VANCOUVER, BC, August 24, 2020 – Nicola Mining Inc. (TSX.V: NIM)(FSE: HLI), (the “Company” or “Nicola”) is pleased to announce that it has completed the first phase of the soil sampling program (the “2020 Program”) at its wholly owned Treasure Mountain Property, a fully-permitted high grade silver mine located approximately 90 minutes to its Craigmont Mill. This first phase included 304 of the planned 530 B-horizon soil samples collected over the MB zone and to the southwest (Figure 1). During the soil sampling program, five outcrops were identified hosting mineralized vein material which were sampled via surface grab samples and shallow drilling, via portable drill. The locations indicate a potential strike length of mineralization of approximately 1.2km, that had previously not been tested by the Company. The soil samples are currently undergoing analysis at MSA Labs in Langley, British Columbia. All rock and drill samples have been submitted for analysis at ActLab, in Kamloops, British Columbia. Both labs are independent commercial laboratories that are ISO 9001 certified and ISO 17025 accredited.
Figure 1: Treasure Mountain Property with completed historic (grey) and recently completed soil samples (black).
The 2020 Program objective is to complete the 2019 soil program which was cut short due to inclement weather[1]. Complimentary to the soils program, the Company has revisited reported locations of silver-bearing veins on the property identified in historic literature of the area. A total of five outcrops of sphalerite-galena-chalcopyrite bearing veins (Figure 2 and 3) form a potential mineralized corridor of approximately 1.2 km strike length (Figure 2) was identified. These sites include the Cal Vein, which was sampled as part of the 2019 soils program[2].
Figure 2: Map of vein outcrop and portable drill sites along the mineralization trend.
Figure 3: Examples of mineralized vein identified on Treasure Mountain Property
| A grab sample of galena-sphalerite-chalcopyrite from an outcrop along trend (“site C” in Figure 2) | Photo of vein outcrop along the mineralized trend. Ruler is 2 meters wide (“site B” in Figure 2) | |
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These results are very encouraging as they identify the potential for other mineralized structures, outside of the Treasure Mountain underground mine workings, that were previously underexplored by preceding operators on the property.
The second phase of the 2020 Program aims to complete the planned soil sampling program.
The Company also announces a non-brokered private placement financing (the “Offering”) of up to 5,000,000 (each, a “Unit”) at a price of $0.13 per Unit for gross proceeds of up to $650,000. Each Unit consists of one common share of the Company (each, a “Share”) and one-half of one share purchase warrant (each whole warrant, a “Warrant”). One Warrant entitles the holder thereof to purchase one additional Share of the Company at a price of $0.20 per Share for a period of two years from closing of the Offering
No finders’ fees will be payable in connection with the Offering.
All securities issued in connection with the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Completion of the Offering is subject to the approval of the TSX Venture Exchange. The aggregate gross proceeds from the sale of the Offering will be used for general working capital.
None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Qualified Person
Michael Frye, 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 already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill can process both gold and silver mill feed via gravity and flotation processes. The Company also owns 100% of the New Craigmont Project, a high-grade copper property, and an active gravel pit that is located adjacent to its milling operations.
About Treasure Mountain Property
Nicola Mining Inc. owns 100% of the Treasure Mountain Property, an approximately 7,000-acre silver deposit consisting of: 51 mineral tenures, comprising 21 legacy claims: 100 cell units, and five crown grants for a total of approximately 2,850 hectares.
The Company continues to maintain the option of reopening Level 1 in order to extract silver mill feed from Stope 2 and continues to monitor silver prices prior to reconsidering reopening the mine. The Property also has 3 highly prospective targets:
- MB Zone located approximately 1.5km from the underground mine workings on the undrilled Northern slope of the mountain.
- JK Vein/Eastern Zone located approximately 1.0 km from the underground mine workings.
- Jensen Portal located approximately 100 m west of the Level 3 Portal and previously mined in the 1920’s.
On behalf of the Board of Directors
“Peter Espig”
Peter Espig
CEO & Director
For additional information
Contact: Peter Espig
Phone: (778) 385-1213
Email: info@nicolamining.com
