Just recently, the Canadian Nicola Mining (WKN A3D3LF / TSXV NIM) officially commenced processing gold ore at its mill near Merritt, British Columbia, the province’s only such facility permitted to process third-party gold and silver ore. The material currently being processed comes from a collaboration with Talisker Resources. However, it is not expected to remain the sole source for the facility, which analysts estimate will generate revenues of $43.9 million and an EBITDA of $8.7 million this year. And as the company now reports, there has been encouraging progress in this regard!
According to Nicola Mining, the extraction of a bulk sample of up to 10,000 tonnes of gold and silver mineralization has already begun at the high-grade Dominion Creek project, in which the company holds a 75% economic interest. The company had already received the necessary permit from the British Columbia Ministry of Mining and Critical Minerals in March. The project is located approximately 43 kilometers northeast of the city of Wells and about 110 kilometers east-southeast of Prince George.
Nicola Mining Recovers High-Grade Gold and Silver Mineralization at Dominion Creek
As early as late 2020, Nicola Mining had announced the results of a 9.7-kilogram surface sample, which showed 62.1 grams of gold and 320 grams of silver per tonne! Additionally, the mineralization also contained 23.4% lead and 12.4% zinc. Furthermore, the company had already taken grab samples in 2020 from locations where the ore vein outcropped – and had also shown high gold and silver values there.
Analysts expect the Merritt Mill to reach its currently permitted capacity of 200 tonnes per day in the third quarter of this year. Given that Nicola will receive ore from Talisker, Dominion Creek, and in the near future also from the cooperation with Blue Lagoon Metals, it should then be well-positioned to utilize its capacities.
Peter Espig, CEO of Nicola Mining, stated: “We are very pleased with the start of production at our Dominion project, which underscores the strength of our mill in terms of permits and location as a destination for small gold production projects in British Columbia. The extraction of the bulk sample from Dominion is the culmination of years of effort, for which our employees and our partner High Range Exploration deserve great credit. We believe that British Columbia is experiencing a renaissance now that small, high-grade projects are receiving support from First Nations, communities, and ministries.”
