Investment Highlights
- Diversified portfolio in British Columbia: Fully permitted production and processing facilities and projects in copper, silver, zinc and gold.
- Flagship New Craigmont Copper Project: Historical production of over 900 million pounds of copper, adjacent to Teck’s Highland Valley Copper Mine.
- Revenue-generating infrastructure: Own mill (200 t/day) and approved tailings facility near Merritt, BC; additional revenues from sand, gravel and concrete production.
- Strong partnerships: Cooperation with First Nations and the University of British Columbia (UBC) to explore porphyry systems.
- Experienced management: Leadership team with a proven track record in mining, finance and restructuring.
- Solid financial foundation: Ongoing cash flows from processing and aggregate business secure exploration and growth.
Company & Strategy
Nicola Mining Inc. (TSX.V: NIM | FSE: HLIA | OTCQB: HUSIF) is a Canadian resource company based in British Columbia. The company owns a fully permitted processing facility (Merritt Mill) and a Tailings Facility worth over CAD 35 million. Nicola combines operational revenue streams with a high-quality portfolio of exploration and production projects in strategic mining areas of the province.
The corporate strategy focuses on three core objectives:
- Value creation through exploration and reactivation of historical deposits (especially copper and silver),
- Monetization of existing assets through contract processing and investments in gold projects,
- Strengthening the operational base through sustainable infrastructure projects in partnership with local communities and First Nations.
Market Environment
Copper and Critical Metals in British Columbia
British Columbia is one of Canada’s most important mining provinces, especially for copper, molybdenum, gold and silver. The region around Merritt lies within the Quesnel Trough, one of the most productive copper belts in North America. In the immediate vicinity of Nicola’s New Craigmont Copper Project is Teck Resources’ Highland Valley Copper Mine, Canada’s largest copper producer.
The long-term outlook for copper remains positive: increasing electrification, the expansion of power grids and growing demand from electromobility support structurally higher prices. Nicola Mining is clearly positioning itself in this future market with its projects and existing infrastructure.
Precious metals and industrial minerals also contribute to strategic diversification. The Treasure Mountain property offers exploration potential for high-grade silver-lead-zinc deposits, while Dominion Creek represents a high-growth gold project.
Project Portfolio
New Craigmont Copper Project
Location: 14 km northwest of Merritt, 190 km northeast of Vancouver
Area: over 10,800 ha (22 Claims, 10 Mineral Leases)
(Fig. 1: Location of the New Craigmont project in British Columbia)
The New Craigmont Project is Nicola’s flagship and lies in the heart of the productive Guichon Batholith, the same geological unit that hosts Highland Valley Copper. The property includes the historical Craigmont mine site, which from 1961 to 1982 mined approximately 36.75 million tonnes of ore averaging 1.3% copper – a total of almost 900 million pounds of copper.
After consolidating all property rights in 2015, Nicola established a systematic exploration strategy. Since then, over 18,000 m of diamond drilling, 1,869 m of RC drilling, comprehensive geological mapping and several geophysical campaigns (IP, ZTEM, magnetics) have been carried out.
Geology and Mineralization:
The project lies at the transition between the Guichon Creek Batholith and the volcanic units of the Nicola Group – a geological constellation that is ideal for copper skarn and porphyry systems. Historical and current drilling demonstrate powerful mineralization zones:
- Embayment Zone: 100.6 m with 1.33% Cu (drill hole NC-2018-03)
- Craigmont Central: 76.6 m with 1.05% Cu (CC-18-02)
- MARB-CAS Zone (2024): 52.9 m with 1.03% Cu (NC-24-002)
In addition to expanding known skarn zones, current exploration focuses on identifying a porphyry copper system as a potential source of mineralization. This hypothesis is being scientifically investigated together with the UBC Mineral Deposit Research Unit (MDRU).
Resources and Sorting Technology:
A study published according to NI 43-101 (2020) shows an inferred resource of 18.7 million t with 0.13% Cu in the historical dumps. Tests with X-Ray Transmission (XRT) sorting showed potential for significant upgrading of the copper content as well as additional revenues from magnetite.
Infrastructure Advantages:
The project benefits from existing power supply, road access and close proximity to its own mill near Merritt. This logistics significantly reduces exploration and development costs.
(Fig. 2: Geological map of the Craigmont area)
Treasure Mountain Silver Project
Location: 29 km northeast of Hope, BC
Area: 2,200+ ha (31 Tenures)
Treasure Mountain is a polymetallic deposit with historical silver, lead and zinc production. The deposit lies in the northwestern continuation of the Cascade Mountains, in a tectonically active zone of volcanic and sedimentary rocks.
The main vein (“C-Vein”) follows the Treasure Mountain fault and contains sulfide-rich mineralization with sphalerite, galena, tetrahedrite and boulangerite. Historical underground work included four levels with 9,000 feet of tunnels and 10,000 feet of drilling.
Historical Production:
As early as the 1930s, around 4,000 tonnes of ore were mined and 39,558 ounces of silver, 379,532 pounds of lead and 88,455 pounds of zinc were extracted. Later exploration campaigns (1980s) by Huldra Silver developed additional high-grade veins.
Resource Estimate (2009):
- Indicated: 33,000 t with 24.2 oz/t Ag, 4.16% Pb, 3.8% Zn
- Inferred: 120,000 t with 27.0 oz/t Ag, 2.79% Pb, 4.36% Zn
The project has a valid multi-year exploration permit (MYAB Permit, June 2025) and remains a significant secondary project with clearly defined upside potential.
Dominion Creek Gold Project
Participation: 75% economic interest
Location: approx. 43 km northeast of Wells, BC
(Fig. 3: Location of the Dominion Creek project in central British Columbia)
Dominion Creek lies along the Isaac Lake Fault, which is known for its gold and base metal deposits. Nicola holds a 50% land interest and 50% participation in the Mining & Milling Profit Share. The project has a bulk sample permit for up to 10,000 t of ore, the mining of which began in 2025. The material is processed in the Merritt Mill.
The project complements Nicola’s cash flow-oriented strategy and leverages synergies between exploration and processing operations.
Merritt Mill & Tailings Facility
Nicola operates a fully permitted 200 t/day mill with modern gravity and flotation circuits. The facility was built with over CAD 23 million and is located on an CAD 8 million property near Merritt. The adjacent tailings facility is fully lined and designed for sustainable operation.
The mill serves both its own ore processing and external partners as part of mining and milling profit share agreements, for example with Talisker Resources and Blue Lagoon Resources. Long-term gold and silver concentrate production was started in 2025.
Sand, Gravel and Concrete Production
In partnership with Lower Nicola Site Services (LNSS), the company operates a fully permitted gravel quarry (100,000 t/year) and a stone quarry (1,500 t/day) as well as a new concrete mixing plant.
These activities provide short-term revenues and support the financing of exploration and development.
There are also supply contracts with Teck Resources’ Highland Valley Copper Expansion Project and with the Ministry of Transportation, which could secure operations for decades to come.
Outlook
Nicola Mining is in a strong operational position to make substantial progress in the coming years:
- Exploration 2025: Continuation of the drilling program on New Craigmont with a focus on MARB-CAS and WP zones, where geophysical anomalies indicate porphyry potential.
- Production expansion: Continuation of gold and silver processing with partner projects; possible expansion of mill capacity.
- Infrastructure growth: Long-term revenues from gravel, cement and aggregates in cooperation with LNSS.
- Strategic research: Deepening cooperation with the UBC MDRU for porphyry modeling.
These activities strengthen the company’s value without relying on high external capital inflows.
Management
Peter Espig – President, CEO & Director
Former Vice President at Goldman Sachs Japan, structured over USD 2 billion in private equity and pre-IPO transactions. CEO of Nicola Mining since 2013 and responsible for successful restructuring and strategic realignment.
Will Whitty – VP Exploration
Geologist with over 15 years of experience in porphyry and skarn systems, previously worked at Freeport-McMoRan and Nevada Gold Mines. Currently leads Nicola’s exploration programs in BC.
Sam Wong – CFO
Certified Public Accountant with 18 years of experience in financial management and corporate strategy in the resource sector.
Bill Cawker – Corporate Development
Specialist in capital market communication and investor relations, part of the team since 2023.
Frank Hogel (Chairman), Dr. Paul Johnston, Malcolm Swallow and Brent Omland complement the Board with international expertise in finance, geology, engineering and mining trade.
Conclusion
Nicola Mining Inc. combines a rare combination of productive assets, cash flow-generating operations and high-grade exploration potential. The company controls a diversified portfolio with a focus on copper, silver and gold in one of Canada’s most stable mining districts.
With the ongoing development of the New Craigmont Copper Project, the revenues from the Merritt Mill, the participation in gold projects such as Dominion Creek and additional revenues from gravel and concrete production, Nicola has a solid financial base for self-financed value creation.
In a market environment of increasing demand for copper and precious metals, Nicola Mining offers a long-term, substantial investment story – supported by geological quality, technical expertise and strategic foresight.
