Power Metallic Mines – Nisk Project High-Tech Exploration, Upcoming MRE, and New JV In Saudi Arabia
Summary
Power Metallic raised C$28.2 million with an Eric Sprott lead order, fully funding its six-rig, 100,000-meter drill program at the Nisk project in Quebec.
Winter drilling returned high-grade intercepts such as 10.30m at 4.04% CuEq, with an initial Lion Zone mineral resource estimate due by end of July.
CEO Terry Lynch argues the deposit's high grade means lower capex and higher returns, and investors should judge projects on contained metal, not tonnage alone.
Unexpected gold hits roughly a kilometer apart in the same ultramafic structure are being followed up, with assays from summer drilling expected in September.
A Saudi alliance with Amaar Mining pairs Power Metallic's exploration expertise with local capital, where drilling costs roughly half of Quebec's.
Key points on Barrick Mining
- The guest says the Jabal Sayid project, about 30 km from the company's Jabal Baudan license, is a $5 billion volcanic massive sulfide project developed with Barrick and the major Saudi mining company using 96,000 meters of drilling.
Terry Lynch's takeaways
- Top takeaway Terry Lynch argues the stock trades around 20 cents on the dollar versus polymetallic peers on metal contained tons, pointing to a $3.8 billion takeout of a peer with 800,000 contained tons as the analogy.
- He says the June 2026 C$28.2 million financing was deliberately taken to remove the funding overhang, so the end-of-July MRE and subsequent assays are not hamstrung by another raise.
- He reports the MRE was moved up partly because investors distrust the spectacular intercepts, and an independent NI 43-101 will make the high-grade tonnage irrefutable.
- He describes high-grade mineralization as meaning less equipment and lower capex — moving ~20 million tons rather than ~100 million — which he says drives higher returns.
- On Saudi Arabia, he says the company still owns 100% of Jabal Baudan, has a JV where a Saudi family office puts up 75 cents of every dollar for a 50/50 split in new bidding rounds, and sees drilling there at half the cost of Quebec.
Shad Markowitz's takeaways
- Top takeaway Host Shad Markowitz frames the guest's billionaire shareholder base — about 16 including Eric Sprott's first private-placement participation — as validation of the asset's quality.
- He emphasizes that the upcoming MRE is the right call to give the market concrete parameters on the high-grade Lion Zone, while noting it remains a snapshot in time as step-outs continue.