Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has released initial assay results from two mill feed stockpiles at its Merritt Mill site, material that originated from Red Eye Resources Ltd. The company entered into a profit-share agreement with Red Eye in August, and these results are the first to emerge from that collaboration.
The assays were conducted on 47.82 kilograms of samples taken from stockpiles estimated at approximately 1,200 tonnes and 300 tonnes. The samples returned an overall weighted average grade of 2.83 grams per tonne (g/t) gold and 753.41 g/t silver. These grades are notably high, particularly for silver, and underscore the potential economic value of the material.
Nicola Mining emphasized that these results are preliminary and should not be considered representative of the entire stockpiles. The company noted that buried material was inaccessible during sampling, additional material was subsequently added to the larger pile, and the assay results showed high variability. As such, further testing and evaluation are necessary to fully understand the resource potential.
Moving forward, Nicola plans to conduct laboratory simulations aimed at maximizing recovery rates and evaluating the feasibility of processing the material at its wholly owned Merritt Mill. The mill, located near Merritt, British Columbia, is fully permitted and can process both gold and silver mill feed through gravity and flotation processes. This capability positions Nicola to potentially monetize the stockpiled material efficiently if the simulations prove successful.
The announcement is significant for Nicola Mining as it seeks to generate revenue through its milling and profit-share agreements. The company has been actively pursuing partnerships with high-grade gold projects, and the Red Eye agreement is a key component of that strategy. The high silver grades, in particular, could provide a substantial boost to the company’s financial performance if recoverable at economic levels.
Nicola also holds 100% ownership of the New Craigmont Project, a high-grade copper property spanning 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 across more than 2,200 hectares.
Investors and stakeholders will be watching closely as Nicola progresses with its laboratory simulations and any subsequent processing decisions. The company’s ability to turn these stockpiles into a revenue stream could set a precedent for future profit-share arrangements and enhance its standing in the junior mining sector.
For more details on the full press release, visit https://ibn.fm/JrBLd. The latest news and updates regarding Nicola Mining can be found in the company’s newsroom at https://ibn.fm/NICM.
