Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has announced initial assay results from two mill feed stockpiles containing material from Red Eye Resources Ltd., following a profit-share agreement signed in August. The sampled material, 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.
The company plans to conduct laboratory simulations to maximize recovery and evaluate the feasibility of processing the material at its wholly owned Merritt Mill in British Columbia. This mill is fully permitted and can process both gold and silver feed using gravity and flotation processes, positioning Nicola to potentially monetize these stockpiles efficiently.
However, Nicola cautioned that these assay results should not be considered representative of the entire stockpiles. Buried material was inaccessible during sampling, additional material has since been added to the larger pile, and the assays showed high variability. This suggests that the true grade of the stockpiles could differ significantly from the initial results.
The announcement is significant for Nicola Mining as it seeks to expand its milling operations and capitalize on its profit-share agreements. The company already has agreements with high-grade gold projects and owns the New Craigmont Project, a high-grade copper property spanning 10,913 hectares adjacent to Highland Valley Copper, Canada’s largest copper mine. Additionally, Nicola holds 100% of the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease covering over 2,200 hectares.
For the mining industry, these results underscore the potential value in reprocessing stockpiled material, which can offer a lower-risk opportunity compared to traditional mining. The high silver grade is particularly noteworthy, as silver prices have been volatile but remain an important industrial metal. If the stockpiles prove to contain economically viable grades, this could set a precedent for other mining companies to reassess their own waste or stockpiled materials.
The next steps involve laboratory simulations to determine optimal recovery methods. If successful, Nicola could begin processing the material at its Merritt Mill, generating revenue under the profit-share agreement with Red Eye Resources. This would not only provide a new revenue stream for Nicola but also demonstrate the viability of its milling facility for external partners.
Investors and stakeholders will be watching closely for further updates on the laboratory results and any subsequent processing decisions. The variability in assay results highlights the need for careful evaluation before committing to full-scale processing.
For more information, visit the full press release at https://ibn.fm/JrBLd.
