Power Metallic: Digging for Green

Power Metallic’s flagship NISK project sits in Quebec’s James Bay region, a tier-one jurisdiction with stable rules and strong political support. The project is strategically positioned beside major infrastructure, including a Hydro-Quebec substation and provincial highway, keeping operations efficient as drilling expands across new high-priority targets. Quebec also offers exploration and development tax credits that stretch capital further. The polymetallic nature of the NISK deposit, nickel, copper, cobalt and PGEs, directly aligns with rising demand for battery metals. With the latest drilling expanding the mineralised footprint at Lion and strengthening the project’s growth outlook, Power Metallic’s position in a low-risk, hydro-powered region could offer a meaningful long-term advantage.

Unlike companies that add ESG later, Power Metallic is building sustainability in from day one. It has partnered with Karbon-X to offset drilling emissions and continues evaluating electric drilling equipment. At a future mine stage, the company plans to use bioleaching, a lower-impact extraction method that uses microbes instead of chemicals. The ultramafic tailings at NISK could also naturally lock away carbon. With new drilling success strengthening the long-term development case and management signalling confidence through its plan to pursue a U.S. listing, Power Metallic is positioning itself as a potential first-of-its-kind carbon-neutral nickel mine, a meaningful draw for OEMs and investors seeking clean, traceable supply.

Power Metallic’s exploration at the Lion Zone continues to show strong promise, supported by new drill hits that confirm thick zones of high grade copper. These results indicate stronger rock quality and wider mineralised areas than previously known. The company is still only drilling a small one square kilometre portion of a much larger forty five square kilometre land package, which leaves significant room for new discoveries. A one hundred thousand metre drill program runs through 2026, covering detailed and expansion drilling. Modern geophysics is improving target accuracy, and the upcoming deep target campaign, including the large underground anomaly and the Tiger target, could unlock the next breakthrough. With continued progress and growing confidence in the geology, investors could see meaningful resource growth and the early signs of a district scale opportunity.

Borehole Electromagnetic (BHEM) surveying has proven to be one of the most effective tools for delineating high-grade mineralisation, outperforming newer technologies like satellite-enabled ANT in refining drill targets. Its success has been critical in guiding recent drilling at the Lion Zone

• Drill Results (Lion & Tiger Zones): Continued drilling at the high-grade Lion Zone and adjacent Tiger Zone is expected to deliver follow-up intercepts. Step-out success could expand known mineralisation and show continuity across new targets, which would support a larger resource base and stronger economics.

• Geophysics & Targeting (Fall-Winter Update): Power Metallic will release a program update including results from its property-wide EM surveys. These findings could refine existing targets and identify entirely new zones, supporting the company’s thesis that multiple high-grade pods may exist across the 45 km2 land package.

• Updated Resource Estimate: A revised and potentially much larger resource estimate incorporating the Lion Zone and new drilling from 2025 will be critical. Investors are watching for increases in tonnage and grade that validate the exploration model and support future economic studies.

• Metallurgical Testing & Economic Studies: Early-stage metallurgical testing will be released alongside initial scoping studies, providing the first glimpse at potential recovery rates, operating costs, and mine design concepts. Positive results here would validate the company’s use of bioleaching and help build the investment case.

• Strategic Partnerships & Offtake Agreements: If Power Metallic can maintain momentum and deliver strong technical results, OEMs or battery metal consumers may look to sign early offtake agreements or invest directly. Such deals would help de-risk the path to development and signal confidence in the ESG credentials of the project.

• Advancement Toward Permitting: Moving NISK into formal environmental assessment and permitting stages would be a major milestone, showing Power Metallic’s readiness to transition from exploration to development. Stakeholders will be watching closely to assess timelines, community relations, and project scope.

As a pre-revenue exploration company, Power Metallic depends entirely on external capital to fund its operations. While recent placements have successfully supported ongoing drilling, exploration is capital-intensive, and advancing into development will require exponentially more funding. There is a risk that successive equity raises could dilute existing shareholders, especially if done at lower share prices. The company’s ability to attract strategic investors, secure joint ventures, or obtain grants could mitigate this, but funding risk remains a core concern as the project progresses.

Operating in Quebec brings advantages but also responsibilities. The NISK project is within proximity of First Nations territory, and while Power Metallic has secured initial access permits and actively engages with local communities, the permitting process for mine development is rigorous and can be politically sensitive. Delays can occur if community consultations aren’t managed effectively or if environmental assessments raise red flags. The company’s strong ESG commitments are helpful, but investors must factor in the possibility of timeline slippage due to regulatory or community issues.

Despite encouraging drill results, Power Metallic is still in the early stages of proving up its resource. Many technical questions remain: is the mineralisation continuous enough to support a mine? Will metallurgical testing confirm that the minerals can be extracted cost-effectively? Can the company validate its CO2 sequestration claims at scale? These factors can all affect project economics and feasibility. While management appears to be taking a methodical approach, early-stage exploration carries inherent uncertainty, and technical surprises can quickly derail otherwise promising projects.