Impact: Neutral
Nicola Mining provided an operational and exploration update at its Merritt Mill, New Craigmont Cu project, and Treasure Mountain mine in BC. The 200 tpd Merritt mill is the only facility in BC permitted to process third-party Au and Ag mill feed. The facility is currently processing third-party ore. The sale of stockpiled Au concentrate is expected to commence in September. The New Craigmont mine is Nicola’s flagship exploration asset, which historically produced 900M lbs of Cu. A Phase 1 drill program is underway, testing potential porphyry targets at the WP zone in the western part of the project. Alteration and mineralization intersected so far is typical of that observed in the peripheries of porphyries. Nicola has also received a 10-year mining lease extension at its past-producing Treasure Mountain mine, providing it with an option to re-open the mine. With cash flows from the mill helping to fund exploration at the other two projects, we believe Nicola provides investors with exposure to a value-creation opportunity through a unique blend of exploration upside with minimal shareholder dilution.
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