Nicola Mining Announces Positive Induced Polarization Survey Results
TSX.V: NIM
NICOLA MINING ANNOUNCES POSITIVE INDUCED POLARIZATION SURVEY RESULTS
VANCOUVER, B.C. July 24, 201 7 – Nicola Mining Inc. (the “ Company”) is pleased to announce
results of an Induced Polarization (IP) geophysical survey over Promontory Hill , an area of high interest
on the Company’s wholly -owned New Craigmont Project and located southwest of the Craigmont pit .
The New Craigmont Project (the “ Property”) that the Company had previously referred to as Thule
Copper is the site of the historic Craigmont Copper Mine, located near Merritt, BC and near Teck
Resources Limited’s Highland Valley Copper.
In November of 2016 a review of historic al geophysics was initiated by Nicola Mining Inc. and
conducted by Dr. Jules Lajoie. Ph.D. Geophysics. The review resulted in a request for a revision of the
chargeability inversion model provided by Frontier Geosciences Inc. (Frontier) on the 2005 3 -
Dimensional (3D) IP survey it had conducted over Promontory Hill in 2005 (Figure 1). The revised
inversion model is shown in plan in Figure 2.
Figure 1: Original 2005 Chargeability Inversion
Elevation 1300M
Historic Pit
Historic Drilling focus
Figure 2: Revised 2017 Chargeability Inversion
Elevation 1300M
Frontier’s revised inversion model was an excit ing result prompting the Company to engage Scott
Geophysics L td. to conduct a 2-Dimensional (2D) IP survey. The goal of the survey was to confirm
results of the updated 3D model and to further expand the geophysical coverage over th is new
Promontory Hill target. The result of the new survey discovered a very clear anomaly located
approximately 100 metres below surface, as highlighted in Figure 3.
Figure 3: E-W vertical section through Frontier’s revised 2017 3D chargeability inversion model at 5563000N, looking north.
This is what was to be verified with standard 2D IP surveying.
The success of the first line prompted the Company to increase the survey; a total of t hree lines, for a total
length of eleven kilometers were surveyed; two lines were East-West and one North-South (Figure 4).
Figure 4: Location of 2005 Frontier Geosciences Inc. 3-D Induced Polarization grid (red) and 2017 Scott Geophysics
LTD. 2-D Induced Polarization lines (yellow)
Results of the 2017 2D survey on the first line at 55 63000N confirmed the presence of elevated
chargeability (Figure 5). It is noted that due to the nature of averaging in the 2005 3D survey process, the
elevated chargeable area of the 3D survey exhibits a different shape and size than that of the 2-D survey
with the latter providing more detail.
Figure 5: Line 5563000N 2D chargeability field pseudo section above and inversion section below.
The next E -W line at 5562700N demonstrated continuation of the chargeable response to the south
(Figure 6).
Figure 6: Line 5562700N 2D chargeability field pseudosection above and inversion section below.
Figure 7 shows a compilation of the new geophysical data on color aeromag. Zones high
chargeability are noted to occur within subdued aeromagnetic.
Figure 7: Compilation of 2017 IP/mag geophysical data on aeromag color background. Ground magnetic profiles are
shown in yellow with highs to the east for the N-S line and to the north for the E-W lines. Thicker red lines show zones
of elevated chargeability. Dashed red line outlines a zone of subdued magnetic response that in part correlate with
elevated chargeability. The black outline is the area of the 2005 3D IP survey.
Dr. Jules Lajoie, highlighted in his Geophysicist, Technical Report, dated July 15, 2017,
” The geophysical signatures accumulated thus far in the program are suggestive of the
higher reaches of a porphyry system, with the Craigmont skarn deposit being the distal
expression of that. The weak mag high in the center of the dashed red line mag outlin e,
located just south of station 4600E on Line 5562700N could suggest a more magnetic
potassic core. In such systems, the strongest IP highs are commonly due to higher
concentrations of pyrite, with the Cu mineralization located elsewhere within more
moderate IP. As well magnetite destruction commonly results in lower and quieter
magnetics.”
In order to provide additional insight into the Promontory Zone, as well as other target areas on the
Property, lithologic and mineral alteration mapping over the Prom ontory Hill area conducted by
Fionnuala Devine M.Sc. identify a previously unrecognized silica -pyrite alteration corresponding to the
low magnetic area, possibly increasing in intensity to the south west.
“Pervasive silica-pyrite alteration occurs within the Nicola Group sedimentary rocks along a northeast-
trending trend in the southwestern part of the property. Most intense alteration completely replaces
medium- to coarse-grained wackes and conglomerates with clasts completely pyritized”. F. Devine, M.Sc.
Executive Summary of 2017 Mapping, July 2017.
The alignment of the newly identified 2D IP anomaly , recently recognized surface mapping of silica -
pyrite alteration, and the overall trend of alteration vectoring towards known occurrences of a diorite
(termed the Coyle Diorite) 2 km along trend to the south -west opens the possibility of a previously
unrecognized porphyry center in the New Craigmont property.
The summary report containing the results of the Promontory Hill IP program can be found posted on
www.NicolaMining.com
Peter Espig, CEO of Nicola Mining Inc, commented, “ We are extremely encouraged about both the IP
and mapping results, but, more importantly, that the two independent surveys complement one anoth er.
Positive results of Frontier Geosciences revised inversion model was followed by exciting results on our
own survey, which was conducted by Scott Geophysics L td and reviewed by Dr. Jules Lajoie.
Subsequent, mapping conducted by Fionnuala Devine M.S c. defined porphyry mineralization at surface
that clearly complements the IP result. The Company is fortunate to have a solid team of professionals
working closely together that is focused on maximizing the value of our wholly -owned New Craigmont /
Thule Copper Property. We look forward to continued exploration success in our 2017 Program.”
Qualified Person
Scientific and technical content of this news release were verified by Mr. Chris LeClair G.I.T.
and Mr. Kevin Wells, P.Geo., the latter whom is classified as a "Qualified Person" as defined by
National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and has a fully -
permitted 200 tonne per day custom m ill that recommenced operations in June 2016. Its 100% owned
state-of-the-art mill and tailing facility, located near Merritt, British Columbia, is capable of processing
both gold and silver mill feed via gravity and floatation processes. The Company has 1 00% of the New
Craigmont Property ( Thule Copper Property) covering 10,084 hectares along the southern end of the
Guichon Batholith. In addition, the Company also owns 100% of Treasure Mountain, its high -grade silver
property, and a gravel pit, which is located adjacent to its milling operations.
On behalf of the Board of Directors
“Peter Espig”
Peter Espig
CEO & Director
For additional information contact:
Peter Espig
Telephone: (778) 385-1213
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.