Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has announced 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, returned an overall weighted average grade of 2.83 grams per tonne gold and 753.41 grams per tonne silver. The stockpiles are estimated at approximately 1,200 tonnes and 300 tonnes, respectively.
The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating potential processing at its Merritt Mill, which is fully permitted for both gold and silver mill feed via gravity and flotation processes. However, Nicola cautioned that the results should not be considered representative of the entire stockpiles due to several factors: buried material was inaccessible, additional material was subsequently added to the larger pile, and assay results showed high variability.
This development is significant for the mining industry as it demonstrates the potential value of processing stockpiled material, which may have been overlooked or considered uneconomical. For Nicola Mining, this could represent a low-capex opportunity to generate cash flow by processing existing material through its mill, which is located near Merritt, British Columbia. The profit-share agreement with Red Eye Resources suggests a strategic partnership that could provide a steady feed for the mill, potentially reducing operational risks.
The high silver grade, in particular, is notable given the current market interest in silver for both industrial and investment purposes. If the laboratory simulations confirm the economic viability of processing these stockpiles, it could open the door for similar agreements with other junior miners who have stockpiled material but lack processing facilities. This could have broader implications for the sector, as it might encourage more efficient use of existing resources and reduce environmental impact by reprocessing waste or stockpiled ore.
Investors should note that these are initial results and further testing is required to determine the true potential. The company’s caution highlights the inherent uncertainties in mining and metallurgical processes. Nevertheless, the announcement provides a positive signal about the potential of the Red Eye material and the strategic direction of Nicola Mining.
Nicola Mining is a junior mining company that owns a 100% mill and tailings facility near Merritt, British Columbia. It also owns the New Craigmont Project, a high-grade copper property adjacent to Canada’s largest copper mine, and the Treasure Mountain Property, which includes 30 mineral claims. For more information on Nicola Mining, visit the company’s newsroom at https://ibn.fm/NICM.
The full press release can be viewed at https://ibn.fm/JrBLd.
