Nicola Mining Enters into Long-Term Mining and Milling Profit Share Agreement and Receives Final Payment FOR 289.381 DRY Metric Tonnes Concentrate
TSX.V: NIM
NEWS RELEASE
NICOLA MINING ENTERS INTO LONG-TERM MINING AND MILLING PROFIT SHARE
AGREEMENT AND RECEIVES FINAL PAYMENT FOR 289.381 DRY METRIC TONNES
CONCENTRATE
VANCOUVER, B.C., April 6 , 2017 – Nicola Mining Inc. (the “ Company” or “Nicola”) is pleased to
announce that it has entered into a long-term Mining and Milling Profit Share Agreement (“LT
Agreement”) with Gavin Mines Inc. (“Gavin Mines”). On May 31, 2016, the Company announced that
it had entered into a Milling and Profit Share Agreement with Gavin Mines. The Company subsequently
announced that it had commenced milling operations on June 16, 2016. Under the original Milling and
Profit Share Agreement Gavin Mines shipped approximately 5, 700 tonnes of stockpile mat erial that the
Company processed and produced approximately 47,193 grams Au (1,517.3 troy ounces) and 249,628
grams Ag (8 ,025.7 troy ounces). Gross proceeds for the stockpile material was approximately USD
$1,706,711.
Whereas the original agreement focused on processing a stockpile, the four-year LT Agreement will focus
on material mined from the Gavin Mine’s Dome Mountain (the “Mine Site ”), which is located near
Smithers, British Columbia. The LT Agreement replaces and supersedes the original 2016 agreement.
Pursuant to the LT Agreement, Gavin Mines has agreed to ship up to 40,000 tonnes of mill feed per year
to the Company’s 200 tonne per day mill facility (the “Mill”), located 14 kilometers from Merritt, British
Columbia. On April 2016, the Company announc ed that it had received an amendment to its mine
permit, M-68, allowing it to process third party material . Because the Mill is centrally located in British
Columbia, maintains a fully -lined tailings facility and is constructed on a wholly -owned freehold mine
site, it can serve as a project facilitator / consolidator for BC-based small-to-mid sized mine projects.
In Linden Mining and Consulting’s 2012 Update Report, which was not filed with the BCSC, the Mineral
Reserve tonnes was increased to 146,992 tonnes. Average grades are as follows:
• Gold: 11.61 grams Au per tonne, using a cutoff grade of 6.0 grams / tonne, and;
• Silver: 100.8 grams Ag per tonne
Note: the “Probable Mineral Reserve” changed to “Mineral Reserve.” This has been reviewed by Daryl
Hanson, QP, PGeo.
Under the LT Agreement , Gavin Mines will receive up to C$263.50 for all aspects associated with
mining, operations, and transportation of the material to the Mill, while the Company will receive up to
C$55.00 for processing of the material. In addition, there are costs associated with assays and sale of
concentrate that will be shared by both parties. In order to maximize revenues and profitability, material
will be sorted at the Mine Site to prior to s hipping to the Mill, with a targeted above average grades of the
2012 Update Report. The LT Agreement is intended to provide the Company with a stable source of cash
flow revenue and utilization of the Mill.
The Company has continued to upgrade its appr oximate $22.0 million mill processing facility, which was
completed in 2013, with the intention of increasing throughput capacity. The modern facility is
constructed with the intention of minimal environmental impact.
Nicola continues to monitor the opt ion of opening and commencing mining activity on its wholly -owned
Treasure Mountain Mine. Mining activity would commence by extracting 14,000 tonnes of material from
Level 1 Stope 2. Per the technical report entitled “Technical Report, Project Update Treasure Mountain
Property Tulameen River Area, BC, Canada” dated June 7, 2012, Level 1 Stope 2 contains a resource of
430,000 oz. Ag, 1,590,000 lbs. Pb, and 940,000 lbs. Zn. The Mill has the permit capacity to process the
material from both Treasure Moun tain and Gavin Mines and is considering further mill modifications to
allow it to process two material sources concurrently.
Thule Copper Property . The Company continues to increase the emphasis on its wholly-owned Thule
Copper property. It has submitted a notice of work for its 2017 drill program that will focus primarily on
the Embayment and Titan Queen Zones. In its 2016 Exploration P rogram the Company intersected
1.11% copper over 85.92 metres in the Embayment Zone. Nicola also continues to prepare for
exploration on its waste dumps and has entered into an Exploration and Material Purchase Agreement
with Teck Highland Valley Copper Partnership , a wholly owned subsidiary of Teck Resources Limited ,
as announced in the Oct. 3, 2016 news release.
Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and is in the
process of recommencing mill feed processing operations at its 100% owned modern mill and tailings
facility, located near Merritt, British Columbia. The fully -permitted mill is able to process both gold and
silver mill feed via gravity and floatation processes. The Company has 100% of the 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
Phone: (604) 647-0142
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.
Disclaimer for Forward-Looking Statements
This news release contains projections and forward -looking statements that involve various risks and
uncertainties rega rding future events. Such forward -looking statements are based on current expectations of
management and a number of risks and uncertainties and are not guarantees of future performance of the
Company. These statements, including information relating to th e quantity and quality of projected mill feed and
concentrate produced, include statements regarding the Company’s expected processing timing and capabilities,
statements regarding the milling and profit sharing agreements and statements regarding potential future plans.
There are numerous risks and uncertainties that could cause actual results and the Company’s plans and
objectives to differ materially from those expressed in the forward -looking information, including the inability of
the Company to effect the expanded operations; the timing of delivery of material to the Mill site; the timing and
price of delivery and processing of same may not be the quantity and quality of mill feed and concentrate as
expected; and other factors beyond the Company’s control. Actual results and future events could differ materially
from those anticipated in such forward- looking statements. These and all subsequent written and oral forward -
looking statements are based on estimates and opinions of management on the dates the y are made and are
expressly qualified in their entirety by this notice. Except as required by law, the Company does not assume any
obligation to update any forward -looking statements in this news release should circumstances or management’s
estimates or opinions change.