Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has released initial assay results from two mill feed stockpiles containing material from Red Eye Resources Ltd., following a profit-share agreement signed earlier in August. The samples, totaling 47.82 kilograms from stockpiles estimated at approximately 1,200 tonnes and 300 tonnes, returned an overall weighted average grade of 2.83 grams per tonne gold and 753.41 grams per tonne silver. These results are significant, as they suggest the potential for economically viable processing of the stockpiled material at Nicola's wholly owned Merritt Mill.
The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating the feasibility of processing the material at its fully permitted mill, which can handle both gold and silver feed via gravity and flotation processes. However, Nicola cautioned that these results should not be considered representative of the entire stockpiles. Buried material was inaccessible, additional material was subsequently added to the larger pile, and assay results showed high variability. This underscores the need for further testing and analysis before making any production decisions.
The announcement is important for Nicola Mining as it continues to expand its milling operations and capitalizes on its infrastructure. The company has signed Mining and Milling Profit Share Agreements with high-grade gold projects, positioning it as a key player in the region. Nicola also owns 100% of the New Craigmont Project, a high-grade copper property adjacent to Highland Valley Copper, Canada's largest copper mine, and the Treasure Mountain Property, spanning over 2,200 hectares.
Investors and stakeholders will be watching closely as Nicola proceeds with the simulations and further evaluation. The initial assays provide a positive signal, but the variability noted highlights the need for careful assessment. For more details, the full press release is available at https://ibn.fm/JrBLd.
