{kanada_flagge}Nicola Mining Inc (TSX.V: NIM; FSE: HLI) is making preparations for another cash-flow project in its portfolio. This time, the private partner is called High Range Exploration and it involves extracting and processing a 10,000-tonne bulk sample from the ultra-high-grade Dominion Creek Gold Project in British Columbia. Nicola holds a 75% economic interest in the project. The two partners report that consultations with First Nations have been successfully completed. A letter of support has been received and has now been forwarded to the Ministry of Energy, Mines and Low Carbon Innovation (“EMLI”). The application for a 10,000 tonne bulk sampling permit has been formally submitted to the Ministry.
Summary: Unlike most exploration companies, Nicola Mining has revenue from multiple sources: the landfill business, the supply of gravel, and the processing of third-party ore at the company’s 100 percent owned mill in Merritt. Nicola’s mill facility is the only facility in the province of British Columbia that is permitted to accept gold and silver mill material from third parties throughout the province! A profit sharing agreement has been reached with the current supplier of raw ore, Osisko Development. The timely mining and processing of a 10,000 tonne bulk sample from the Dominion Project could take Nicola’s earnings to a new level. Nicola would be entitled to 75 percent of the profit. Bulk samples analyzed by Nicola to date have averaged grades near 2 ounces of gold per ton. At those grades, the 10,000 tons of ore would represent about $40 million worth of gold. Even at Noranda’s 1992 results, the gold would still be worth $10 million. The reality will likely be somewhere in between. Nicola shareholders get the copper exploration near the former Craigmont Mine adjacent to Highland Valley (Teck) on top as an additional opportunity. Drilling is currently underway.
Nicola Mining Inc (TSX.V: NIM; FSE: HLI) is making preparations for another cash-flow project in its portfolio. This time, the private partner is called High Range Exploration and it involves extracting and processing a 10,000-tonne bulk sample from the ultra-high-grade Dominion Creek Gold Project in British Columbia. Nicola holds a 75% economic interest in the project. The two partners report that consultations with First Nations have been successfully completed. A letter of support has been received and has now been forwarded to the Ministry of Energy, Mines and Low Carbon Innovation (“EMLI”). The application for a 10,000 tonne bulk sampling permit has been formally submitted to the Ministry.
The Dominion Creek property is located 43 kilometers northeast of the town of Wells approximately a six hour drive from Nicola’s processing plant in Merritt. Originally, the parties had budgeted up to $300,000 for road construction and infrastructure improvements. However, a significant amount of road construction has since been completed by other projects, reducing the anticipated budget for road construction. Nicola has agreed to provide up to $100,000 to begin road construction, which should accelerate work on the gold project once bulk sample permitting is received.
The Dominion Creek property consists of 8 mineral claims (55 units) totaling approximately 1,040 hectares. A bulk sample of 1,180 tonnes from the South Zone was collected in 1992 and limited drilling has been conducted. In 1992, 80 tonnes of concentrate were shipped and processed at the Cominco smelter in Trail. Despite dilution of the samples taken, the bulk sample at the time returned average ore grades of 14.1 g/t Au. The average gold recovery was 93%.
The Dominion Creek site has long been owned by Noranda Exploration Company Ltd. who initially conducted a small silt geochemical survey (20 samples) in 1986 and were encouraged by these results to conduct a larger soil geochemical survey (3,399 samples). There are two clearly mineralized areas which include a small pit with large samples and a mineralized outcrop with several distinct veins.
Nicola conducted due diligence and collected fresh samples on site. Results from a 9.7 kg sample of prominent sulphide mineralization from vein number 16 returned 62.1 g/t Au, 320 g/t Ag, 23.4% Pb and 12.4% Zn. In addition, the property owner provided 26.4 kg of mineralized material selected from a bulk sample collected between 1989 and 1992. The 26.4 kg sample had the following grades: 58.7 g/t Au, 130 g/t Ag, 7.7% Pb, 4.2% Zn, 1.49% Fe and 4.65% S.
Summary: Unlike most exploration companies, Nicola Mining has revenue from multiple sources: the landfill business, the supply of gravel, and the processing of third-party ore at the company’s 100 percent owned mill in Merritt. Nicola’s mill facility is the only facility in the province of British Columbia that is permitted to accept gold and silver mill material from third parties throughout the province! A profit sharing agreement has been reached with the current supplier of raw ore, Osisko Development. The timely mining and processing of a 10,000 tonne bulk sample from the Dominion Project could take Nicola’s earnings to a new level. Nicola would be entitled to 75 percent of the profit. Bulk samples analyzed by Nicola to date have averaged grades near 2 ounces of gold per ton. At those grades, the 10,000 tons of ore would represent about $40 million worth of gold. Even at Noranda’s 1992 results, the gold would still be worth $10 million. The reality will likely be somewhere in between. Nicola shareholders get the copper exploration near the former Craigmont Mine adjacent to Highland Valley (Teck) on top as an additional opportunity. Drilling is currently underway.
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