Power Nickel - Re-rate on the way?
If they can deliver on the goals set out, this should be a significant winner in 2023.
Power Nickel currently trades at .28 cents giving the stock a $33 million Canadian market cap. The company is focused on the Nisk Nickel project in Quebec, near the James Bay region, which has become an extremely sought after location.
The Nisk project had a historic resource estimate from 2009, where there was over 3.1 mt of Nickel over 1%, which is a really nice grade. There was also significant copper and PGE elements in the resource estimate.
The company has been very clear in there goals and approach moving forward, they want to update the resource this summer around June/July and expect to increase the resource to between 8-10 mt of high grade Nickel. If they achieve the goal they will be looked at as a commercial project and should re-rate to the level of there peers in the nickel space that are in the same tier.
They are currently on the phase 3 drill program at Nisk, which will encompass around 15,000 metres of drilling, results have still been filtering in from the fall phase 2 program every couple weeks, and they have hit some really impressive holes. Moving forward we can expect assay results every few weeks until summer. So the newsflow will be there to continue pushing the stock higher.
In phase 3 they are going to be stepping out to the Nisk west extension and targeting the main body at depth. The image below really illustrates how massive the Nisk deposit is or has the potential to be. As long as the drill bit continues to deliver the company is going to achieve what they set out to do this summer.
In the image below you can see the current discount and the potential for Power Nickel to have a market cap of $100 million plus, if they can deliver on the updated resource, it’s also worth nothing they have significant palladium grades on this property which adds alot of value to the deposit, something peers do not have as illustrated below.
The company is focused on the Main Nisk Zone right now to achieve this updated resource, but it only sits on a fraction of their land package, the company believes they have other pods on the property and are going to be doing work this year to come up with drill targets for Phase 4 drilling, if they can find other Nickel deposits on this property then it is truly blue skies ahead for this company.
Another bonus to shareholders is that the company owns the Golden Ivan property in British Colombia, it’s actually right beside Scottie Resources land package which has been releasing amazing drill results recently. Golden Ivan had field work done in 2021 and they found lots of high grade surface samples, a drill campaign would be the next step in exploration. They also own 3 Copper properties in Chile which are in an impressive copper belt. The plan is to spin these out into a new company this summer.
The CEO of the company is Terry Lynch, he owns a significant amount of shares, and has been really trying to get the story out to the market recently. He has several newer interviews on YouTube that are worth a watch if you are interested in the company. The market has slowly been responding recently as the stock has recently risen from around .13 cent to .28 cents, but I still think there is alot of runway ahead for this company.
Here is the weekly chart for Power Nickel, volume has been picking up in the stock for most of 2023, it's had a little bit of a pullback the last couple weeks on light volume, as the stock got a little bit ahead of itself. It’s been grinding higher over the last few months and is above alot of resistance levels. The potential is here for this to continue moving higher.
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