Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has reported initial assay results from two mill feed stockpiles comprising material from Red Eye Resources Ltd., with which Nicola entered into a profit-share agreement earlier in August. The samples, totaling 47.82 kilograms, were taken from stockpiles estimated at approximately 1,200 tonnes and 300 tonnes. The assays returned an overall weighted average grade of 2.83 grams per tonne gold and 753.41 grams per tonne silver, indicating the potential for valuable processing feed.
The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating the potential for processing the material at its Merritt Mill, which is fully permitted and can process both gold and silver mill feed via gravity and flotation processes. The mill is located near Merritt, British Columbia, and is a key asset for Nicola, which also holds a 100% interest in the New Craigmont Project, a high-grade copper property, and the Treasure Mountain Property.
While the assay results are encouraging, Nicola cautioned that they should not be considered representative of the entire stockpiles. Buried material was inaccessible during sampling, additional material was subsequently added to the larger pile, and the assay results showed high variability. These factors underscore the need for further evaluation to accurately assess the economic potential of the stockpiles.
The profit-share agreement with Red Eye Resources is part of Nicola's strategy to leverage its mill and tailings facility by processing high-grade material from other projects. This approach allows Nicola to generate revenue without the capital costs associated with developing new mines. The initial assays suggest that the stockpiles could provide a significant source of mill feed, potentially enhancing the company's production profile.
Investors and industry observers will be watching closely as Nicola advances its laboratory simulations and any subsequent processing decisions. Positive outcomes could strengthen Nicola's position in the junior mining sector, especially given the current market interest in precious metals. The company's ability to successfully process these stockpiles could also lead to additional agreements with other mining companies, further solidifying its role as a regional milling hub.
For more information on Nicola Mining and its projects, visit the company's newsroom at https://ibn.fm/NICM. The full press release can be viewed at https://ibn.fm/JrBLd.
