Nicola Mining reviews company, looks ahead

Over the past year, Nicola Mining Inc. [NIM-TSXV; HUSIF-OTC] released several news releases providing updates on its New Craigmont copper project, Treasure Mountain silver project and Dominion gold project, as well as operations at its Merritt Mill gold and silver milling facility near Merritt, British Columbia.

While the diversity of news may cause confusion as to the company’s near, mid, and long term goals, our long term goals remain the same and our near term goals reflect opportunistic flexibility that supports our vision. development to become a self-funded exploration and resource company.

The Mining Journal recently published its Copper Outlook Report that echoes Wall Street’s consensus that under investment/underdevelopment bodes well for the metal and that by 2030, the market observers expect to see a 5.0 million tonne-per-year shortfall of the green metal. There are several reasons core to management’s believe that New Craigmont is our crown asset.

The 100%-owned New Craigmont copper project is more than a brownfield exploration project; it maintains Mine Permit M-68, is adjacent to the largest copper mine in Canada, is the site of one of North America’s highest grade historic copper mines, and is largely unexplored. The mine closed in 1982 due to low copper prices, and exploration was limited to the Kingsvale capping that made it difficult to conduct IP surveys, as well as for drilling.

One may ask: If Craigmont is the crown asset, why hasn’t the company invested more over the past two years on exploration? In a January 18, 2021 news release, Nicola Mining announced 2021 Exploration Objectives at the New Craigmont Copper Project and outlined both the 2021 exploration objectives for the New Craigmont Project and that the company had filed for a multi-year area-based (MYAB) exploration permit to allow Nicola to move forward on a five-year exploration plan.

In a January 20, 2022 news release, Nicola contracted Geotech to perform a 998 line-km ZTEM electromagnetic survey across the entirety of New Craigmont. The company anticipates receipt of MYAB followed by ZTEM Survey results will expand known exploration targets, as well as discover new targets for diamond drilling on both copper skarn and copper porphyry anomalies.

Like New Craigmont, the 100%-owned Treasure Mountain property along the Coquihalla Highway, southern B.C. is a permitted mine site and holds Mine Permit M-239, which allows the company to mine up to 60,000 tonnes/year of silver/lead/zinc mill feed. The high-grade silver project maintains four fully developed portals, an in-situ NI 43-101 compliant resource estimate between and exploration potential at the MB Zone located approximately 1.5 km from the Treasure Mountain mine. The MB Zone has never been drilled but has produced very high grade soil and grab samples that include Sample 2100152 that returned 813 g/t silver and 0.518 g/t gold, 19% zinc and 4.66% copper.

Nicola sees the importance of receiving a MYAB to garner site-wide exploration flexibility and is currently in process of making its formal submission.

The company acquired the 900-acre land parcel comprising the Merritt Mill Site and has invested over $30 million to construct a modern processing and fully-lined tailings facility, which is B.C.’s only permitted mill capable of receiving gold and silver mill feed from throughout the province. On February 24, 2022, Nicola shipped its largest shipment of gold silver concentrate, highlighting continued site cash flow; however, cash flow is not only associated with milling activities, but from a cadre of sources.

Nicola’s Merritt Mill Site is a key site to Nicola Clean Power to accept fly and bottom ash for reclamation purposes. Nicola supports construction of the Trans Mountain Expansion Project (TMEP) in Spreads 4B, 5A, 5B, 6 and 7A by receiving hydrovac and cover soils from worksites in these locations. The Merritt Mill Site supports TMEP reclamation in these same areas.

The Craigmont Site also is permitted to receive certain remediated soils. On March 14, 2022, the company signed a Rock and Gravel Extraction and Preferential Engagement Agreement with an affiliate company of the Lower Nicola Indian Band to provide rock and gravel for BC infrastructure projects.

Finally, the company is to repay as much as possible of the principal amount and interest thereon owing under Nicola’s convertible debentures, which become due in November 2022.