Nicola Mining continues work at Treasure Mountain

On October 15, 2025, Nicola Mining Inc. announced its plan for a 2026 exploration drilling program at its 100% owned Treasure Mountain Silver Project. The program will involve diamond drilling, building upon prior exploration work including a 2012 airborne magnetic survey, multi-year soil sampling, and 2025 field reconnaissance. The objective is to determine the width and depth of the mineralized trend, focusing on northeast-southwest trending, steeply dipping sulphide-rich veins northwest of the currently suspended mine. The company has already secured a Multi-Year Area-Based (MYAB) exploration permit (announced June 9, 2025) and a ten-year mine lease extension (announced August 30, 2024) for the project, which has been in care and maintenance since 2013 due to depressed silver prices. CEO Peter Espig highlighted accelerated investor and strategic interest in Treasure Mountain, emphasizing its potential as a fully permitted mine.

The announcement of the 2026 drilling exploration plan for the Treasure Mountain Silver Project is a Routine - Positive development. It signals continued proactive management and a strategic commitment to developing all company assets. The project is fully permitted and has historical significance, and a planned exploration program is a logical next step to unlock its value, especially given the CEO's comments about increased investor interest and the mine's fully permitted status.

However, its materiality is tempered by several factors when viewed in the context of the company's broader activities: 1. Future-Oriented: This is a plan for 2026 exploration, not immediate results or commencement of production. The impact is therefore longer-term and speculative. 2. Permits Previously Announced: The key permits (MYAB in June 2025 and the 10-year mine lease extension in August 2024) that enable this exploration were already disclosed, so the news primarily elaborates on how these permits will be utilized. 3. Secondary Project: While important, Treasure Mountain is a silver project, and the company's primary exploration focus has historically been the New Craigmont Copper Project, which has recently yielded significant high-grade copper intercepts. Its immediate financial impact is not comparable to the recent gold concentrate sales or the substantial operational revenues from the gravel pit and cement plant. 4. Financial Context: Despite this positive exploration plan, the company reported a significant working capital deficit of -$1.46M as of March 31, 2025, and a net loss. While recent gold sales and industrial contracts provide revenue, continuous capital management and avoiding dilution remain critical.

In summary, this news is a positive indicator of the company's long-term asset development strategy but does not represent a material, immediate shift in its financial or operational outlook compared to other recent, more impactful developments (like the high-grade copper results, gold sales, or the industrial contracts).

Nicola Mining Inc. (TSXV: NIM) is a diversified Canadian junior mining company based in British Columbia. Its core assets include: 1. Merritt Mill and Tailings Facility: A 100% owned, fully permitted gold and silver milling facility near Merritt, B.C., uniquely permitted to accept third-party mill feed from across the province. The company has invested over $33 million in this facility and recently completed upgrades (H2 2024). It's positioned as a regional milling hub and generates operational revenues. 2. New Craigmont Copper Project: A 100% owned property spanning over 10,800 hectares adjacent to Teck Resources' Highland Valley Copper, Canada's largest copper mine. Historically, Craigmont was Canada's highest-grade copper mine. Nicola is actively exploring for both skarn and porphyry copper systems. This is the company's flagship exploration project. 3. Treasure Mountain Silver Project: A 100% owned, fully permitted silver mine near Hope, B.C., currently in care and maintenance since 2013 due to depressed silver prices. It has a historical resource estimate and significant exploration upside. 4. Dominion Creek Gold Project: Nicola holds a 75% economic interest in this high-grade gold and silver project, located northeast of Wells, B.C. The project is advancing towards bulk sample production. 5. Industrial Operations: Through a partnership with Lower Nicola Site Services Ltd. (LNSS), Nicola operates a gravel pit and has completed construction of a cement ready-mix plant. These operations provide significant, stable operational revenues, including contracts with Teck Resources and the Ministry of Transportation.

The New Craigmont Copper Project is considered the flagship exploration project due to its historical significance, location adjacent to a major copper mine, and recent promising high-grade drill results indicating a potential porphyry system. However, the operational revenues from the Merritt mill and industrial assets (gravel/cement) are critical for self-funding exploration and sustaining operations, which is unusual for a junior mining company.