Nicola Mining Inc. Provides Update on Letter of Intent with Nitettsu Mining
Nicola Mining Inc. Provides Update on Letter
of Intent with Nitettsu Mining
Vancouver, British Columbia--(Newsfile Corp. - November 28, 2023) - Nicola Mining Inc. (
TSXV: NIM
)
(
FSE: HLI
), (the "
Company
" or "
Nicola
") announces the suspension to the process of entering into a
definitive agreement with Nittetsu Mining Co. Ltd. ("
Nittetsu
") with respect of the Company's wholly-
owned New Craigmont Copper Property (the "
Property
").
The Company announced that it had entered into a non-binding letter of intent ("
LOI
") on September 6,
2023, which was subsequently followed by a two-week site visit by Nittetsu's geological team.
During the site visit, Nittetsu and Nicola worked on mapping, evaluating recent and historic drill core, and
compilation of historical data. Two key factors limited the evaluation process:
Over 90% of the Property is covered with overburden or post-mineral rocks, thereby limiting the
ability to see mineralization via outcroppings.
The Property, other than areas associated with the historic mine, remains largely unexplored and
lacks drill data.
While the outcropping at the WP MINFILE showing displays strong copper mineralization, the source of
such mineralization remains unclear and will require additional exploration to confirm, as the area has
never been drilled or had an induced polarization survey ("
IP Survey
").
During the site visit, Nicola and Nittetsu concluded that there are two key zones of high interest, the WP
Zone and the western area between the historic pit and West Craigmont Zone, the second of which has
high grade copper drill results in skarn. Nicola will be able to leverage its operating cash flow to conduct
its 2024 exploration, which the Company will release upon completion of the plan.
In addition to Nittetsu, the Company is concurrently working with the University of British Columbia's
("
UBC
") and UBC Mineral Deposit Research Unit ("
MDRU
") to research the potential and existence of
copper porphyry systems.
MDRU in its "New Porphyry Signatures at North America's Highest Grade
Historic Copper Mine" poster, which will be released in December outlines key research objectives and
methods for next year and will continue to work with Nicola on the Property. This work is part of a Natural
Sciences and Engineering Research Council of Canada ("
NSERC
") Alliance supported research
project.
Peter Espig, CEO of Nicola, commented, "We are grateful for the experience working with Nitettsu and
its value-added input into our ongoing exploration.
While we are disappointed with the current outcome,
we understand the limits due to the inability to see geological formations at surface, which highlights the
importance of conducting additional IP Surveys over key target zones.
The two sides have a positive
relationship and continue to cooperate on exploration.
We are also excited to continue to work closely
with MDRU next year and very fortunate to be in a position, because of operational cash flow, to fund
exploration."
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. It has signed
Mining and Milling Profit Share Agreements with high grade gold projects. Nicola's fully permitted mill
can process both gold and silver mill feed via gravity and flotation processes.
The Company owns 100% of the New Craigmont Project, a high-grade copper property, which covers an
area of 10,084 hectares along the southern end of the Guichon Batholith and is adjacent to Teck
Resources Ltd.'s Highland Valley Copper, Canada's largest copper mine.
The Company also owns
100% of the Treasure Mountain Property, consisting of 29 mineral tenures covering 2178 hectares (ha)
and a mining lease covering 335 ha.
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.
Forward-Looking Statements:
This news release contains forward-looking statements and forward-looking information (collectively,
"forward-looking statements") within the meaning of applicable Canadian legislation. Forward-looking
statements are typically identified by words such as: "believes", "expects", "anticipates", "intends",
"estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such
words and phrases and similar expressions, which, by their nature, refer to future events or results that
may, could, would, might or will occur or be taken or achieved. All statements in this news release that
are not purely historical are forward-looking statements and include statements regarding beliefs,
plans, expectations and orientations regarding the future including, without limitation: the entry into the
Definitive Agreement on the terms announced in this news release, or at all, that the Transaction will
occur on the terms announced or at all; the proposed total contributions to be made by Nittetsu under
the Transaction; and the perceived benefits of the Transaction. Although the Company believes that
such statements are reasonable and reflect expectations of future developments and other factors
which management believes to be reasonable and relevant, the Company can give no assurance that
such expectations will prove to be correct. In making the forward-looking statements in this news
release, the Company has applied several material assumptions, including without limitation, that it
and Nittetsu will obtain the required approvals for the Transaction, market fundamentals will support
the viability of mining exploration, the receipt of any necessary permits, licenses and regulatory
approvals in connection with the future exploration of the Project, the availability of any financing
required for the Company to carry out its planned future activities, and the availability of and the ability
to retain and attract qualified personnel. Other factors may also adversely affect the future results or
performance of the Company, including general economic, market or business conditions, future
prices of minerals, changes in the financial markets and in the demand for minerals, changes in laws,
regulations and policies affecting the mineral exploration industry, as well as the risks and
uncertainties which are more fully described in the Company's annual and quarterly management's
discussion and analysis and in other filings made by the Company with Canadian securities
regulatory authorities under the Company's SEDAR+ profile. No assurance can be given that any of
the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits
the Company will obtain from them. Readers are cautioned that forward-looking statements are not
guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance
on forward-looking statements due to the inherent uncertainty of such statements. The Company does
not undertake any obligation to update such forward-looking information whether because of new
information, future events or otherwise, except as expressly required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/188831