Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has reported initial assay results from two mill feed stockpiles sourced from Red Eye Resources Ltd., a company with which Nicola entered into a profit-share agreement in August. The samples, totaling 47.82 kilograms, returned an overall weighted average grade of 2.83 grams per tonne gold and 753.41 grams per tonne silver. The stockpiles are estimated at approximately 1,200 tonnes and 300 tonnes, and these grades are notably high, especially for silver, which could significantly impact the economic viability of processing this material.
The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating the feasibility of processing the material at its wholly owned Merritt Mill, located near Merritt, British Columbia. The mill is fully permitted and capable of processing gold and silver feed through gravity and flotation processes. This initiative aligns with Nicola’s strategy of leveraging its mill and tailings facility to generate revenue through profit-share agreements with high-grade projects.
However, Nicola cautioned that the assay results should not be considered representative of the entire stockpiles due to several factors: buried material was inaccessible during sampling, additional material was subsequently added to the larger pile, and the assay results showed high variability. This suggests that the actual grade of the stockpiles could differ, and further testing is required to confirm the resource potential.
The announcement is important for Nicola Mining as it provides initial evidence of potentially valuable feed for its mill, which could lead to increased throughput and revenue. The high silver grade, in particular, is noteworthy given the current market prices for precious metals. If subsequent tests confirm the viability, the company could see a positive impact on its financial performance.
Nicola Mining also holds a 100% interest in the New Craigmont Project, a high-grade copper property covering 10,913 hectares along the southern end of the Guichon Batholith, adjacent to Highland Valley Copper, Canada’s largest copper mine. Additionally, the company owns the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease spanning over 2,200 hectares.
The results come as part of a broader effort by Nicola to maximize the utilization of its mill and establish itself as a key player in the British Columbia mining sector. For more details on the assay results, interested parties can view the full press release at https://ibn.fm/JrBLd. For the latest news and updates on Nicola Mining, visit their newsroom at https://ibn.fm/NICM.
