The past month has been a wild ride for Gold (“Au“), Silver (“Ag“), Copper (“Cu“), Platinum (“Pt“), Palladium (“Pd“), and Nickel (“Ni“) prices. Yet, in long-lasting bull markets, multiple significant pullbacks are the norm.
This pullback offers investors a buying opportunity in select junior miners, ones with strong financial backing, ample cash in the bank, exciting projects in Tier-1 jurisdictions like Quebec, Canada, and meaningful blue-sky potential in other locations.
One of my favorite names continues to be Power Metallic Mines, led by CEO & junior mining thought-leader Terry Lynch, and Chairman Peter Kent. This is a company backed by over a dozen billionaires, including; Robert Friedland, Gina Rinehart & Rob McEwen.
Billionaires surround themselves with the world’s smartest geologists, mine engineers and investment professionals. The amount of due diligence done by these backers is/was quite substantial. In addition to NISK Main/Lion/Tiger, there are four high-impact targets.
Elephant, (a deep, Ni-rich, BHEM anomaly below hole #64), Tiger Deep, (west of Lion, high-grade intercepts booked, new deeper structure identified), Fold Hinge [Hydro Lands], (considered the other half of Lion, actively being drilled), and Lion West (mineralization appears to continue beyond a fault).
In prior articles I’ve shown a table of the 1-yr performances of Power Metallic’s key metals. Three weeks ago these metals were a lot stronger, especially silver, but I believe most will be higher on 12/31/26 than today.
On January 19th, preliminary metallurgical testing results on the exciting Lion zone was released. Lion is ~45% Cu + ~55% precious metals, (~40% [platinum + palladium], ~10% gold, ~5% silver). The NISK main zone is Ni-heavy, but Lion and other zones are more poly-metallic.
I’m surprised Power Metallic’s share price is not meaningfully higher on the metallurgical news as it were spectacular. Although preliminary, the following outcome was well above expectations… Cu at 98.9%! Pt at 96.8%!!
Cu: 98.9%, Pt: 96.8%, Pd: 93.9%, Ag: 88.9%, Au: 85.0%, Ni: 77.1%
Most poly-metallic projects struggle to exceed 90% across multiple metals, often requiring more complex circuits, selective flotation, and/or hydro-metallurgical steps. Simultaneous base & precious metal recoveries with conventional flotation at this stage is noteworthy.
The results delivered a good grade sulphide concentrate of 25.8% Cu, 1.2% Ni, 4.8 g/t Au, 41.4 g/t Pd, 23.4 g/t Pt, and 159 g/t Ag. These metrics confirm good potential for the mineralization’s suitability for a low-risk, conventional flotation flowsheet.
SGS noted a strong flotation response, and “potential for value-added products in the battery, electrification, and clean energy sectors.”
In my view, these recoveries are exceptional and place the deposit in world-class territory for early-stage, poly-metallic, Cu-Ni-PGE-Au-Ag sulfide systems. Speaking of the metallurgical news, CEO Lynch commented,
Could it be that some investors still consider the Company to be a Ni junior, despite its name change and the clearly poly-metallic assets? That would be a mistake. Speaking of Ni, readers should note the latest news on the world’s largest Ni mine…
This brand new 70% quota cut could put a floor in the Ni price. With metallurgy looking great, drill results take on added importance. In my view, despite being pre-PEA stage, Power Metallic already has enough mineralization to deliver a standalone mine.
On February 18th, management announced additional drill results, highlighted by 20.4 meters of 4.11% Cu Eq. in Hole # 25-046, and 8.6 m of 6.84% Cu Eq. in Hole # 25-045.
As a reminder, the Summer-Fall 2025 program searched for down plunge extensions to the Lion zone, and infill drilled to define zone geometry to a confidence level supportive of an Indicated Resource classification.
PML-25-046 was expected to be lower-grade based on visible Cu, but assays showed strong Pd (5 g/t) plus Pt & Au, underscoring Lion’s prolific poly-metallic nature. Western step-outs confirm grade continuity and show expanding higher-grade lodes.
CEO Lynch commented,
The balance of the Fall drill results are expected in February. Management will provide a detailed update on exploration plans at Lion West, Hydro Lands, Tiger Deep and Elephant, and initial exploration activities on the Li-FT acquisition ground.
In addition, there will be further updates on the Lion Zone East expansion drilling following the recently recognized high-grade mineralization extending from the Lion main zone.
Compare February 18th’s grades/widths to the best intervals from early December of 4.4 m at 12.18% Cu (14.34% Cu Eq.), from within 20.4 m of 2.91% Cu (3.58% Cu Eq.), and early November’s 5.35 m at 11.97% Cu (16.35% Cu Eq.).
These intercepts are just the latest from the past 3.5 months, a lot more drilling is coming this year. Added to the eight blockbusters shown in the following image, the Lion zone alone is looking like a monster.
The entire Lion-Tiger strike length is at least 5.5 km, a large area to explore and possibly discover additional high/medium-grade, shallow/moderate depth Cu, Ni, Pt, Pd, Au, cobalt mineralization.
The questions are — how large might the Project become — and how many new deposits might be discovered. SGS performed a Locked Cycle Test on a blended composite (representative run-of-mine feed) from both high & low-grade zones.
Readers are reminded that Power Metallic has secondary assets that could be reasonably valuable, but are valued at roughly zero. Saudi Arabia is one of the world’s most prominent up-and-coming mining jurisdictions. Power Metallic is front & center there, as is Robert Friedland.
Infill & extension drilling on existing & new zones, and possible new discoveries, coupled with excellent preliminary metallurgical findings, sets the stage for a transformational 2026.
Disclosures/disclaimers: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Power Metallic Mines, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market-making activities. [ER] is not directly employed by any company, group, organization, party, or person. The shares of Power Metallic Mines are highly speculative, and not suitable for all investors. Readers understand and agree that investments in small-cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making investment decisions.
At the time this article was posted, Power Metallic Mines was an advertiser on [ER] and Peter Epstein owned shares in the company, but may acquire shares in the open market in the future.
Readers understand and agree that they must conduct due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reason whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.hing
