next phase of drilling, which we would look to do probably starting in June. That'll be a very substantial program, we think, where we'll massively expand our drilling. This area in here that I'm circling, that's what we would call NISK Main. Over here is the start of NISQ West.

16:48 And so we'll start to explore over here to see, typically this is what we would call 1 pod. And we can see getting to 8 to 10 million tons on this one pod. Using this one layer, we don't know if there's anything deeper underneath here. We're going to definitely do some deeper holes to see. Sometimes you get these things are stacked, so you have 1 river of nickel, and then underneath it, there might be another. So we haven't tested that yet. That's something we'll test in the future. And every now and again, if the gods are really kind, these pods exist as halos over VMS. So that would be, you know, imagine this being over Voisey's Bay underneath here or something like that. That's, I mean, obviously fantasy, but it does happen. And the neat part about one of the reasons why we bought this project was we love the optionality that it had is that we thought it was 1 pod, we thought there are signs there are other pods nearby.

17:43 Historically, globally, these nickel sulfate deposits typically come in pods of multiple pods. So it would not be unusual, it'd be in fact quite common for it to be like that and as I said you know there possibly could be stacked systems or the peak over top of something like that a big BVMS so I mean it was neat that we could have that optionality. And so there's a lot to explore here. So our mission really, over the next little while, is to, you know, really start to make the case that this is a major discovery, you know, and that there is major potential to expand this and make it into a mine in the near term. From an action plan perspective, we'll publish the final set sometime in March.

18:30 We'll update our 3D model and look to optimize our phase 2 exploration program. We'll release the new 43-101, the updated 43-1 in early Q2. And then We'll look to have a phase 2 drill program in late Q2. About half of that will be concentrated on the NISP main and just ramping up the tonnage there. And then the other chunk will be spent on sort of testing these other pods and what might be available there in terms of NISP West and are what we call Wildcat targets East and West. And we'll be testing those in this next program as well. We would probably look to get that completed inside of Q3 and results come in late Q3.

19:22 And then that again would iterate the exploration models again and look to get a third drill program in the fall. So this is going to be all hands on deck. We're really going to go at this thing. So that'll be exciting. Obviously, we'll need capital to do that. We do have a lot of warrants that are outstanding, about $4 million worth. Some of them are in the money now, and they're up in September and they're callable. So we're expecting to see, We're wanting to get the results out and the 43-101 out and we'll expect to see a major increase in understanding of the potential of NISQ that should lead to a major increase in the valuation of the company because it's just so massively undervalued relative to its peers. And obviously, Nickel is having its day now.

20:26 That would help to fund this drilling budget. And as we go forward, it will be timely in terms of how we hit the capital markets. One of the other points we talked about on the outset was spinning off our copper gold properties. So We're just preparing our audits now. We'll get that done and then it'll be much more economic to roll this out. We'll look to have a shareholder meeting in Q2 to improve this plan where we'll spin out our gold and copper assets in Chile and in BC. And basically, we would keep 80% inside Power Nickel and 20% would go to our existing shareholders.

21:17 It will have a small float probably around, I would think about 18 million shares at the time. So that means that when only 20% are in the market, 3.6 million, and half of those are closely held by basically 4 groups, my family, the Stern family, who brought me into Power Nickel many years ago, Critical Elements, and Hugh Madden, who we acquired Gold at Iverfront. So those 4 groups control almost half the company and obviously are in for the long term of what we see here. So it's fair to say that that new spin co will be fairly valued. And that's why we did it this way so that we can actually have a decent, before we bought NISQ, the stock was trading around 30 cents. So how we got, you know, here at 17 is it's a, it's a head spinner given all we've done, but you know, junior mining sometimes goes through those periods where you have unbelievable value in staring your right in the eye and people just don't see it. But eventually they wake up 1 moment and then all of a sudden the things surge. So that's what's gonna happen on this thing, I predict.

22:27 And it's gonna happen as we start to educate people as to how crazy undervalued this thing is by showing real evidentiary proof, by showing comparables of nickel in the ground versus other companies with nickel in the ground. And we're gonna start to make those comparables available shortly and you'll see yourselves why it's such a tremendous deal. So The assets that would go into consolidation Gold and Copper are our Golden Ivan project and our Chile projects. In Golden Ivan, we're literally right in the heart of the Golden Triangle, literally overlooking the town of Stewart. And basically this yellow section here is us. The red is Sky Resources, the green is StrikePoint resources.

23:18 And as we go here, you can see this, we released a press release about 2, maybe a month ago, where we showed our summer work program and it was quite robust. We weren't able to drill. We expect to be drilling this summer, but last summer we couldn't drill. But we did do some extensive sampling and we found 2 new goal zones, both giving back goal samples of over 15 grams a ton. So that's like 0.5 ounce material. That's crazy, crazy numbers. And it's sort of indicative of what could be there. This thing has never been drilled. So right here where my cursor is, that's Silverado Strike Points project and their best intercepts are right here. So operate literally on our border. So we're pretty bullish about what we could see up here and that's why we're excited to get it out in its own entity where it can have its own sort of day in the sunshine.

24:17 What would that thing look like valuation-wise?

24:19 Hard to say. We think it's something in this 25 to $40 million range. That's probably where we should be, maybe a little less to start, but possibly more to finish. It's pretty neat bonus when you think that our overall market cap when I did this yesterday was 14. So potentially that spin-off is worth more than Power Nickel is today. So that's a tremendous asset. I mean, what's interesting is that, you know, Ascot is building a mine just If you look back here, 1 slide, this is the Ascot here. You can see how close we are. They're going to have a mine built. They're going to need resources. If we find some here, if we don't have enough to build our own mine, certainly there wouldn't be any problem to sell because they will want these resources. They definitely want to produce Gold in the ground.

25:17 Chile, obviously historically our name was Chilean Metals, so we've been a big believer in Chile. We've got 3 really great projects down there in Suleima, Palo Negro and TDO. They're basically drill ready. The only reason why we haven't advanced any exploration down there at the moment is that we've obviously had scarce capital and we had lower risk, better return options available to us in NISK and in Goldman Ivan. There's a bit of political risk in Chile right now. I think it's diminishing, but still not out. You know, they're having their constitutional debates and an actual vote nationwide in August to approve the new constitution, which hasn't been finalized yet. So we're just waiting for that to be finalized. So we see the new rules of engagement before we go back into Chile with an increased expiration budget. We're doing a lot of intellectual work there right now. That's not expensive, but still is important. And so we're ready to go when it when it changes.

26:22 And honestly we just you know with the money we had we thought we were better off just to invest in Canada for the moment and keep our Chilean powder dry and hope that there'll be a better day to get back there. And we hope that that's this fall. The other, of course, one of the assets that is in the company now and will stay with Power Nickel is this royalty. We sold a project to Tech called KobaCarrie and it had basically a couple of hundred million tons of what is board grade copper right now. We had thought it would be being produced, honestly, in QB1, but when Tech changed its plans and they basically mothballed QB1 so they could build the QB2 more efficiently. That obviously hurt us, delayed things a lot.

27:08 There'll be eventually a QB3 and probably this resource will be the cornerstone of it. And so this royalty, which is 3% royalty, they can buy 1% back for 3 million. Pretty significant asset to have. People have tried to steal it from us, but we've turned them down. It's one of those things that at the right time, as this project gets more explored and starts to look like more of a mine than that valuation of that Royalty will go up dramatically and we might make a deal on it. But for now, it's a nice hidden asset that will stay with Power Nickel. The people behind Power Nickel, obviously you know about me. Greg is a former MD at Haywood, a very experienced junior mining executive.

27:55 Now he's running his own silver mine in Mexico. Peter Kent is a retired lawyer. It's always great to have sage advice from a lawyer on the board. And he's been very supportive and Les Mallet is a very prominent and successful businessman in Nova Scotia. So, and Jimena is our ace in the Chile, who is running things down there. It's been with us for a number of years, very, very sharp young lady. Capital structure, basically about 84 million shares outstanding. You can see this is the 20 million warrants I'm talking about. Again, most of these are insiders. So these will be exercised and won't hit the market. So not expecting to fight through a lot of turbulence there. I think that'll just add to the cash and we'll move on and that'll be attractive.

28:46 It's interesting, you know, here's our 52-week high and low. So we're, we're maybe, I don't know, I checked today, but around 17 cents. Our high is 55. I see that coming back again real soon. So it's, remember we financed this at 25 cents and 40 cents. I mean, I took a big chunk of it. My family did as well, both actually. And I thought it was a great deal of time and I still do. But I mean, you're able to get in there right now under the finance prices and we're actually delivering on the results and it's great news. So it's a checkered flag time in terms of the stock in my view. So summarizing why we think it's a great time to invest. Well, the general results indicate a major Nickel Sulfate discovery. Additional results are pending.

29:34 We're going to publish this new 43-101 in an early Q2. The exploration modeling suggests there's a great potential for expansion. The sector couldn't be hotter. Nickel, Copper, Cobalt, Palladium are just rocking and NISK has them all. The spinoff offers, we think, excellent bonus potential and it's a great way to get it to our shareholders. The leadership team is well-connected. That's obviously how we're able to get these deals and we'll continue to be deal savvy. Nickel's on fire and the futures curve looks very bullish.

30:12 I'm getting contacted from not just individual investors or retail investors or even hedge fund investors, we're getting industry people contacting us now, like majors and battery developers and In fact, electronics companies that are saying, hey, we've heard about your nickel deposit. Are you potentially looking at this for a strategic partner? So these types of conversations are gonna happen for sure. And that's what's gonna help us get a good financing, I believe, as we go forward. Investment-wise, obviously, as an investor, you obviously wanna buy when price is low and when you think it's about to change. And I think we can make a pretty good argument that that's the case here. And I think we're going to make a very convincing argument, you know, comparing us against our peers. And again, this is not to to slag our peers, who we have nothing but respect for. Every deposit is different. But it's just to show relative comparability. And I think there's a, there's a lot of projects that are going to be built in this sector over this cycle.

31:16 And then finally, you know, it's a, you know, we're fortunate being in Quebec and BC because the Superfolk through financing does make a big positive impact. Like in the last round, we were able to get a 60% premium to market. So that's the type of thing that can really reduce the amount of future dilution. And obviously that's important to us as shareholders. So much Terry for the great presentation. We do have a number of questions before we dive into them though. I'd like to remind everyone in the audience that if you do think of question, you can ask them in the Q&A tab found on the right hand side of your screen. But Terry, to begin with, question from Sean, why can't recycled nickel be used for batteries? It's not that it can't be used, it's just that it's expensive because it's not pure. What happens is the impurities that are in recycled nickel have to be taken out for it to be used in the battery complex. So that tends to be super expensive to do that. And so battery manufacturers don't like to do that.

32:14 It's not built into their process. Okay, fair enough. David says that nickel occurrences usually happen in clusters. What percentage of the land package has had an aerial survey and are there plans to survey the remainder? Yeah, We've had an aerial survey over about 50% of it. And we did that last, within the last year. And we definitely do plan to do the rest of it. And We're currently exploring 1% of it. So there's a lot of possible, as he said, typically when you get 1 bundle, you get others. And that's what we've got. We've identified 3 others that we're excited to go after, and there's probably more, but that's certainly on the horizon right now.

33:05 Wonderful. You've actually just partially answered this next question, but maybe if you want, care to elaborate or fill in any gaps that may have been missed, but David had a follow up question. The 3D geological model currently being used to generate targets for the exploration project. What percentage of your land package does it cover? What percentage of your land package has no exploration done to it? I think you just mentioned something like 1%. Yeah. Yeah. So the 3D modeling section would be within this 1% area. And what's interesting,

33:41 we're going to do something innovative here at Power Nickel. We're gonna post our Excel spreadsheet of our holes and assay results on our website so that amateur modelers can actually have a go this and model things themselves. It was interesting, we've come across endless communities online like in Twitter where these guys are accomplished investors, probably came from the sector, And they'll do a deep due diligence dive on companies like Power Nickel, where they'll actually, if they've got the data, they'll actually construct their own models and then they'll convince themselves as to the merits of investment.

34:32 And then they'll talk about it, you know, and they'll sort of speak to their book. So we're going to this. I didn't even know this thing existed out there. But I mean, we've got nothing. We're happy to be transparent with this information and we think that could be, could lead to more stickiness for our shareholders where we're gonna get investors that are quite knowledgeable about the deposit and if they believe in it, then they'll speak to it and That will be encouraging. So we're going to get that up, I would think, in the next week to 10 days. And in addition to, obviously, continuing to work the model ourselves, other people will be able to, if they've got the ability and desire, will be able to use the data to construct our own models and see what their thoughts are.

35:21 Okay, great. How much drilling is going to be required to define an asset large enough to attract the attention of majors? And how long do you think that's going to take? Another question from David in the audience. So, you know what, I think after this update, we're going to get close to, I'm guessing we're going to get close to 4Mt or so tonnes. Why do I guess that? We drilled about 13,000m to get to the 3Mt and we drilled about 20% of that this round. So maybe we're at 3.1, so maybe we're up 6,700,000. So it's towards 4 million. That's sort of that estimate that we, you know, just internal rule of thumb. So, so if you, at 4 million, you know, we're already talking to majors, because people can see from the modeling that there's, you know, probably in this one cluster, this main there's 8 to 10, potentially fairly, you know, visible out there.

36:23 And, you know, obviously 10, 10 million, 8 to 10 million tons of 1.5 to 2% nickel is gonna become a mine in this market. You can see that Talon Metals has a PEA of 10Mt and I think it's about 2.1% Nickel EQ. So a little bit better than us, we're about 1.7. So maybe 20% better. And that deposit today is worth about 800,850,900 million because they only own 60% of it. So if you have your talents metals market caps around 550 600 million so divided by 0.6 to get to what that deposit is worth so you're in that range right so it's pretty significant so That's the upside for us.

37:17 And we probably, to get to 10 million tons, we probably have to drill, we think another, probably another 25,000 meters, something like that. So in terms of timelines, we would think that the next drill program is probably 5,000 to 7,000 meters this summer, and then something like that this fall. So it probably takes us a year of drilling to get to 10,000 tons. Eric in the audience wants to know who's the QP of the NISQ project? That would be Ken Williamson of 3DGO.

38:04 Okay. And here's a follow-up question regarding, does a major Hydro-Quebec power line pass over the deposit at all? Are there any constraints in regards to this? No, no, no. We're right beside them, but we're fine operationally. There's nothing to, we're not impeded by any lines or anything like that. So no, it's really fortunate because from an ESG perspective, obviously, the ESG movement is driving a lot these days in terms of the move to electric cars and away from fossil fuels. It's important that mines be built in the most environmentally friendly way.

38:58 And obviously by being able to be powered by hydro, Quebec basically, by water power, it's a tremendous benefit. And it's like literally across the road from us. So I would think we're gonna enjoy great hydro rates and great access to that to build probably the greenest nickel mine in history. Sounds good. Sean, the audience is wondering if you're planning on exhibiting at any in-person conferences this year. We're going to Mines and Money in London in May. I forget the date on that. It's early May. And we're doing a lot of now outreach on IR to get the message out. So you're gonna start to see us out there, you know, presenting.

39:50 PDAC got moved around. So we may now go and present at PDAC as it was moved to June. I think that makes sense for a lot of reasons. So yeah, we're going to be definitely getting our word out at all the available battery metal conferences for sure. Great. Dibony Audience points out that Power Nickel has a 3% royalty on the Copacquoir copper moly deposit held by Tech Resources in Chile. When are they expected to begin commercial production? So there's nothing officially announced by Tech in respect to that. We know from conversations that they're basically, you know, I mean, they like everyone else went through a survivability phase.

40:38 And now of course, they're making money hand over fist. So that means that, you know, last year they sort of repaired the balance sheet. This year, my understanding is their exploration programs are ramping up. I would expect that they're going to start to ramp up exploration in Chile, probably waiting as we are to see what the rules of engagement are with the constitution. I would think after that happens, they'll they'll reassess their how they go about developing their Chilean assets. And that's when we'll get some more information as to when that could happen. But I mean, it's it's not going to be, you know, realistically, it's not going to be in the next 5 years. That's not going to become a mine. It takes a long time to become a mine. But what can happen is they could start advancing, you know, the exploration so that you can see that, hey, they're definitely going to have the resources to build a mine. I mean, they do that. They have it now, but we didn't even discover the super gene. You know, so I think that thing is going to get much more clear over the next 12 months.

41:47 And then you're going to start to see a timeline of when a mine could come into being. And then, I mean, the neat thing about this is, I mean, this is copper in the ground. So this, you know, whatever this copper price is going to be, we're going to have a royalty on it. So it's going to be pretty valuable at some point. It just probably doesn't really come into clarity for about a year, is my guess. Fair enough. David wants to know when consolidation gold and copper are going to be spun out to shareholders before the end of the year? Yes, we would think in Q3. So I would say that the timeline should be to approve it in Q2 at a special shareholder meeting.

42:33 And then the plan of arrangement takes about 45 days from that. So that would probably be in Q3. And then we would think, you know, we will continue to advance, or, you know, we would expect to try and get in to drill the golden Ivan in Q3. And so the results would come into the new company in the fall. So it could be bang, bang. Absolutely. David wants to know, is the expectation to develop the NISQ asset or just to find a large enough high grade asset that a major company is going to develop it? Yeah, so what we want to do as explorationists is basically advance the project as far as we can by adding resources and de-risking.

43:20 Because that means you'll get the most when you sell it. What I would see us doing is, obviously, as quickly as we can get a PEA done. Once we get to a certain resource number, probably in the 8-10t range to show the economics of this thing, which we think will be robust. Just to give you a rule of thumb, what would it cost to develop a project like this? I think it's important for people to know. Talamels has got a great project and their ore body is a little bit deeper than ours. They're probably 300m to 500m. They're projecting it would cost them about $210M or so to initial start for the mine, another 40 million for sustaining mine life. So call it 250 million to build that thing and sustain it.

44:11 So that's probably, my guess is we would build something in that order of magnitude. And that would be, you know, that's a very doable number when you think about the IRRs and these things are probably, you know, telemedicine is plus 40 percent. And that was at 8 dollar nickel. So I can't imagine what it would be now. So it's gonna be fairly attractive to develop. The bigger, high grade, Canada nickel giga metals, deposits which are hundreds of millions of tons of low-grade material, 0.2 and so forth.

44:58 You know, obviously interesting deposits, but, you know, and I think these things will get built, but they're 1 billion, billion and 0.5 to build, you know, they're a much bigger number and the payback's going to be much longer, like, so that the IRRs won't be as high, but, you know, obviously still, you know, still have a great investment return over the course, and these things will produce for literally forever, 30, 40, 50, 70 years. So, but they'll take some interesting financing partnerships to bring those babies into production, right? I mean, you have to have industry and government and corporations come together in some way to finance them because obviously the challenge is, you know, Nickel is in short supply and they need a lot more of it, and especially of this type of nickel.

45:51 So that's interesting. I mean, for us, we've got the high-grade nickel sulfate, so that's really beneficial. That's why this project will get hot. That's why we're getting calls from majors and why we're getting calls from battery guys. This is just early days. We haven't like we're standing now, which you've noticed over the last month or so, we're starting to pound the table and get the news out. We're going to continue to do that over the next while because people should know about Power Nickel and its NISK deposit, because it's the real. Awesome, okay. David wants to know, has any metallurgy work been done? Yeah, historically there has been metallurgy work done, Monarch had done and I think they were getting in the sort of in the 70% recoverables, which is acceptable, but we think it can be improved on. So that's something that we'll have to do in the future for sure.

46:50 Again if you look at the Talon deposit, it went through quite a cycle of improving its metallurgy, you know, as a process. And so they're getting now, I think, to 85% and stuff like that. So I think the science has come a long way on metallurgy, on these deposits, but there was some early work done. And so we don't see that as a, you know, an issue. Obviously, it's something that needs to be executed on and probably something we'll start to look at doing in this next round. But yeah, there has been early work done, but not a ton and we certainly need to do more. Okay. David is also wondering when the most current corporate presentation is going to be posted to your website. He's especially excited to look at the drill results spreadsheet.

47:42 You know what? I would say today. So I literally finished it last night and I need to send it to our web guy to upload it. So I'll do that when I get off the call. Absolutely. And as a note, today's presentation is also downloadable in the handouts tab on the right hand side of your screen. But Pierre Kent's wondering, what's the permitting environment like in Quebec? It's like all governments, there's a process. I mean, obviously Quebec is ranked the 6th best jurisdiction in all the world to do mining business. So it's very good. You know it does take time. But luckily you know with our partner Critical Elements and and with the team that they brought to the table we understand the process very well and we were able to manage it this time and obviously we'll do an even better job next time. So we're not worried about the permitting process.

48:42 We think we'll be able to navigate that and It's just an ordinary course of business. Great. So what are the major risk factors for PowerNickel? I missed that last question and came across as garbled, so maybe you can repeat it. Sorry, no worries. Dennis is wondering, what are the major risk factors for PowerNickel? Still didn't get it. Maybe I'm just... No worries. Am I coming across clearly to you now? No, can't hear you. Everything else was good up until that. Of course, apologies to everyone in the audience if there are any audio issues that you're currently experiencing. Give us a moment and we'll get this last question coordinated over to Terry as soon as possible.

49:33 Yeah, so maybe you could you could type the question in the public chat there. And then I could I could read it. What are the major risk factors for Power Nickel? Okay, cool. I'm not sure why. I see Eric is able to hear him and I can't. I don't know. Weird. The major risk factors for Power Nickel, well, the number 1 risk factor for any junior mining company is that you don't have the capital you need to execute your game plan or that you, you know, delete the, you know, you know, too much along the way through to getting there. So that's, That's always the one that we're most concerned with. And that's why we're now spending money to communicate our opportunity now to the investment world. Now that we were waiting to have the facts so that the drawing results start to confirm the facts, The next ones will be more important. And then finally, the update of 43-101 will really be for many people, that will be the day that they'll really start to trust that this is actually a serious Nickel deposit. I mean, We see it as that now. I think sophisticated mining investors could see that now. But nonetheless, that will be a milestone event.

50:55 We want to get that out. That will help to de-risk it. Obviously, we need to advance forward to do that. The metallurgical risk is something to be considered. Again, because there's been some work in the historic that was in the 70% range, we think that that's acceptable and you could live with that. Obviously, we'd like to better that and we think we'll advance that forward, but that would be a factor that you'd certainly want to consider. Because the Cree is already very pro-mine development. I don't consider any sort of community risk in terms of, you know, sometimes mining projects can have adverse relations with their local communities and as a result that could be a major problem. I don't see that as a problem here, but that's a problem for some mining companies in other spots.

51:55 We don't see it as a problem here. I think those are sort of the ones that are top of mind for me that I'm trying to sort of manage us away from. And we're trying to sort of keep lean and keep focused. And we think we've got a really good team on the ground at NISC and we're happy with how that's functioning. So I think as long as we get the capital, we'll be able to get through to the next stage where we'll get a PEA done and things will really start to take shape at that point in terms of market cap and that sort of thing.

52:48 Wonderful. I'm just going to confirm that you can, that we maybe resolve this audio issue. Yeah, I can hear you clearly now. Wonderful. So why are these results so important for ParaNickel as we begin to wrap up for the day. Yeah, they're important because they're actual proof, right? You know, I mean, it's one thing to have talking heads that are running these mining companies tell you how wonderful their deal is and why you should give us your hard-earned money. And it's another thing to have actual proof that in fact, this wonderful deal is actually materializing. It's becoming science. It's becoming fact. So the results start to prove that this is becoming fact. And then the next results will even obviously give us more confidence.

53:34 And and then ultimately the updated 43-101 will give us even more confidence as as investors that this thing is real and has a substantially good chance of becoming a mine. So so it's it's important for that reason, you know, because now it's like, you know, it's like the rubber is hitting the road, so to speak, and we're executing on our plan and delivering the goods that we promised so investors can start to trust us again. Okay, fair enough. Well, Terry, I want to thank you for coming on today and going through these questions and also this great presentation. Of course, I'd also like to thank everyone in the audience who submitted questions. If you didn't get a chance to get your questions answered or if you've thought of 1 now, You can find today's presentation in the handouts tab on the right hand side of your screen, which includes contact information, allowing you to reach out directly to the team at Power Nickel. But you can also of course find more information on Power Nickel's website, powernickel.com.

54:27 Terry, before we wrap up for the day, I'd like to hand it back to you for some final closing remarks. Yeah, so I mean, I think we're gonna, as I said, we're gonna be doing some interesting things on the website. We're going to be getting the drill results up and modelable for people. We're also going to be developing this, what I call the nickel comparable for the resource companies that are in the nickel business. And so we can compare everyone on a nickel EQ, sort of nickel on the ground basis. I think we'll show very favorably in that. I think that would be great education tool for people. So we hope to get that up soon. And then of course you know we're going to soon have have the next result. So stay tuned. There's lots of good stuff coming And we're excited to keep on pushing NISQ forward and Power Nickel in every step of the way. Wonderful. Well, thank you so much again, Terry, and thank you everyone for joining us today. I hope everyone has a good rest of their Friday and week. Cheers.

55:30 Cheers. Cheers. Cheers.