Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has released initial assay results from two mill feed stockpiles containing material from Red Eye Resources Ltd., following a profit-share agreement entered into earlier in August. The results indicate substantial gold and silver grades, which could have important implications for the company's processing capabilities and revenue streams.
Samples totaling 47.82 kilograms were taken from stockpiles estimated at approximately 1,200 tonnes and 300 tonnes. The overall weighted average grade from these samples was 2.83 grams per tonne (g/t) gold and 753.41 g/t silver. These grades are notably high, especially for silver, and suggest that the material could be economically viable for processing.
The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating the potential for processing the material at its Merritt Mill, located near Merritt, British Columbia. The mill is fully permitted and can process both gold and silver mill feed via gravity and flotation processes. Successful processing could generate significant revenue through the profit-share agreement with Red Eye Resources.
However, Nicola Mining cautioned that these results should not be considered representative of the entire stockpiles. This is because buried material was inaccessible during sampling, additional material was subsequently added to the larger pile, and the assay results showed high variability. Therefore, further testing and sampling will be necessary to better understand the true grade and tonnage of the stockpiles.
This development is significant for Nicola Mining as it continues to expand its milling operations and pursue strategic agreements with high-grade gold projects. The company's fully permitted mill provides a competitive advantage, allowing it to process material from various sources and generate cash flow. The positive assay results could also attract additional partners and investors, strengthening the company's position in the mining sector.
Nicola Mining 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 Highland Valley Copper, Canada's largest copper mine. Additionally, the company holds the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease spanning over 2,200 hectares.
For more detailed information on the assay results, interested parties can view the full press release at https://ibn.fm/JrBLd. Latest news and updates relating to Nicola Mining are available at https://ibn.fm/NICM.
