Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) has released the results of an independent underground inspection and factual assessment of its Treasure Mountain Silver Mine in British Columbia. The evaluation, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, found the mine in generally better condition than anticipated after approximately 13 years of inactivity. This positive finding could potentially expedite the timeline for recommencing mining activities at the site, which the company is targeting for 2027.
The assessment revealed that both principal portals remain accessible, significant portions of the underground development remain open, natural ventilation is functioning, and much of the historical infrastructure remains in place. Notably, no conditions were observed that would prevent the project from advancing to the next stage of evaluation. The report also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could provide additional exploration opportunities.
Peter Espig, CEO of Nicola Mining, expressed optimism about the findings. "The existing underground development, combined with Nicola's permitted Merritt milling infrastructure, could provide a disciplined and capital-efficient pathway toward renewed silver production," he said. The company now plans to advance a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping. These efforts are expected to support subsequent mine planning, ventilation design, rehabilitation, and the recommencement of mineral extraction.
The Treasure Mountain Property, which Nicola owns 100% of, includes 30 mineral claims and a mineral lease spanning over 2,200 hectares. The company also maintains a fully permitted mill and tailings facility near Merritt, British Columbia, capable of processing both gold and silver mill feed via gravity and flotation processes. This infrastructure, combined with the mine's existing development, could significantly reduce the capital expenditure required to restart operations.
The announcement comes as part of Nicola Mining's broader strategy to leverage its existing assets. The company also owns 100% of the New Craigmont Project, a high-grade copper property covering 10,913 hectares along the southern end of the Guichon Batholith, adjacent to Canada's largest copper mine, Highland Valley Copper. However, the focus remains on Treasure Mountain and the potential for renewed silver production in the coming years.
The positive condition of the mine is a promising indicator for the project's viability. With the assessment complete, Nicola Mining is moving forward with the next phases of evaluation, which will be crucial in determining the exact timeline and cost of the restart. The company's ability to potentially expedite the process could have significant implications for the silver market, as increased supply from a restart could influence prices and supply dynamics.
For investors and industry observers, this development underscores the potential of the Treasure Mountain mine to contribute to Nicola Mining's growth. As the company continues to evaluate and rehabilitate the site, further updates are expected to provide clarity on the project's progress and future silver production capabilities.
