Nicola Mining Inc. has announced two significant developments that could shape its operational and exploration trajectory: the extension of its Rock and Gravel Extraction and Preferential Engagement Agreement with Lower Nicola Site Services Ltd. (LNSS) through March 3, 2033, and the completion of its first diamond drilling program at the MB Zone of the Treasure Mountain Silver Project. These moves are important because they provide long-term revenue visibility from the Craigmont Mine Site while advancing a high-potential silver asset, with pending assay results poised to offer critical insights into the company's resource base.
The agreement extension grants LNSS exclusive rights to extract gravel and rock from the Craigmont Mine Site near Merritt, British Columbia, with Nicola receiving per-tonne royalties. The extension also maintains preferential engagement provisions for competitive services provided by LNSS, supporting continued collaboration and Indigenous economic participation. For investors, the decade-long extension locks in a steady royalty stream, reducing cash flow uncertainty and reinforcing Nicola's relationship with local Indigenous partners. The company's fully permitted mill and tailings facility, also located near Merritt, can process both gold and silver mill feed via gravity and flotation processes, adding further operational flexibility. Nicola owns 100% of the New Craigmont Project, a high-grade copper property spanning 10,913 hectares along the southern end of the Guichon Batholith and adjacent to Highland Valley Copper, Canada's largest copper mine. This proximity to a major producer enhances the strategic value of Nicola's land package and could attract future partnership interest.
Separately, the four-hole diamond drilling program at the Treasure Mountain Silver Project totaled approximately 800 meters and targeted a previously undrilled quartz-sulphide vein system. Geological logging and core sampling are underway, with laboratory assays pending. Preliminary visual observations identified intervals of sulphide mineralization, including pyrite, pyrrhotite and sphalerite, although analytical results are required to assess the findings. The company also anticipates assay results from its 2026 New Craigmont copper exploration program. These pending assays are crucial because they will determine whether the MB Zone hosts economically viable mineralization, potentially expanding the resource potential of Treasure Mountain, which includes 30 mineral claims and a mineral lease spanning over 2,200 hectares. Positive results could elevate the project's profile and attract further investment.
Nicola Mining Inc. is a junior mining company listed on the Exchange and Frankfurt Exchange. For more details, the full press release is available at https://nnw.fm/Zq96r. Investors can find additional information through Nicola Mining (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) and the company's newsroom at Nicola Mining Inc.. The announcement was distributed via NetworkNewsWire, a specialized communications platform that is part of the Dynamic Brand Portfolio at IBN. NetworkNewsWire provides wire solutions through InvestorWire and other services. A full disclaimer is available at https://www.NetworkNewsWire.com/Disclaimer.
