Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) has announced the results of an independent underground inspection and factual assessment of its Treasure Mountain Silver Mine in British Columbia, revealing that the mine is in better-than-anticipated condition after approximately 13 years of inactivity. The assessment, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, found 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. No conditions were observed that would prevent the project from advancing to the next stage of evaluation.
The positive findings could potentially expedite the timeline for recommencing mining activities, as the company evaluates reopening the mine in 2027. The assessment also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could provide exploration opportunities. Nicola plans to advance a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping, with the work expected to support subsequent mine planning, ventilation design, rehabilitation, and the recommencement of mineral extraction.
CEO Peter Espig highlighted the strategic advantage of the existing underground development combined with Nicola's permitted Merritt milling infrastructure, stating that this could provide a disciplined and capital-efficient pathway toward renewed silver production. The company's fully permitted mill can process both gold and silver mill feed via gravity and flotation processes, and Nicola maintains a 100% owned mill and tailings facility near Merritt, British Columbia.
The Treasure Mountain Property includes 30 mineral claims and a mineral lease spanning an area exceeding 2,200 hectares. Nicola also owns 100% of the New Craigmont Project, a high-grade copper property covering 10,913 hectares adjacent to Highland Valley Copper, Canada's largest copper mine. The company has signed Mining and Milling Profit Share Agreements with high-grade gold projects, further diversifying its portfolio.
The announcement underscores the potential for Nicola Mining to restart silver production in a cost-effective manner, leveraging existing infrastructure and favorable underground conditions. The findings from the McElhanney assessment suggest that the path to production may be less capital-intensive than originally anticipated, which could improve the project's economics and accelerate the timeline for bringing the mine back into operation. For investors, this development signals a promising outlook for Nicola Mining's silver assets and its ability to execute on its restart plans.
For more information, visit the full press release at https://ibn.fm/HdSg9 or the company's newsroom at https://ibn.fm/NICM.
