Power Nickel Series: Developing Canadas Next Nickel Mine (Ep. 2)

0:08 Hello everyone and welcome to the second episode of Power Nickels monthly series hosted by 6. I'm pleased to introduce our speaker for today, Power Nickels CEO, President and Director, Terry Lynch. Terry's going to walk us through this PDF presentation that he has and after we're going to be taking questions live. Remember that if you have any questions for Terry, please submit them in the Q&A tab found on the right-hand side of your screen.

0:29 As a note, because this is Powering Equals monthly series with your registration and attendance today, you'll automatically be notified for any upcoming episodes. But as always, this event is being recorded and it's going to be available on six.com afterwards. So without further ado, Terry, I'd like to hand things over to you. Hey Kent, great to be here. And It's a very timely, good time to sort of update our shareholders and interested investors in Power Nickel. Lots of things happening and all of them good. So we'll walk you through. I thought it might be a good time just to sort of walk everyone through the current deck we're using now, just to get people completely up to speed with the story. And then we'll have some time for some questions that will naturally outflow. So without further ado, I'm going to dive into the deck.

1:16 We're basically featuring this as Canada's next low-carbon, high-grade nickel mine. We really think we're going to be that, and that would be a very popular move for our shareholders. So let's dive in to see where that is. Obviously, the typical disclaimer, do your own due diligence. We're not gonna tell you anything we don't believe to be true, but always it makes sense in this world to do your own due diligence.

1:45 Basically, why invest now? We're in the midst of a drill program. If you recall the history of our stock over the last year, We started drilling about a year ago on NISQ, and we reported those results in March. They were great results. They substantiated the 3.1 million ton historical resource that we had found or had acquired, and with about 1.5, 1.6% nickel EQ, depending on what price of nickel you use. And, you know, we, the stock, you know, ran up and got to around 30 cents and then it backed off. And, you know, in the hottest nickel market in history. Why did that happen? Well, it happened because the shorts came in and pounded it out as they often do with Canadian mining stocks. I mean, that's why I started Save Canadian Mining. It's this, you know, really nasty behavior that's so counterproductive to capital formation in this country. But more about that later.

2:52 Generally speaking, you know, they came in and tried to do a financing with us. And we said, no, we're not gonna ever do that with you guys. And we called our warrants. You know, we said we'd push forward and set up for another drill program in the fall and hope for better markets. And then if we had to, and raise money, that we would basically do so by going back to our shareholders and talking to them and before we went out to outside parties. And that's exactly what we did. We basically have been drilling since mid-September like what we see. We've said that before. We thought this was a great deposit. We think it's got unbelievable potential. And so about 3 or 4 weeks ago, I can't remember exactly right now, but we said we'd do this financing and stock was around 10 cents.

3:42 And usually when you announce the financing, stock goes down. So stock's today around 14 or so. And, you know, we, you know, what's interesting with the financing, we're basically doing it at a unit deal at 20 cents, 70% of it. And thanks to the, you know, the way the tax system works in Quebec, it's highly advantageous to do what's called a charity flow through. So on a charity flow through, you basically have a Quebec-based taxpayer who has a high income tax bracket, buys the stock from the company at 20 cents. And then it then gets effectively sold virtually the next moment really of the transaction when it closes to the end user investor, in this case for 10 cents. So it gets 20 cents in the company and the investor gets in at what was the current market price. So it's a great way to get funds in the company in the least dilution possible.

4:44 And we did it with our existing shareholder group, you know, to the most part, I would say 95% of it was all existing shareholders. And that'll close sometime this week. I'm not sure exactly when, I believe Wednesday or Thursday, but imminently closed for, in the sort of 3.5 to 4 million range. And what's important about that is it gives us the capital to expand our drill program both now, which is the we'll drill right up until Christmas and then we'll get back into drilling in mid-January. And we'll obviously talk a bit more about the drilling program as we advance through the slides. But obviously, from an investor perspective, you always want to enter stocks, I think, after they're funded because then you know, obviously, that they don't need to raise any more capital, that overhang is off.

5:40 And then you ask yourself the question, what can they do with that capital, you know, and how quickly? So the best scenarios I always find as an investor is when they're actually in the midst of the news right now. So that's the situation with Power Nickel. We'll actually, we've been drilling since mid September and we expect to get assay results back in the next couple of weeks, maybe even as soon as next week. And then they should be coming out fairly sequentially from that moment forward for the next 2 and A03 months. Every couple of weeks, we'll be updating people with the assay results. And then the next thing that would happen is we would basically update our 43.101.

6:27 And in order to do that, we're doing a full metallurgical update as well. So that'll be incorporated in the new 43-101 when that comes out. And we would expect that sort of end of March, early April, somewhere in that time range. So a lot of news, a lot of good things happening. So that's, I think, a great time to identify, to get into a stock. We'll talk about our valuation relative to what we see as our comparables. You'll see that we're massively undervalued. I'll give you evidence of that. You'll make your own assessment of the evidence, but it'll be there for you. You know, I think it's fair to say we think, you know, we're on the early stages of a commodity bull market. I mean, nickel was up today, pretty much limit up, I guess.

7:18 So, you know, prices we have used in modeling for nickel has been $8 and, you know, as that goes up, obviously your resource base goes up as well and your economics go up. So, you know, I think we're in a very bullish cycle. Plus, I think investors are fearful of the overall market, but still needing places to put their capital, especially in an inflationary environment. They're going to be looking at the resource sector in particular, especially with the problems of the crypto world. And I think they're going to be looking at the battery market in specific. So I think we're in a really sweet spot. So, you know, we think nickel is one of the best commodities to be in. And North American nickel is absolutely the best nickel to be in because what's interesting with North American nickel is that there's just not enough of it, number 1, class 1 especially.

8:12 And the IRA, the Inflation Reduction Act in the US that the Biden admin has just passed, gives a lot of incentive for vehicle buyers, if they buy vehicles made with a specific amount of North American content, you won't be able to get to that amount of content if you don't have North American Nickel full stop. So that's gonna make anybody with North American Nickel a very popular figure. So I expect, we're already dealing with lots of calls from Nickel's producers and Nickel suppliers and nickel trading houses. So that's only gonna increase. So these are all very positive things for power nickel. Where we're located, it's again, most of us would already be aware of this, we're located in Quebec. It's a phenomenal jurisdiction. I believe it's the best jurisdiction in the world to develop a mine right now because of the 2 things, maybe 3. Infrastructure, like in our case, we're located right off a major highway, right across a major hydro Quebec substation.

9:17 So phenomenal logistics. We're just down the road from an airport and from a town. So supply logistics are there. The interesting thing is the Quebec government's done an amazing job of working with the native Aboriginal partners in Quebec and in our area, specifically Cree, our Aboriginal partners, and they're very pro-mining friendly. We're using a number of their services right now, and there are currently 3 mines being built in that region. So, you know, when you look at investing in mining, you've got to assess, you know, country risk and community risk. That's a very big part of your evaluation. So I would give PowerNic a full, you know, check mark on those areas. So that's very important. You know, the historic resource that we acquired, you know, from Critical Elements, you know, again, you know, we have to disclaim it. It is a more historical resource.

10:08 Until it's verified again in an amended 43-1-1, you can't necessarily rely on it. But obviously, we made the investment because we believe it does exist. We believe our drilling substantiates that and we believe that we'll have an amended 43-101 out in a few months that greatly adds to this. So this is about 1.5, 1.6% Nickel EQ with 3.1 million tonnes. We think when we update this that we'll be showing a commercial amount of tonnage. And I would say that would be, to be commercially viable in this marketplace, You sort of have to be at least 7 to 9 million tons and obviously more as you get forward. But I think we'll get to that level when we update our 43-101, which is a bullish proclamation, but I believe that will be justified in the near future.

11:04 Let's talk a bit about the deposit and, you know, why we like it. It was open at depth and a long strike. And we basically, based on that, you know, modeled it up for the first time ever. 3DGO did an amazing job of, you know, conceptualizing how the deposit would work and we executed on that and we had these great results that led to the stock running in March. And then We believe the next results, which will be coming out in the coming weeks, will be more of the same. I mean, we're not an astronomist. We don't know exactly what the results will be, but we know we're hitting our target rock and we know what the intercepts look like. So we believe that they'll be in line with this or better. So that's positive.

11:50 You know, where exactly are we drilling? So this, when you look at this map, the yellow and orange and red area, in our internal modeling, that would be resource area right now. The yellow would be sort of, as you can see in the scale, 0.5 to 0.9 nickel. The orange is 0.9 to 1.5 nickel and the red is over 2. So most of the initial drilling right now is happening in this white space, which is obviously not modeled, because there's never been any drilling there. And so while we perceived there would be resource there, we obviously couldn't model it, because it's not been proven. But our drilling is happening there, and our first results will be coming from this area. So we're pretty bullish about what that will do in terms of effectively adding to the resource and adding to the grade.

12:42 Let's move this along. Okay, So what's interesting, we sort of see, you know, it's not a very, you know, I'm not a geologist, as you know, I'm a business guy and a storyteller. But the geologists tell me that it's a fairly easy deposit to explore. It's, we've identified it's beneath these faults. And it's the way to visualize it is to think of this as a river of nickel. And the river widens and narrows. It gets deeper and shallower and it gets more cloudy, i.e. Higher grade and more clear, lower grade, as you go through there, as it meanders around. And it's pretty interesting how rivers can turn, you know, very suddenly and, you know, this deposit has done that and we've been able to sort of find the turns. So it's pretty interesting, but it's not been a difficult project to explore and that's why we're so bullish about exploring.

13:44 So These green holes are the holes that have been drilled. And that's when we report, we'll be speaking to these specific holes and you'll know where that represents on the drilling as to where we're drilling and what's coming. So we've permitted about 30,000 meters of drilling in this immediate area. This yellow area up top represents about a kilometer so that you can get a feel for what the distance is. We have about 12 kilometers of ground to explore here. So this is just a touch of what we've got, but it's going very well. So the theory is this deposit here, we call it NISC Main. We think conceptually this could hold, this sort of in the 8 to 10 million ton range of material.

14:33 And then our feeling is the way Nickel Sulfide mines work, as I understand in the world, every existing one that's ever been produced was always what they call multi-pod. So we're on 1 pod, NISQ Main. We think it will be a multi-pod environment. We'll find 3 or 4 or 5 pods collectively in a geographic area that we'll end up hopefully producing. And it'll add up to a fairly substantive number. So the thinking theoretically is as we move left and right on the, if you're looking at the screen, we're gonna come across some faults. We know these faults are out there. We don't know exactly where they are, but we have some ideas. We're drilling up to them. And then what we're gonna do is we'll step over the fault, step out 50 meters on either side, left and right, and drill at depth. And hopefully we'll clip the next pot.

15:30 That's the theory, but we're doing a lot of work on the next pod scenario as we speak. So more to come on that as we go forward. This is an overview of the overall property package. So as I said, we would expect probably, this is an ultramagnetic deposit. The other ones in the country, in Canada, that were, have been, you know, developed were Lynn Lake, which was 22Mt, and Voisey's Bay, which is plus 50. So, our geological team feel that we'll be somewhere between those. So that would be obviously very exciting if that happened, then that would make this 1 billion dollar development in our view based on current economics.

16:17 So what are we doing just on the action plan?

16:20 We're going to continue to advance drilling at NISK. When we initially started, we were around 3,000 or 4,000 metres. Now we're doing 7,000. And then we would plan to do another 7,000 or so starting in mid-January going forward. We'll obviously try and find these other pods. And we're obviously going to update our 43-101 and get that out as quickly as we can with the full metallurgical workup. And then we would need, ultimately we expect we'll be sort of fine for drilling up until mid-April, late April, and then there'll be spring break or the summer break up, which is about the only time you can't drill at NISQ.

17:10 It's about a month there. And then early in June, we would expect to set forth on a drill program from June until December of 15,000 plus meters or so. So we don't need any more money at the moment or after we get this funds in, we'll be fine through this current stage and the next 7,000 meters to do the 15,000 meters at some point we would need to do that. But we'll certainly get our 43-101s out by then and obviously the news flow of our drilling. So that will have a fairly big move on shareholder value. Let's talk about shareholder value and how that might be manufactured here. What would be the steps? Well, there's really 3 ways to win.

17:56 The first is mining is sort of a, It's a very difficult business as you know, and it's basically in mining, you're a 0 until you become a 1. So what do I mean by that? Well, most exploration plays just don't make it. We know that statistically, it's very tough to find a mine. But When you do, there's some point where you go from being just an exploration play and a sort of a long shot of actually finding something to, oh my God, they actually found something and now it's gonna be commercial. That transition period is when you go from a 0 to the one and your valuations change. So as an example, we're getting paid roughly, give or take 10 cents a pound of nickel in the ground. Our peer group, which we'll walk to in just a sec, is getting paid anywhere between 4 to 10 plus times that.

18:48 Well, as the market perceives us as being commercial, we're gonna move up. We're gonna get somewhere in there. We're gonna get, depending upon the market evaluation, somewhere between 4 to 10 times for our nickel in the ground that we currently are. So that'll be a big day for us. And it probably won't be just 1 day, it'll be over a course of time as people believe and see the drill results and say, okay, this is happening. So we're getting a lot of eyeballs now and that's a good thing. So that's number 1. You get paid more for the nickel you got in the ground by showing that you're gonna be commercial. So that's our first and biggest move. Second thing is, hey, find more nickel. Because the reason you're gonna get to be more commercial is because you found more nickel. So we would have to literally triple, I think, what we've got in the ground to be considered commercial. And I believe that is gonna happen here in the next short while. So obviously, if, you know, and what's the upside of that? Well, I guess the upside is like our exploration team is looking at Lynn Lake and Voices of Vaincy, somewhere between 20 and 50 million tons is the ultimate upside for something like this.

19:52 Okay, that would be a great result for us. That would be a huge potential win. And then finally, As we see today with nickel being limited up, we modeled our economics at 8 buck nickel. Nickel today I think is 12 or 13 bucks. So there's significant upside potentially in the nickel price as well. So there's a lot of ways to win a nickel. And I think the other thing to consider is that's just general nickel, and then I'm gonna go into a little bit about the power of nickel plus, which is the fact that we're North American nickel, but let's jump to this slide. These are, you know, there's many nickel projects, okay, but not all nickel projects are the same. So I don't consider, with due respect, Giga Metals or Canonical or those types of deposits as our competitors or peers even, because I don't think we're really competitors. We're all, the world needs more nickel. They need giga to get in production. They need cannon nickel to get in production.

20:54 But they're a different type of deposit. They're a big volume, low grade deposit, okay? Different set of economics, takes 1 billion dollars plus to put in play. It's a different animal. So I'm not going to spend any time comparing myself to them because that's just not us. The guys you see on the screen here are much more like us. So these are some Australian plays, some Canadian plays. Noron was just bought by Wailu for 480 million US. That's a very comparable project. And you've got the Botswana in play, I think it's a premium nickel, another comparable. So those are the guys that we sort of see as our comparables because of, you know, the high grade nickel polymetallic nature of our deposit.

21:41 So I think when we make our move to being commercial, we're gonna find ourselves on this scale, on this page, and we'll be somewhere, you know, I think logistically our mine is the easiest mine to develop of any of these mines. I think it's a very, you know, shallow depth, starts at 80 meters and runs down. It's in a tremendous jurisdiction, arguably the best jurisdiction here. So I would think we'd be favorably matched in here. And so if that happens, you can imagine, our market cap today is 10 million. So you guys do the math. That's obviously pretty exciting for us as shareholders. So that's the nickel story. Before I move on, I will make one comment about North American nickel.

22:28 I was just asked, I'm gonna go speak actually on North American Nickel at the World Mining Congress in London in mid-December. And I was happy to get an invite that was like 30 speakers, including the Chief Investment Officer of Blackrock. So we are by far the smallest guy speaking. But we're going to be talking about North American nickel and why I think there'll be bifurcated pricing for high-grade North American nickel. Why would that be? Well, basically, vehicle manufacturers in the U.S., because of the IRA, the Inflation Reduction Act, want to provide a full subsidy to their buyers. Well, they won't be able to get there unless they have North American nickel. So there's really not a lot. I mean, Talon Metals is probably, It looks like that'll be the next mine that gets developed.

23:18 And they got 120 million or so, I think there's a number, from the U.S. Department of Defense to expedite that. And you know what? Canadian mines are eligible for funding from the U.S. Department of Defense as well. And we're certainly going to explore that as we move along the pathway here. So it's pretty interesting what's happening that way. And we think that North American Nickel premium will be something that we benefit from when we ultimately come to selling this opportunity down the road. Just an update on some of our other assets, which I'll quickly rip through. This wasn't the year to spin off our gold and copper assets. The mining markets, as you know, have been savage and we've suffered, you know, obviously stock price wise from that.

24:06 And the exploration companies, especially in that sector, have been even more hammered. So in the future, I suspect, it looks to me like The gold and silver markets are turning, the copper markets have turned. So I think there'll be a better scenario next year on this. So we've got basically our Golden Triangle project, which we love. We thought was going to be a flagship before I found NISQ. Just to refresh your memory, it's basically at the town of Stewart. It's the mountain overlooking the town. It's never been drilled. Down here, this is Strikepoint. This is Scotty Resources. The project, We did some sampling over it last year and we got 0.5 ounce material at several points at surface, 0.5 ounce gold. That's exciting.

24:56 Strike points best results are literally on our property line. So it's pretty interesting play and it's very underappreciated at this moment in time. What are those plays worth? You know, something in this range. I say to people, I believe our copper gold assets are worth probably double our existing share price. That's just my own internal belief. That's what we used to trade at. This is sort of supported somewhat by our neighbors and what they're trading at.

25:26 I don't think people should buy power nickel for the copper and gold play. You know, I think you should buy it because you believe in the nickel story, but the copper gold stories will be a nice hedge and a tremendous bonus when we transact them. So that's what's happening with gold and Ivan. We'll look to transact Gold and Ivan and possibly do an M&A transaction or a spin out in Q3 of this year. And we'll be ready to drill there in June. So that would be what would be happening in Golden Ivan. On Chile, we obviously told everyone we were waiting on the results of the Chilean constitutional debate, and that's turned out to be so far positive.

26:15 They pushed away from the brink, and they still remain a good company to invest in and country to invest in and move things along. So we're now engaging in conversations with folks on our Chilean assets, which are multiple and good assets. We haven't got anything to the table just yet, but we expect over the coming months we'll be able to do something there transaction-wise as well. So a nice kicker for our shareholders. Finally, our production royalty, or pardon me, our royalty that we sold to a project where we sold to tech for 3 million at 3% royalty. That we thought would have been in production by now, but got pushed back when they mothballed QB1 and focused on QB2.

27:02 So when would this likely get in production? You're looking at 7 to 10 years is my guess. The ore grade on this is such that there are many copper mines in the world that are producing this type of ore grade, so I believe this will become a mine. I 100% believe that. And we would get using QB1 revenue as an example, if you used our report, our top year in revenue for QB1, I think was in the 500 million range. That was at lower copper prices than current. And 2% of that would be 10 million. So we could get sort of that type of number, 8 to 10 million a year on this when it gets rolling in today's dollar numbers, whatever that might be in the future. So it's not an insignificant asset. It's not why, again, anybody should buy the stock, but we've had offers from people to steal it from us, and we've turned them all down because while our balance sheet has never been crazy strong, although it's getting stronger now.

28:04 We internally are not weak, and we said no, we'd never do that. We would always keep our royalty asset. However, we're exploring possibly moving it into an entity where we could get royalty exposure on a group of battery metal projects that is also super undervalued and maybe that may make sense, we'll see. So there may be something interesting happening there. Again, interesting sort of accentuation of the value proposition. So the team, again, pretty lean. It's just myself and Ximena, she runs Chile for us, that are running the show. We've just plowed the money in the ground. And then as I think after this round, we'll probably have to add some staff as we're gonna move into doing a PEA for Power Nickel for NISC. And we'll need some help with that cause I'm not a, as you know, not a geologist or an engineer. So that'll probably start to come, but with the increased market cap, the board has been always super supportive.

29:10 Greg used to be MD at Haywood, a very experienced financier, and he's in the mining sector now. Peter's a retired lawyer, done a great job shepherding us through all the trials and tribulations of being in junior mining. And Les is a very successful businessman who's been there, you know, with his sage advice and checkbook when we needed it. And we thank them all for their service to the company. This is our current deck in terms of the cap stack. We'll add about 27 million shares in this round And that will be the new cap stack. So we'll get that out to you for the next update in about a month.

29:58 So again, just summarizing why now's a great time to, if you're already in Power Nickel, God bless, consider adding more, because I think it's gonna do phenomenal over the next little while, or tell your friends. And I don't say that jokingly, but I really, you know, this is, I think it's really gonna be a good time to be a shareholder. So why? Well, we got drill results that are coming. You know, we're trading at a massive discount to our peer group. I mean, this is all evidence, it's all there. If you believe in the Nickel story, then this is in fact, a fact. You know, I think, you know, we've shown based upon our historic drill results, even the new ones we did last year, that this is a great place to grow and advance.

30:49 You know, we're obviously, we're in there drilling now, we're expanding drilling, so unless you're completely insane, you don't increase drilling unless you like what you see. So, you know, we're gonna get, you know, the new updated 43-101 out with the new updated metallurgical studies out end of March, early April. I think it'll show a massive increase in resource and show that we're going to be commercial. And as I said, when you get commercial, when you go from being an exploration play to hoping to find something, to being a commercial situation, there's a big value jump. I don't know exactly when that's gonna happen, but I believe that's about to happen, so that'll be a great time for us. We've got some other things that are working for us. We've got, obviously, the better metal sectors, hot, we're getting a lot of, I'm doing a lot of speaking now, a lot of podcasts, we're getting more and more exposure. I think that's all good for us.

31:50 The spin-offs, that will come. Or there'll be some accretive M&A transaction. That'll be a nice bonus for us. And that'll be a happy day. Obviously, the leadership team has been committed to this project. We've written our own checks. We've invested our own money. We've suffered through the downturns and stayed here and fought it out. And I think we're about to get paid for all that grief. And we're super lucky in that we're based in Quebec and in BC where we've got favorable tax structures that enable us to advance the cause with minimal dilution. So that's the update for Power Nickel.

32:40 I think that's about it. So maybe, Cam, might be time to sort of go back and take some questions and see where people want to go. Absolutely. Up to 100%, Terry. And yeah, just as a reminder to everyone that's in the audience, if you have any questions, please ask them in the Q&A chat on the right-hand side of your screen. Terry, we've already got a bunch, so let's just dive right in. Marcus wants to know what would you say is the primary reason for current depressed market valuations? Well, I think for sure there is a flight to liquidity that's happened as a result of the, you know, the, you know, I think over exuberance on the one front and then the Russian-Ukrainian, you know, war was the catalyst for the over-exuberance, for the air to be let out of the balloon, all that pent-up money printing, etc.

33:34 So all of a sudden, people left and there was a flight to liquidity. So I think everyone got punished. Some got punished more than others, but that's generally why it happened. And I think, so you say, well, will it ever change? Because it's still a very scary world out there. And I was talking to a Swiss fund manager just last week about this, about the macroeconomic outlook. And like I said to him, I said, you know what, even in the Great Depression, some stocks went up. And I think what you're gonna see now is there's gonna be a tremendous move in the resource sector, especially in the battery metals project, especially in battery metal projects that don't have a ton of CapEx required, and that have a real pathway to production and to valuation.

34:23 And I think, you know, luckily for us, high-grade nickel sulfate mines are not inordinately expensive to develop. They're like 200 million or so, give or take. That's a lot of money. If obviously, if either of us had to write a check for 200 million, that would be tough. But in the mining scope of things, that means you maybe you'd have to raise 60, 70, 80 million in equity. That's not an impossible number, and especially for the IRRs that would be available for a project like this. So I think it's all very doable. So I think that while the macro picture still remains murky overall, and I'm not calling it an end to the current recession that we're all in at the moment. But I do believe there is going to be a switch to investing in resources, maybe in specific battery metal sites. So I think we'll do well, even despite macroeconomic headwinds.

35:22 100%. What places PowerNickel on top in terms of carbon-friendly production? A couple of things. Number 1, we're basically... I would say in the future, ESG, people will start to look at mines and say, ESG per unit of output, okay? Like your carbon cost per unit of output will be the drive. So if you're a higher grade mine, that's obviously gonna have less output because you're getting more of your material, more nickel, more cobalt, more copper, more palladium per unit of effort. So that's number 1, higher grade. Second thing, we're blessed because we're across the road from a major hydro-quebec substation. So we're gonna use hydroelectric power, which is green, to power our mine. So that's number 2.

36:15 The third thing that we're doing some research on now is, as it turns out, this particular type of rock that we have our nickel in may well be a carbon capture vehicle. So there's been a bunch of work done by a very prominent professor at UBC on this. And we're going to engage and learn more about it and see how it can work for us. But it's possible tailings could actually be carbon capture vehicles. So that it actually just by nature of the rock itself, it absorbs carbon. So I think we're gonna be, honestly, I think we'll be one of the greenest nickel mines ever built. So that'll be fantastic. That's awesome to hear. When is the financing going to close? Yeah, you know what? I mean, I thought it was gonna be closed by now, honestly. And it's not that the money hasn't been there, the money's been there all the way through. It's just been, you know, with the critical mineral tax credits, there's just been a few more pieces of paper that we had to get in place and, and done. So I expect it's, it's, it's probably going to close, I would think Wednesday, Thursday this week, but it's imminent.

37:19 Okay, and there's a couple of follow-up questions for that, so I'm just gonna stick to that right now, but why did you do the financing in the first place? Yeah, you know what? I mean, obviously we held out as long as we could. We were hoping for, I would have rather had done the financing where it should be in my mind, but I hate less. You know, I always have to disclaim, I'm long and therefore recommend, so people have to understand that I'm a believer. But we think honestly, this thing should be north of a dollar based upon the numbers you see on your screen in front of you. Like we're worthy of being in that category and we'll get there. So why do we do this now? Well, we had no choice. We were drilling, we like what we see, We can't escape where we're at unless we move forward and show we're commercial. So we've got to get there. So we did it with our existing shareholders because we know, we believe there's a fundamentally a significant short position on the company that happened when they were trying to play games after that last when we put out our press releases and had the stock run.

38:25 And we're just not going to do business with those guys. So we think what's really interesting about Power Nickel at this stage, this is really the last financing that we absolutely needed. So we needed this money to get to this commercial stage. Once we get to the commercial stage, even if let's God forbid, the stock didn't move for some reason that we don't understand today, but we could do a deal above market conditions with industry if we have to, to finance this thing going forward. So we won't have to go back in the market. So if you're short, you know, I've given you like a heads up, brother, you better be covered soon because it's gonna get worse for you. And I think the neat thing about nickel, especially North American nickel, is there's all sorts of suitors. I mean, honest to God.

39:16 I mean, we've got the producers, 1 in, the Glencore's, et cetera, you know, Valet's, Wailu, et cetera, those guys. You've got the consumers, LG, Panasonic, Tesla, those guys. Then you've got the battery makers and you've got the trading houses that deal with all these people and they all want the North American football. So, nickel. So, there's no shortage of dense partners for power nickel as we need more money once we have this round of proof in. So that was really killer for us to get done so that we can get to this next level of proof. Now, I fully expect the market's going to react. And the short thing is just a bonus. Again, you should buy this deal because you believe the nickel story, 100%. If you don't believe the nickel story, find another story you believe in and invest there.

40:09 Fair enough. Question about what you see as the catalyst roadmap over the coming months. Yeah. So basically, first, I think is the financing getting close because I think there'll always be and it's well warranted. There's always doubting Thomas' on financing until the money's in the bank and I get that. So we're going to get the money in the bank this week and that'll be one thing. Second, a catalyst will be, okay, let's look at the assays because again, the drill bits don't lie. So when you get the assays out, you're able to look at that and say in the context of what we've represented, what we sort of, you know, the 1.5% Nickel EQ, this sort of thing. As long as we're hitting that or better, then you know resources are gonna grow and you're getting better grade and that's all good for us. So the more we layer that out and people see, holy cow, they're hitting on all their holes, or a vast majority of them, that's phenomenal drilling, and that's gonna increase their resource. So yeah, you know, Terry's prediction that they're gonna get commercial, maybe we gotta start to believe this guy. So I think that's what's gonna happen over the next several months. And then we're really, we're going to be back in drilling in January.

41:21 And again, it takes about, you know, mid-September was when we started drilling. So we're getting, we've been told we're going to get assays late this week. And then it takes a couple of days to QC them and get them out next week. So that takes about 10 to 12 weeks for the next round. So again, if we start mid-January, that would put us to mid-April, where we're starting to get the next round of assays on the new drilling. So, and in between there, we would have an update of 43-101. So, news event wise, we're gonna be, you know, banging out the assays, the updates, and more assays. So, it's gonna be pretty substantial, and that'll carry through it until June. And then we'll, then the next thing we'll be doing is we're gonna be working on a PEA for the second half of the year. We'll wanna get, you know, a PEA out so that people can see the, what would the economics roughly look like in building something like that here.

42:22 And then in 2024, we'll continue to identify these pods. We've got some interesting stuff we're working on, the geophysics and magnetics that could really enhance discovery here in the region. And we'll be working on that, so that'll come out. And then we'll look to get to a pre-feasibility study in 2024 and continue to mark out the resource because what will we get paid for in the end? Well, you get paid for the resource we discover and for de-risking it. So we would think that ultimately we're probably 18 to 36 months away from a ultimate transaction here, but that's the roadmap.

43:15 No, fair enough. Thanks, Terry. And there's just a question from Michelle asking how many years until you start production? So there's some interesting talks about from our governments about, you know, green lighting in an expeditious way, critical mineral projects such as NISQ. So a good way to answer it, I guess, is look at Talon Metals. They're currently not in production. They're currently just dirt like we are. They're further advanced. They've got, you know, you know, a PEA done and they expect to be in production in 2017. I think that, you know, that will take, you know, significant, you know, work on their part And God bless, I hope they make that happen.

44:08 For us, or 2027, pardon me, 2017, I'm losing my mind, but 2027, For us, I would think as quick as we could do it would be 2028, 2029, using all the expedited efforts from the governments to green light these things, but that would be happening. Now, we, as I said from the outset, power nickel will not build this mine. That's not our expertise, but the people we sell it to, that's the pathway they could probably look to. But we do have, I think, we do have an ability to go and get, I think, some additional funding from the US and Canadian governments to build the mine, that could be some part of the reward for our shareholders.

44:54 You know, Talamel's got, I think 120 million US dollars to help to towards their building of the mine, you know, set aside. So I think those types of projects are available and we'll certainly look to see if we can justify getting some of those for our project. All right. We also have a couple of questions about this topic. So we have a general question about if you could just talk about drilling, but there's also a question from Klaus about when you're drilling Golden Triangle. Hi Klaus, how are you doing? Klaus is a big shareholder, been here since, for forever. So, great guy. Golden Triangle will probably get drilling in June of next year, would be our guess. And we'd go from there.

45:40 And then the current state of drilling, I mean, obviously, We raised the funds so we could expand the drilling. So expand it significantly before Christmas and obviously doubling it again after Christmas. So again, I mean, obviously, unless we're completely mad and remember, we're spending our own money, so we wouldn't really be mad. We like what we see with the drilling. So again, we're not in Amsterdam, so we can't forecast what the assays will be but we believe they'll be in line or better than the drill results we produced today. So that's about all we can say. Fair enough. Mitch wants to know how long until you think that power nickel is going to get back over 40 cents. Well you know that could happen very soon. I'm optimistic that that happens, you know, before the end of the year, but again, that's, I've got no, again, not Nostradamus, and you can't hold me to that, but it's certainly well warranted, and It should happen tomorrow in my view, or this afternoon, but it probably won't. But it's coming, I believe, because based on the financing getting done, based on the assets coming out, and again, supporting the story, and there's a lot of eyeballs on us now, we're getting out there, and I'm now pounding the table saying, this is exactly what I just said today.

47:08 And if people can't look at the evidence that we've given and see this as a fundamentally great speculation, a great place to place a bet for part of your investment dollars, well I'd like to know where the better ones are because I like to invest in them too because this is phenomenal right now. Awesome. Mitch also has a question about earning extra shares as shareholders for the Golden Triangle. This is in reference to something in the past. So maybe you can answer that. Yeah, yeah. So basically what we've talked about in the past was spinning out a company that either would hold just the Golden Triangle or the Golden Triangle and the Chilean assets. So we didn't, we had planned to do it, you know, last year and then the market just completely crapped out and we just felt that would have been the wrong time.

47:59 And we honestly, We needed to focus what limited resources we had on NISQ, which is where the real home run is going to come here. But going forward, we'd expect that it looks like the market's going to be open for exploration in projects like the Golden Ivan and in Chile, which are copper, silver, gold. So both precious metals and those copper, silver, or power metals or electric metals, will have interesting sort of investors. So I think we could do that and we'll do that this Q3 and either we'll end up spinning it out or we'll end up doing some M&A transaction that allows us to get a stock that we ultimately either can monetize to prevent dilution in power nickel, or we can dividend out to our shareholders to give them a bonus stock to have, which was the initial concept.

48:58 All right, well, look, Terry, That's all the questions we've received for today, so I want to thank you for coming on and of course everyone that's joined us today, especially those who've asked questions. But before we wrap up, I'd like to pass things back to you for some closing remarks. Okay, well listen, I mean we've tried to give you guys an update on everything. This is sort of as current as it can be. As you can see, we're pretty excited about the progress we're making and we're really looking forward to driving it home for our long-suffering shareholders. I've been in this thing for 10 years and I got into it to help my best friend in the investment and it's been a long time. So I think we're finally going to get into some happier, we're going to be turning the frowns upside down. And so I think it's, you know, I know, you know, people like Klaus has been here for, you know, 10 plus years and, and he's, he's suffered along with us and written checks along the way and last and many, many, many great shareholders that will enable us to survive and get through here.

50:03 I think we're finally going to be able to get some rewards here. So it's a good time. So watch your emails, get the updates, see that the financing gets closed, see the assets come out in our line, what we're talking about. And I think, hold on, it's going to be a good run here and we're finally going to get some long rewards for our long-suffering shareholders. So that's about it for now. And We'll look forward to talking in a month or so. We'll have a bunch of the assays that we can speak about. We may even do a, Cam and I were talking about it beforehand, we may, as the assays go out, we may do an actual drilling update call on the assays, what that might mean. So we'll have that conversation in the coming weeks. So until then, thanks for attending. And as always, if you have any questions, you can email me directly and I'll try and, we're pretty transparent here. So I'll be okay if we can. So, and have a great day and thanks for attending.