Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has reported 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 indicate potentially valuable mineralization that could be processed at Nicola's fully permitted mill near Merritt, British Columbia.
The announcement comes after Nicola entered into a Mining and Milling Profit Share Agreement with Red Eye Resources, a company focused on high-grade gold projects. Nicola's mill is equipped to handle both gold and silver feed through gravity and flotation processes, positioning the company to capitalize on such opportunities. The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating the economic feasibility of processing the stockpiled material at its Merritt Mill.
However, Nicola cautioned that these assay results should not be considered representative of the entire stockpiles. The buried material was inaccessible during sampling, additional material has since been added to the larger pile, and the assay results displayed high variability. This highlights the need for further evaluation before any definitive processing decisions are made.
Nicola Mining is a junior mining company that owns a 100% interest in a mill and tailings facility near Merritt, British Columbia. The company has signed profit-share agreements with high-grade gold projects and also owns the New Craigmont Project, a high-grade copper property covering 10,913 hectares adjacent to Highland Valley Copper, Canada's largest copper mine. Additionally, Nicola owns the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease spanning over 2,200 hectares.
The initial assay results from the Red Eye stockpiles are a positive indicator for Nicola's strategic plan to utilize its mill capacity and generate revenue through toll milling and profit-sharing arrangements. The high silver grades, in particular, could provide a significant boost to the company's financial outlook if the material proves economically viable to process.
Investors and stakeholders will be watching closely as Nicola conducts further tests and simulations to determine the best course of action. The company's ability to successfully process and recover gold and silver from these stockpiles could establish a new revenue stream and strengthen its position in the mining sector. For more information on Nicola Mining, visit the company's newsroom at https://ibn.fm/NICM.
