Power Metallic Mines Inc. (TSXV: PNPN; OTCBB: PNPNF) has appointed BBA Inc. to lead a preliminary economic assessment of the Lion and Nisk Main deposits at its Nisk polymetallic project in Quebec.
The study will evaluate potential mining and processing methods, infrastructure requirements, capital costs, operating costs and preliminary project economics. Power Metallic is targeting completion during the first half of 2027.
No initial development configuration, production plan or preferred mining sequence has been selected.
Lion Forms the Study’s Primary Basis
The PEA will use the Mineral Resource estimate announced on Sept. 8, 2026 as its starting point. Lion will provide the principal basis for the development study, while additional technical work will determine whether and how Nisk Main should be incorporated.
Lion contains an indicated Mineral Resource of 4.145 million tonnes grading 3.86% copper equivalent. The underlying average grades include 1.68% copper, 2.61 grams per tonne palladium, 0.85 g/t platinum, 0.49 g/t gold, 12.21 g/t silver and 0.10% nickel.
The deposit also contains an inferred Mineral Resource of 601,000 tonnes grading 4.01% CuEq.
Approximately 2.78 million indicated tonnes and 100,000 inferred tonnes were reported using open-pit constraints. The remaining 1.36 million indicated tonnes and 501,000 inferred tonnes were reported using underground constraints.
Those classifications describe the assumptions used to report the resource. They do not represent an approved mine design or demonstrate that either mining method will be selected.
Nisk Main Role Remains Under Review
The Nisk Main deposit contains an indicated Mineral Resource of 2.703 million tonnes and an inferred Mineral Resource of 2.016 million tonnes.
Nisk differs from the copper- and precious-metals-dominant Lion deposit. Its resource contains nickel, copper, cobalt and platinum-group metals, with separate nickel-equivalent and metallurgical assumptions.
SGS Canada is conducting additional metallurgical work on Nisk Main, with results expected before the end of 2026. Power Metallic said those results will help determine the deposit’s role in the preliminary development plan.
The Mineral Resource figures represent project totals. Power Metallic holds an 80% interest in the core Nisk claims, while Critical Elements Lithium Corp. holds the remaining 20%.
Engineering and Environmental Work Advances
BBA will coordinate the engineering, project economics and preparation of the NI 43-101 technical report. SGS will provide independent qualified persons for the geological, resource and metallurgical sections, while GeoVector Management will continue supporting the project’s geological work.
Drilling at Lion Deeps will continue while the PEA is underway. Results from holes completed after the resource estimate’s April 19, 2026 data cutoff will be reviewed, but they are not automatically included in the current Mineral Resource or the initial study basis.
Environmental baseline work began in January 2026. The first field season runs from May through October, with a second season planned for summer 2027.
Power Metallic also appointed Quebec-based ethos stratégie to assist with community and Indigenous engagement. These programs provide information for project planning but do not constitute environmental approval, community consent or permission to build a mine.
Economic Results Have Not Been Released
The PEA has not yet produced estimates for capital costs, operating costs, production, mine life, revenue or economic returns. Its first task will be to establish a basis of design and compare potential development options.
Copper-equivalent grades used in the Lion resource depend on company-disclosed metal prices and modeled recoveries. The calculation includes assumed prices of US$4.80 per pound for copper, US$1,200 per ounce for palladium, US$1,400 per ounce for platinum and US$3,600 per ounce for gold, among other inputs.
Those assumptions are used to express several metals as a single equivalent grade. They do not represent guaranteed recoveries, realized prices or project revenue.
A PEA is an early-stage economic study and may incorporate inferred Mineral Resources, which have a lower level of geological confidence than indicated resources. Nisk currently has no Mineral Reserve, and the project does not have demonstrated economic viability.
Completion of the study during the first half of 2027 remains subject to engineering progress, metallurgical results, technical assumptions and other project risks.
Sources
- Power Metallic Begins Nisk Preliminary Economic Assessment — Oct. 5, 2026
- Power Metallic Announces 2026 Lion and Nisk Mineral Resources — Sept. 8, 2026
- Power Metallic — Nisk Project
Editorial Disclosure
This article was prepared from publicly available company disclosures and technical information. Mining Markets Report received no compensation from Power Metallic Mines Inc. for its preparation or publication and has no disclosed business relationship with the company.
The author and publisher do not hold securities in Power Metallic Mines Inc. The Mineral Resource figures, metallurgical assumptions and project plans were supplied by the company and have not been independently verified by Mining Markets Report.
Statements concerning the PEA, engineering, metallurgical work, environmental studies, community engagement, continued drilling, potential development options and targeted completion during the first half of 2027 are forward-looking and subject to technical, geological, regulatory, permitting, financing, social and market risks.
The PEA has not produced project economics or selected a development configuration. Mineral Resources are not Mineral Reserves and do not demonstrate economic viability. Inferred resources carry a lower level of geological confidence than indicated resources.
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Junior mining investments can be highly speculative. Readers should conduct their own due diligence and consult a qualified financial professional. Read the full Mining Markets Report disclaimer.
