Unique Mill Demonstrates Its Value
In parallel with ongoing exploration drilling on copper targets around the historic Craigmont copper mine near Merritt in British Columbia, Nicola Mining (TSX.V: NIM, FSE: HLI, WKN: A14T7S) has produced the first concentrate for Talisker Resources (TSX: TSK) at its company-owned processing plant and shipped it for sale to Ocean Partners. The initial concentrate shipment comprised approximately 55 dry tons (64 wet tons) with an estimated grade of 97.75 grams of Gold per ton.
As Nicola reports, they succeeded in increasing concentrate grades during the milling process, primarily due to the recovery of free gold through gravity and tabling methods. On April 9, 2024, Nicola Mining announced that it had signed a milling agreement with Talisker for processing mill feed at Nicola’s mill near Merritt, British Columbia.
Nicola’s mill in Merritt is a unique milling and processing facility worth over CAD 30 million, built on a free, industrially zoned property that is 100% owned by the company. Nicola’s Merritt mill is the only facility in the province of British Columbia permitted to accept gold and silver mill feed from third parties across the entire province. The company has entered into an offtake agreement with Ocean Partners UK Limited to sell the concentrate on behalf of Nicola and Talisker.
Figure 1: Ready for shipment. Talisker Resources’ ore concentrate in Nicola Mining’s processing facility.
Nicola has already conducted drilling in the West Craigmont-WP and MARB-CAS targets as part of the 5,000 m 2024 drilling program. Drilling is currently underway in the Embayment Zone. Given the significance of the program, the company has announced that it will report on the progress of drilling and initial results in a timely manner.
Conclusion: It cannot be emphasized enough how exceptional Nicola Mining’s position is for an exploration company. The revenue from processing third-party concentrate, along with other income streams from the landfill business and the sale of gravel and concrete, offsets exploration costs. Unlike 99 percent of its competitors, Nicola Mining is therefore not compelled to go to the market for fresh capital. At the same time, the drilling around the historic Craigmont Mine has been extremely carefully prepared and offers the chance for a brand new copper discovery just a few kilometers away from Canada’s largest copper mine, Highland Valley. Against this backdrop, a discovery could lead to a significant revaluation of the company on the stock market. We continue to follow the story closely.
