Power Metallic Mines – Updated Mineral Resource Estimate, Exploration Update, Working Towards a PEA
Summary
Power Metallic's Lion Zone inaugural resource: 4.145 Mt (million tonnes) at 3.86% CuEq (Copper Equivalent — payable metals normalized to copper), 85% indicated.
Drilling below the resource shell shows massive sulphide (dense metallic mineral accumulations) continuing past 900 m vertical, hinting at significant expansion potential.
Lion Zone metallurgy delivers 98% copper recovery and a 25%+ copper concentrate, supporting fast payback economics for a planned open-pit mine.
Muon tomography, ANT (Ambient Noise Tomography) seismic, and SQUID (Superconducting Quantum Interference Device) magnetometer surveys are sharpening drill targeting across the broader property.
A Preliminary Economic Assessment (PEA — early-stage study sizing a potential mine's economics) is targeted for Q1 2027, with a feasibility study to follow.
Terry Lynch's takeaways
- Top takeaway He argues Power Metallic (PNPN) is now an asymmetric investment: the just-published MRE sets a floor while exploration upside at depth and through 5 active rigs remains uncapped.
- He advocates moving quickly from PEA into feasibility because, in his framing, the project pays back in about a year and financing should be straightforward.
- He plans to bring in a strategic investor — drawn from national wealth funds, mining equity funds, trading houses, or majors — within roughly the next six months.
- He pitches the broader value proposition beyond Lion and NISC: a Chilean metals spinout, low-cost Saudi Arabian exploration, and backers including Friedland, McEwen, Sprott, and Rinehart.
- He acknowledges that 43-101 mechanics left high-grade pockets and depth below 610 meters out of the current MRE, describing those additions as relatively straightforward.