Nicola Mining Inc. Mineralized Sample at Dominion Property Returns 62.1 grams Gold and 320 grams per tonne Silver
Nicola Mining Inc. Mineralized Sample at
Dominion Property Returns 62.1 grams Gold
and 320 grams per tonne Silver
Vancouver, British Columbia--(Newsfile Corp. - October 14, 2020) -
Nicola Mining Inc. (
TSXV:
NIM
)
(
FSE: HLI
), (the "
Company
" or "
Nicola
") is pleased to announce that a 9.7 kilogram sample of
outcropping sulfide mineralization taken from the Number 16 Vein returned 62.1 g/t Au, 320 g/t Ag,
23.4% Pb, and 12.4% Zn.
The sample taken during a site visit on August 28, 2020 was collected for due
diligence purposes and to provide material for preliminary metallurgical test work currently being
undertaken.
The Company announced on September 17, 2020 that it had signed a Strategic Milling and Profit Share
Agreement (the "
Profit Share Agreement
") with High Range Exploration Ltd. ("
High Range
").
The
Company subsequently announced on September 23, 2020 that it had signed a Letter of Intent (the
"
LOI
") with High Range to acquire 50% of the Dominion Creek Property (the "
Gold Project
").
The Profit
Share Agreement and LOI provide Nicola a 75% economic interest in the Gold Project.
The 9.7 kilogram sample had the following grades:
62.1 grams per tonne Au
320 grams per tonne Ag
23.4% Pb, 12.4% Zn, 3.04% Fe, and 12.3% S
Additionally, the owner of the property provided 26.4 kg of mineralized material selected from a bulk
sample extracted between 1989 and 1992.
The 26.4 kg sample had the following grades:
58.7 grams per tonne Au
130 grams per tonne Ag
7.7% Pb, 4.2% Zn, 1.49% Fe, and 4.65% S
The Gold Property is underlain by a sequence of clastic sedimentary and carbonate units belonging to
the Cariboo Group. Mineralization on the property was exposed by mechanical trenching during
exploration programs completed in 1987 and 1990 (Figure 1).
Trenching was undertaken after Noranda
completed its drilling campaign. Exposure is poor outside the area of trenching and most of the
prospective zone is covered by colluvial material and glacio-lacustrine deposits. Mineralized boulders
have been identified along the mineralized trend extending 2 km through the prospect.
Gold mineralization is associated with deformed quartz and sulfide veins hosted within steeply dipping
planar shear zones. Sulfide veins and spatially associated quartz veins are strongly recrystallized.
Galena is the dominant sulfide and is accompanied by sphalerite, pyrite, and chalcopyrite. Gold grades
in the order of 30-60 g/t Au (1-2 ounces per ton) have been reported for the sulfide mineralization. Brittle
faults with multiple movement directions displace the mineralized zones and the early phase of ductile
deformation.
The Company is cognizant that the amount of material used in the grab sample analysis may not be
representative of grades that would be associated with a bulk sample.
In addition, mineralization width
may be reduced by up to 50% if lenticular geometry of mineralization persists.
Together, High Range
and the Company will soon commence the process to receive a bulk sample permit.
Figure 1:
Plan Map of the mineralized South Zone in the area of historical bulk sampling (data provided
by High Range).
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/4873/65893_249403afb416db85_001full.jpg
DOMINION CREEK PROPERTY HISTORY
The Dominion Creek Property consists of 9 mineral claims (55 units) totaling approximately 1,058
hectares. The property was acquired from the prospector N. Kencayd by Noranda Exploration Company
Ltd. in 1986. Noranda subsequently conducted geological, geochemical, and geophysical surveys which
culminated in an increase in their land position. Between 1987 and 1990, Noranda's exploration
program included a small (20 samples) geochemical silt sample survey. Encouraged by those results, a
larger soil geochemical survey (3,399 samples) was conducted. Noranda drilled a total of 53 shallow
diamond drill holes, totaling 3,483.86 meters (average depth of approximately 65.7 meters).
Trenching
of several coincident Pb, Zn, Cu, Ag and Au soil geochemistry anomalies resulted in the discovery of
several mineralized quartz veins. Drilling in the South Zone covered an area of approximately 300
meters by 200 meters. Limited drilling in the North Zone covered two small areas (approximately 50
meters by 60 meters) 300 meters apart. The drill targets were selected using the soil geochemistry
survey data and outcrop sampling from trenches and the drill access road data. Noranda subsequently
returned the property to N. Kencayd, who sold it to A. Raven in 1989. Between 1989 and 1992, A. Raven
exposed the South Zone and stock-piled ore grade material which culminated in a 1,180 tonne bulk
sample. There are two clear mineralized areas that include a small bulk sample pit and a mineralized
outcrop containing multiple distinctive veins (Figure 1).
Eighty tonnes of concentrate was shipped and processed at the Cominco smelter in Trail in 1992. The
mill head grade determined for the bulk sample was 14.1 g/t Au and the average gold recovery was
93%. Little material sorting was conducted at the time but visual separation of mineralized rock on site
prior to transport is viable. This is expected to increase grade and minimize transportation cost.
A Technical Report on the Dominion Creek Project
[1]
was completed by Geospectrum Engineering on
August 22, 2003.
Sample Preparation, Analysis and Quality Assurance/Quality Control
Nicola Mining applies a thorough quality assurance/quality control program at the Project, which is
compliant with industry best practices. Samples were collected by Nicola Mining and delivered to ALS
Metallurgy in Kamloops, where they were crushed, sub-sampled and pulverized in preparation for
analysis.
ALS Metallurgy is an ISO 9001:2015 certified laboratory and ran certified reference materials
during the analyses, as per industry accepted QA/QC practices.
Four high grade gold samples were
assayed in duplicate to confirm results.
Qualified Person
Kevin Wells, P.Geo, a consulting geologist to the Company, is the independent qualified person as
defined by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
for the technical
disclosure contained in this news release.
About Nicola Mining
Nicola Mining Inc. is a junior mining company listed on the TSX Venture and Frankfurt Exchanges that
maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia. The fully-
permitted mill can process both gold and silver mill feed via gravity and flotation processes. The
Company also owns 100% of the New Craigmont Project, a high-grade copper property, and an active
gravel pit that 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: (778) 385-1213
Email:
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.
[1]
Dominion Creek Project:
Cariboo Mining Division of British Columbia for XMP Mining Limited and
written by David K. Makepeace, M.Eng., P.Eng. of Geospectrum Engineering.
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