Power Metallic Mines Inc. (TSXV: PNPN) (OTCBB: PNPNF) provided preliminary metallurgical results performed by SGS Canada Ltd1 at its laboratories based in Quebec City, QC, and Lakefield, ON, from representative samples of Lion zone mineralization. An initial Lock Cycle Test returned a sulphide concentrate grading 25.8% Copper containing very high metal recoveries of Copper (98.9%), Palladium (93.9%), Platinum (96.8%), Gold (85.0%) and Silver (88.9%), exceeding Power Metallics most optimistic estimates for recovery prior to this test work.
As previously reported (initiation of metallurgical work news release October 16, 2025) the Cu mineralization at Lion is contained within coarse grained chalcopyrite and cubanite and Cu was expected to respond well to conventional sulphide concentration methods. These initial metallurgical tests were designed to determine the recovery potential of the PGEs, Au, Ag, and Ni.
The Lion deposit has two zones of mineralization defined by drilling, consisting of a High-Grade zone (HG) and a Low-grade Zone (LG). As reported on October 16, 2025, Power Metallic compiled a series of drill core reject material from the Lion deposit spatially representative of the known mineralization across strike and down plunge within the deposit (Figure 1). Three composites were prepared, HG (103 samples from 15 drill holes); LG (99 samples from 10 drill holes); and a Blended composite based on modelled volumes for Lion (Approx. 50/50 ratio).
Initial sulphide flotation concentration tests by SGS showed similar recovery characteristics for all 3 composites, and a decision was made by SGS to carry out a Locked Cycle Test (LCT) on the Blended Composite as representative of run-of-mine feed for conventional sulphide flotation. The LCT test is a laboratory scale flowsheet of a potential future mill circuit for the Lion deposit.
Results of the LCT showed abnormally high recovery (Table 1) of Cu, PGEs, Ag, and Au, with very good recovery of Ni. SGS’s comment on the LCT stated:
“The test work, performed by SGS Canada Inc. at its Quebec Metallurgical Laboratory, demonstrates encouraging preliminary flotation performance and supports the potential suitability of the mineralization for a conventional flotation flowsheet.
The mineralization demonstrated a strong flotation response, with copper rougher recoveries ranging from 98–99%. Cleaner flotation upgraded the material to approximately 25% Cu, while precious metals consistently reported to the concentrate. Locked-cycle flotation testing produced a high-grade concentrate containing 25.8% Cu, 1.2% Ni, 4.83 g/t Au, 41.4 g/t Pd, 23.4 g/t Pt, and 159 g/t Ag, with robust recoveries for Cu (98.9%), Pd (93.9%), Pt (96.8%), and Ag (88.9%).
These results suggest potential opportunities for the transformation of the concentrate into value-added products, including advanced materials for various economic sectors such as battery and energy storage, electrification, clean energy, and advanced manufacturing.”
About SGS: SGS is the world’s leading testing, inspection and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 99,500 employees, SGS operates a network of over 2,500 labs and business facilities combining the precision and accuracy that define Swiss companies to help organizations achieve the highest standards of quality, compliance and sustainability.
Figure 1 Spatial distribution of the drill hole intercepts used in the Metallurgical Testing (CNW Group/Power Metallic Mines Inc.)
Table 1 Locked-Cycle Test on Lion Zone Blended Composite Feed Grade, Concentrate Grade, and Recovery Summary
The abnormally high recoveries in this initial LCT confirms previous statements made by Power Metallic, based on mineralogical studies of metal deportment, that the Lion zone would be amenable to conventional sulphide concentration.
These results exceed the expectations of Power Metallic’s technical team. Previous reporting by Power Metallic on CuEqRec percent of in-situ intersection grades had calculated an 80% recovery of all metals. These results indicate those CuEqRec percent values greatly underestimated recoveries. Of added importance statements by SGS (see quote above) on the potential for added value processing open the door to even greater potential returns from treatment of Lion zone mineralization.
Table 2 – Impact of Old Recovery assumptions vs Met Recovery2,3
Previously Used (Old) Copper Equivalent Rec Calculation (CuEqRec2)
Old CuEqRec represented CuEq calculated based on the following metal prices (USD): 2,360.15 $/oz Au, 27.98 $/oz Ag, 1,215.00 $/oz Pd, 1000.00 $/oz Pt, 4.00 $/lb Cu, 10.00 $/lb Ni and 22.50 $/lb Co., and a recovery grade of 80% for all commodities, consistent with comparable peers.
Current Copper Equivalent Rec Calculation (CuEqRec3)
Current CuEqRec will be calculated based on the following metal prices and recoveries (USD): 2,360.15 $/oz Au @ 85% Rec; 27.98 $/oz Ag @ 88.9% Rec; 1,215 $/oz Pd @ 93.9% Rec; 1,000 $/oz Pt @ 96.8% Rec; 4.00 $/lb Cu @ 98.9% Rec; 10.00 $/lb Ni @ 77.1% Rec, based on recoveries consistent with initial metallurgical testing.
Table 2 above provides the change in recovered metal grade from head grade ore based on the metallurgy result achieved by SGS’s LCT. The Met Recovered CuEQRec shows a 18.2% improvement when compared to the Old Recovered CuEQRec. Using our currently assumed prices for commodities we see CuEQRec contribution from base metals (copper, nickel) at 49% and 51% for precious metals (platinum, palladium, gold, silver). Go forward in future assay results Power Metallic will use the SGS’s LCT recovery rates for copper equivalent assumptions.
Moving forward, Power Metallic will complete these initial conventional concentration test results and will provide a final report once this work is completed. Power Metallic is now examining the options for a Phase 2 study to investigate the creation of “value-added products” as suggested by SGS.
Qualified Person
Joseph Campbell, P.Geo, VP Exploration at Power Metallic, is the qualified person who has reviewed and approved the technical disclosure contained in this news release.
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