Nicola Mining Inc.

TSXV Exchange | Jul 9, 2020, 1:13 PM EDT | Real-time price

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Nicola Mining Prepares to Recommence Milling Operations

Vancouver, British Columbia--(Newsfile Corp. - October 19, 2018) - Nicola Mining Inc. (TSXV: NIM) (the "Company" or "Nicola") is pleased to announce that it is preparing to recommence milling operations under its long-term Mining and Milling Profit Share Agreement ("LT Agreement") with Gavin Mines Inc. ("Gavin Mines"). The Company had hoped to recommence operations in August but there were delays with mine production. Pursuant to the LT Agreement Gavin Mines plans to ship up to 40,000 tonnes of mill feed per year to the Company's 200 tonne per day mill facility (the "Mill"), located 14 kilometers from Merritt, British Columbia.

On April 2016, the Company announced that it had received an amendment to its mine permit, M-68, allowing it to process third party material. Because the Mill is centrally located in British Columbia, maintains a fully-lined tailings facility and is constructed on a wholly-owned freehold mine site, it can serve as a project facilitator / consolidator for BC-based small-to-mid sized mine projects.

Expected grades of the Gavin Mines project are highlighted in the Linden Mining and Consulting's 2012 Update Report, the Mineral Reserve tonnes was increased to 135,131 tonnes. Average grades using an external cutoff grade of 7.9 grams per tonne gold and an internal cutoff grade of 4.7 grams gold are as follows:

  • Gold: 11.2 grams Au per tonne, and;
  • Silver: 100.8 grams Ag per tonne

The LT Agreement is expected to initially fill approximately 50% of the Mill's capacity, which is still able to process material from other sites or accept additional material from Gavin Mines, which has a 75,000 tonne per year Small Mines Permit. Once the mill recommences operations it is expected to operate year-round.

Peter Espig, Chief Executive Officer commented, "Recommencing milling operations has been a frustrating process. While we understand that projects get delayed but there is a greater sense of urgency for smaller producers than there is for majors. Gavin has done a commendable job to move its project to this stage. The Company will continue to provide clarity on operations, as well as its 2018 Exploration Program, throughout the remaining part of 2018."

About Nicola Mining

Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill can process both gold and silver mill feed via gravity and flotation processes. The Company also owns 100% of Treasure Mountain, a high-grade silver property, and an active gravel pit that is located adjacent to its milling operations.

About New Craigmont

The New Craigmont Project (the "Property") is a wholly-owned copper property with an active mine permit (M-68), located within the world-class Highland Valley porphyry district. It benefits from excellent infrastructure. The Property is at the corner intersection of the Nicola and Guichon batholiths, of which the latter is the precursor to mineralization at Highland Valley. In November of 2015, Nicola became the first group in decades to consolidate ownership of the Property and has been actively conducting mineral exploration since.

There are currently no mineral resource estimates on the Property. Historical "non-NI 43-101" resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as Body No. 3 containing a historic estimate of 1,290,000 tons (1,170,268 metric tonnes) of copper grading 1.53% copper. * This estimate assumes a 0.7% copper cut-off and a 20-foot mining width between drill sections 6565E and 8015E. The material in Body No. 3 contains mineralization primarily in silicate-rich rocks.

Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Ltd., a rough calculation of +60,000,000 pounds (1.6 million short tons or 1.45 metric tonnes) of +1.5% copper from an original ore estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79% copper left behind in the sub-level cave. The material is from the previously mined out No.1 Body and No.2 Body.

On behalf of the Board of Directors

"Peter Espig"
Peter Espig
CEO & Director

For additional information contact:

Peter Espig
Telephone: (778) 385-1213

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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