Nicola aims to outline new drill targets at New Craigmont, B.C.
Nicola Mining Inc. [NIM-TSXV] has arranged a non-brokered private placement financing with proceeds earmarked for further exploration aimed at outlining new drill targets on the company’s wholly-owned New Craigmont project, which is located near Merritt, B.C., adjacent to Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) Highland Valley Copper, Canada’s largest copper mine.
The private placement consists of up to 5.5 million flow-through common shares priced at 23 cents per FT share. It is expected to generate gross proceeds of $1.26 million.
In November 2015, the company became the first group in decades to consolidate ownership of the New Craigmont Project. The 10,000-hectare property is located in the Highland Valley porphyry district and contains the former Craigmont Mine, which produced 34 million tonnes, grading 1.3% copper between 1961 and 1982 from underground and open pit operations. It ranked as one of North America’s highest grade copper mines.
Nicola Mining maintains a 100%-owned mill and tailings facility located near Merritt, B.C. It has signed mining and milling profit-sharing agreements with high grade gold projects.
In a February 21, 2024 news release, Nicola said it had contacted Dias Geophysical to conduct a 3D Polarization survey at New Craigmont Copper project.
The IP Survey, targeted for late April/early May, will encompass two key target areas and cover 4.5 square kilometers. They include the MARB-CAS Zone located immediately west of the Embayment Zone, as well as the West Craigmont Zone. The latter hosts the WP MINFILE showing in the west portion of New Craigmont.
In a previous survey back in 2017 and 2018, the company said the results and subsequent exploration drilling saw a significant correlation between IP data and high-grade copper intercepts at the Embayment Zone.
The (2024) IP Survey aims to generate drilling targets west of the historic Craigmont Mine and Embayment zones. Ore from Craigmont Mines historic mining operations focused on skarn mineralization characterized by chalcopyrite and magnetite hosted in garnet-epidote-actinolite-quartz skarn within the Nicola Group volcanic clastic rocks and carbonate rich sedimentary rocks. The company’s 2016 drilling exploration program, which discovered the Embayment Zone northwest of the historic Craigmont Mine, also has similar mineralization feature.
“We are extremely excited about our 2024 exploration plans, which commence with the IP Survey,’’ said Nicola Mining CEO Peter Espig. “Over the past two years, independent exploration techniques, which include mapping and the ZTEM survey, significantly correlate with previously completed IP surveys and drilling,’’ he said. “When considering that recently mapped mineralization outcroppings correspond significantly with observed anomalies, we are confident that the to-be-conducted IP Survey over MARB-CAS and West Craigmont zones will yield solid drill targets. Once the results of the IP Survey have been analyzed, we expect to begin exploration drilling.’’
On Wednesday, Nicola Mining shares were priced at 23 cents. The shares are currently trading in a 52-week range of 44 cents and 17 cents.