Nicola Mining Announces Extension of Agreement with Lower Nicola Site Services Ltd. and Completion of Drill Exploration for 2026 at Treasure Mountain
Nicola advances early-stage drilling while relying on third-party mill feed for survival.
Nicola Mining Inc. (NIM) has extended its Rock and Gravel Extraction and Preferential Engagement Agreement with Lower Nicola Site Services Ltd. (LNSS) until March 3, 2033, maintaining the existing royalty structure and commercial terms.
The company also completed its first-ever diamond drill program at the MB Zone of the Treasure Mountain Silver Project. The program involved drilling four holes for approximately 800 meters to test a previously undrilled quartz-sulphide vein system. Preliminary visual core examination identified intense sulphide mineralization, including pyrite, pyrrhotite, and sphalerite. Assay data is pending and will be used to refine the geological model.
CEO Peter Espig described the agreement extension as validation of a durable commercial model and expressed anticipation for upcoming assay results from both Treasure Mountain and the New Craigmont copper project.
Nicola Mining Inc. (NIM) issued an exploration update and announced an extension of its administrative agreement with LNSS, rather than providing earnings or guidance. The release contains no new financial results, production volumes, cost metrics, or reserve and resource updates. The LNSS agreement extension represents a routine commercial renewal that maintains existing royalty terms and does not alter near-term cash flows or capital requirements.
The company’s Treasure Mountain drilling program remains in its early stages, with visual observations explicitly noted as preliminary and not a substitute for analytical results. The market has already priced in the Nasdaq listing, recent financings, and the company's reliance on third-party milling.
Nicola Mining Inc. (NIM) operates the Merritt Mill, a fully permitted gold and silver milling facility near Merritt, British Columbia. It is the only facility in the province permitted to accept third-party precious metal mill feed. The company holds exploration and development-stage assets, including New Craigmont, a copper project covering more than 10,800 hectares; Treasure Mountain, a silver asset that is permitted but in care and maintenance; and Dominion Creek, a gold project where a bulk sample is planned.
The strategic model positions Nicola as a project facilitator and milling hub, leveraging partnerships with Blue Lagoon Resources, Red Eye Resources, and Talisker Resources to generate toll-milling revenue and profit shares. The company transitioned from a pure exploration entity to a cash-flow-generating milling operator in late 2025, though profitability remains elusive.