Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) has released the results of an independent underground inspection of its Treasure Mountain Silver Mine in British Columbia, revealing that the mine is in better-than-anticipated condition following approximately 13 years of inactivity. The assessment, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, indicates that the mine's infrastructure has largely remained intact, potentially accelerating the timeline for the planned 2027 restart. The findings are critical for the company as it evaluates the feasibility of recommencing mining operations at the site.
The inspection found that both principal portals remain accessible, significant portions of the underground development are still open, and natural ventilation is functioning. Much of the historical infrastructure remains in place, with no conditions observed that would prevent the project from advancing to the next stage of evaluation. This is a positive indicator for Nicola Mining, as it suggests that the mine may require less rehabilitation work than initially expected, thereby reducing both time and capital expenditures needed to bring the mine back into production.
The assessment also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could provide exploration opportunities. These findings open up possibilities for expanding the mine's resource base and extending its operational life. Nicola Mining plans to advance a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping. These steps are expected to support subsequent mine planning, ventilation design, rehabilitation, and the recommencement of mineral extraction.
CEO Peter Espig expressed optimism about the results, stating that the existing underground development, combined with Nicola's permitted Merritt milling infrastructure, could provide a disciplined and capital-efficient pathway toward renewed silver production. The Merritt mill is fully permitted and can process both gold and silver mill feed via gravity and flotation processes, which is a strategic advantage for the company.
The Treasure Mountain Property includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares. The company also owns 100% of the New Craigmont Project, a high-grade copper property adjacent to Highland Valley Copper, Canada's largest copper mine. These assets position Nicola Mining as a potential player in the silver and copper markets, and the positive assessment of Treasure Mountain could enhance the company's overall portfolio value.
The news comes at a time when silver prices are experiencing volatility, and investors are closely watching mining companies with near-term production potential. The better-than-expected condition of the mine could reduce the risk associated with the restart, making the project more attractive to investors. However, the company still needs to complete further assessments and secure financing before the 2027 restart can be realized.
For more information on the full press release, visit https://ibn.fm/HdSg9. To stay updated on the latest news and updates relating to NICM, please visit the company's newsroom at https://ibn.fm/NICM.
