Power Metallic Demonstrates Positive Initial Mineralogy Results – PGE Enrichment Associated with Chalcopyrite and Cubanite

Power Metallic Mines Inc. (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) provided an update on preliminary mineralogy scans preformed by IOS Geosciences based in Chicoutimi, Quebec.

Detailed microscopic scans are being performed on selected mineralized samples from the Lion zone to understand the characteristics of the mineralogy. This will help inform future metallurgical recovery studies on the Lion Zone. Approximately half of the suite of over 100 samples selected to represent the various mineralized zones at Lion have been completed, and results to date are encouraging for potential conventional sulphide concentrate recovery methods.

The Lion deposit has two zones of mineralization defined by drilling, consisting of a High-Grade zone and a lower grade Hanging-wall Zone. Current understanding is that the vast majority of the metal value in the deposit is contained within the High-Grade zone, consisting of semi-massive to massive copper sulphide mineralization.

The scans by IOS reveal the mineralogy of the economic metals, and their host rocks. This characterization is critical for determining potential metallurgical recoveries, in particular for understanding the mineral species of the high value copper and PGEs. Of utmost importance is understanding the characteristics of the High-Grade Zone containing the bulk of the metal in the deposit.

Work to date has shown that the copper mineralization is contained within coarse grained chalcopyrite and cubanite, both which should respond well to conventional sulphide concentration methods, similar to processes carried out on Sudbury type ores.

Additionally, the scans have shown that the majority of PGE mineral species occur within or attached to the chalcopyrite and cubanite (Figure 1). This suggests the potential for very good recovery of these PGEs in a copper concentrate (Figure 2). In addition, the species of PGE minerals including stannopalladinite, froodite, and merenskyite are minerals that are similar to those recovered in other polymetallic ores, such as the Sudbury basin deposits and Norilsk.