Power Metallic begins metallurgical testing at Lion

Executive Summary

• Power Metallic Mines Inc. has contracted SGS Canada Inc. to conduct Phase 1 metallurgical testing on the Lion Deposit at its Nisk project.
• The testing aims to derisk the development of the mining project and determine recovery potential for copper, PGEs, gold, silver, and nickel, which is necessary for future NI 43-101 economic reporting.
• Initial mineralogical understanding suggests good recoveries for copper sulphides, with the study also evaluating potential economic concentration of rare earth minerals.

Key Details

• Contractor: SGS Canada Inc., with laboratories in Quebec City, Que., and Lakefield, Ont.
• Testing Scope: Compositing of samples and flotation studies in Quebec City; analyses and environmental testing in Lakefield.
• Sample Composition:
  • Samples derived from drill core reject material from the Lion deposit, spatially representative of known mineralization.
  • High-Grade (HG) Zone: 103 samples from 15 drill holes (massive-to-semi-massive sulphide).
  • Lower-Grade (LG) Zone: 99 samples from 10 drill holes (disseminated and veined structural hangingwall).
  • Each zone represented approximately 300 kg of sample material.
• Composite Preparation:
  • SGS instructed to generate a 75-kg composite for each zone.
  • Blended composites created using a 50/50 ratio of HG-to-LG weighting based on modelled volumes.
  • Resulted in three separate 50-kg composites for initial analyses and flotation testing.
• Metals of Interest: Copper, palladium, platinum, gold, silver, and nickel.
• Additional Testing: Potential testing for rare earth minerals (osmium, iridium, rhodium, ruthenium, etc.) if initial mineralogy suggests economic concentration.
• Timeline: Testing anticipated to take approximately 14 weeks.
• Reporting: Final reporting of results not expected before January 2026.
• Qualified Person: Joseph Campbell, PGeo, Vice-President, Exploration.

Notable Quotes

• "Metallurgical testing is one of the key steps mining companies take to derisk development of mining projects. It is also a necessary step for NI [National Instrument] 43-101 reporting on the resource and its economic potential." — Terry Lynch, CEO
• "While we have no immediate plans to produce a NI 43-101 resource report, the results of this study will enable independent bank, company and industry analysts to utilize the appropriate resource recovery numbers while developing economic valuations on the Nisk project." — Terry Lynch, CEO