Nicola Provides Year in Review: 2023
Nicola Provides Year in Review: 2023
Vancouver, British Columbia--(Newsfile Corp. - December 11, 2023) - Nicola Mining Inc. (TSXV: NIM)
(FSE: HLI) (OTCQB: HUSID) (the "
Company
" or "
Nicola
") is pleased to provide its "
Year in Review:
2023"
, with the hope of providing additional clarity on several key milestones that were achieved in
2023.
In addition to highlighting the significance of noteworthy events, we are hopeful that this letter can
provide clarity on key news releases and insight into next year.
Financially the Company has undergone a positive metamorphosis; we ended Q3 with close to $6.0 MM
in cash versus $0.8 MM one year earlier. For the first nine months of the year, Nicola achieved positive
earnings, a unique characteristic amongst junior mining companies.
Revenues were attributed to the
following sources:
milling, gravel and rock quarry, and reclamation soils.
In addition to the current cash
position, the Company was able to repay a US$750,000 (C$1,028,475) Prepayment Facility to Ocean
Partners UK Limited
[1]
("
Ocean Partners
")
[2]
.
The relationship between Nicola and Ocean Partners
was further strengthened when the co-CEO of the latter joined our board of directors
[3]
.
It is best to break down the Year in Review by separating the Company's projects.
Merritt Mill Site:
Mine Permit M-68:
900 acres of freehold land.
Following on the Company announcing that it had, on December 2
nd
, signed a memorandum of
understanding with
Osisko Development Corp
("
Osisko
") (
NYSE: ODV,
TSX.V: ODV)
, on
January 30,
2023
Nicola announced that it was preparing to recommence milling operations.
At the time of the
release the Company announced that it had received approximately 15,000 tonnes of gold mill feed from
Osisko's Cariboo Gold Project.
Subsequently, the Company announced on March 28, 2023
[4]
that it had
completed upgrades to the mill and commenced the production of gold concentrate.
Given the time
required to process the Osisko material the Company applied and received amendments to its ore
stockpile duration from 30 to 90 days, which was followed by a one-time grant of up to 120 days from the
Ministry of Energy, Mines and Low Carbon Innovation ("
EMLI
") on July 26, 2023.
Later in spring the Nicola and its rock quarry / gravel pit partner Lower Nicola Site Services Ltd.
("
LNSS
")
[5]
ramped up production to help repair highways and infrastructure that was damaged during
the November flooding of 2021.
The Company also worked as a partner to the Trans Mountain Pipeline
Expansion Project by received soils and non-acid generating rock as part of its reclamation requirement.
The ability to generate operational revenues minimizes the requirement to raise operational capital,
allows the company to service debt obligations and funds exploration at its flagship, New Craigmont
Copper Property.
New Craigmont Copper Property:
Mine Permit M-68:
10,913 hectares of mineral claims
On May 2, 2023, Nicola announced that it had finalized a 2023 diamond drilling exploration program (the
"
2023 Program
") and hired William Whitty, P. Geo as VP of Exploration.
The 2023 Program had two
key targets, southeast of the historic mine and the Marb 72 and WP zones, which are located proximal to
the Lornex Fault
[6]
(Figure 1). The rational of drilling southeast of the historic mine was to test the
extension of skarn mineralization southeastward from the historic pit because previous drilling northeast
of the pit included very high grade and long intercepts, including NC-2018-03: 100.6m @ 1.3% Cu.
Five
holes were drilled, which helped define and close off the southeastern extent of skarn mineralization.
Future exploration of a mineralized halo will focus on the northern side, east and west, of the pit. These
five holes contained important porphyry indicators that prompted the extension of the fifth hole, and the
drilling of an additional sixth hole, which are being used to target a potential porphyry copper system on
the property.
Figure 1. Map of the New Craigmont Property (Projected in NAD 83 Zone 10).
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4873/190397_2d94d78944efba67_002full.jpg
The second area of importance was the Marb 72 (Figure 2a) and WP zones (Figure 2b). A significant
amount of time was spent mapping and exploring the two zones, which see copper outcroppings
supported by aeromagnetic and ZTEM surveys.
The Company opted to postpone drilling until 2024
because it was deemed important to complete induced polarization surveys ("
IP Survey
") prior to
drilling. Given the size of the resistive and magnetic body, an IP survey would help define targets.
An exciting characteristic of the two zones is that it includes both Nicola and Guichon units and highlights
copper mineralization to be indifferent of either host unit. Nittetsu Mining Ltd., of Japan was also active
exploring the Marb 72 and WP zones and has provided key input into our 2024 Program.
It is important
to understand that Nittetsu's suspension of the LOI is not based on a conclusion that the Project lacks
merit, but, rather, that the overburden (which is characteristic of British Columbia) limited its ability to
view outcrops.
One of their suggestions is to carry out more trenching and IP surveys in key areas.
Figure 2. Outcrops with copper mineralization at (a) Marb 72 and (b) WP.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4873/190397_fig1.jpg
In Summary:
Year 2023 has proven to be a pivotal year for Nicola, operational activities driving cash flow and
heighted interest in the Craigmont Project.
Since the
November 28, 2023
news release, UBC Mineral
Deposit Research Unit ("
MDRU
") has published its "New Porphyry Signatures at North America's
Highest Grade Historic Copper Mine" poster, on the Craigmont Project.
The Company has also been
approached by additional suitors regarding the Craigmont Project, as well as opportunities for the Merritt
Mill.
Link to MDRU Poster:
Poster Link
Recent CEO Interview:
Cannot view this video?
Visit:
https://www.youtube.com/watch?v=bmKnJ8qaALk
Qualified Person
Kevin Wells, P.Geo, a consulting geologist to the Company, is the independent qualified person as
defined by NI 43-101 for the technical disclosure contained in this letter to shareholders.
On behalf of the Board of Directors
"
Peter Espig
"
Peter Espig
CEO & Director
For additional information
Contact:
Peter Espig
Phone: (778) 385-1213
Email:
URL:
www.nicolamining.com
Forward Looking-Statements
Certain statements in this letter are forward-looking statements, which reflect the expectations of
management regarding the Company. Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding
the future, including, but not limited to, statements regarding: (i) Nicola's near term and long term goals,
specifically with regard to its priorities for 2022; (ii) Nicola's ability to move forward on its five-year
exploration plan; (iii) the anticipated receipt of the MYAB and the ZTEM Survey results and, as a result
thereof, any effect these results may have on Nicola's expansion and diamond drilling exploration plans
for both copper skarn and copper porphyry targets; (iv) the final submission of its MYAB application for
Treasure Mountain; (v) the value, intrinsic or otherwise, of the Merritt Mill Site; (vi) any cash flows
associated with milling activities at the Merritt Mill Site; (viii) the prospects of Nicola's exploration
projects, including its New Craigmont, Treasure Mountain and Merritt Mill Site; and (viii) any general
statement regarding Nicola's operational and exploratory goals going forward. Such statements are
subject to risks and uncertainties that may cause actual results, performance or developments to differ
materially from those contained in the statements, including risks related to factors beyond the control of
the Company. These risks include, but are not limited to: (i) changes in Nicola's business relationships
and plans; (ii) changes in the anticipated revenue streams and operational and exploratory goals; (iii) the
failure of Nicola to receive the necessary approvals for its MYAB applications and exploration permits,
as applicable; (iv) and other general business, economic, or market related risks beyond the director
control of the Company and which may affect the Company's business and operations. The novel strain
of coronavirus, COVID-19, also continues to pose risks that are currently indescribable and
immeasurable. 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. The
Company undertakes no obligation to update forward-looking information if circumstances or
management's estimates or opinions should change, unless required by law. The reader is cautioned not
to place undue reliance on forward-looking information.
[1]
Ocean Partners operates in a number of countries throughout the world.
Ocean Partners maintains a strong global network of relationships and
contacts in the base metal mining and smelting sector.
[2]
News filed on Sedar: December 29, 2022.
[3]
Source:
https://nicolamining.com/brent-omland-to-join-nicola-minings-board-of-directors/
[4]
Source:
https://nicolamining.com/nicola-mining-inc-resumes-operations-at-new-craigmont-project-2023/
[5]
LNSS is a partnership between the Lower Nicola Indian Band Development Corporation and Infracon Construction Inc.
[6]
The
Lornex Fault
trends north-south towards Highland Valley Copper and is an important structural control for mineralization at the Lornex and
Bethlehem deposits
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/190397