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NIM: Final Permit for Bulk Sample at Dominion Creek Received

What you need to know:
• Nicola announced that it received the final permit for the 10,000t bulk sample at the Dominion Creek Mineral Project.
• The bulk sample will be processed at Nicola’s Merritt Milling Facility providing a potential third source of ore to the mill as early as Q2/25.
• NIM announced the closing of its non-brokered private placement. The Company raised $1.1M through the issuance of 4.0M units, less than originally planned for the placement, given its strong cash position.

Yesterday, Nicola Mining Corp. (NIM:TSXV, HUSIF:OTC) announced it has received the final bulk sample permit for its Dominion Creek Project, a high-grade gold and silver project of which NIM owns a 75% economic interest. This comes after NIM announced it had received a draft sample permit on March 6th, 2025, find our research note on this here. The Company has already paid the required reclamation deposit and plans to begin ore extraction as early as Q2 with ore processing being conducted at its Merritt Mill & Tailings Facility. We are maintaining our BUY rating and $0.60/share target price on Nicola Mining.

NIM has received the final permit to complete a bulk sample at its Dominion Creek Mineral Project. The permit, initially filed in 2018 and last updated in February 2025, allows ore extraction until February 2030, after which only reclamation activities can occur. The permit allows Nicola and its partner, High Range Exploration Ltd., to extract up to 10,000 tonnes of ore as well as a Free Use Permit to upgrade and complete a short-haul road for ore transportation. Ore extraction is expected to commence in July 2025.

Recap of Our Last Note
Previous sampling from the Number 16 Vein at Dominion Creek yielded impressive results, including 62.1 g/t Au, 320.0 g/t Ag, 23.4% Pb, and 12.3% Zn. Processing of the 10,000t bulk sample will be conducted at NIM’s Merritt Milling Facility and combining this with Nicola’s other ore sources (Talisker Resources (TSK:TSX) and Blue Lagoon Resources (BLLG:CSE)), we anticipate that NIM’s Merritt Facility will be operating at close to full capacity by Q3/25. This should result in meaningful sales for the Company and ultimately cashflow. As more definitive production guidance is discussed, we will look to update our estimates.

This year is expected to be a transformational year for Nicola as its revenue generating businesses (Merritt Mill, Sand/Gravel Pit and Rock Quarry) will be fully operational and investors will finally get to see the result of the work performed over the last several years. Importantly, the cashflow from these operations will provide the Company with non-dilutive funds to expand capacity at the mill and continue to explore at its exploration assets, making NIM stand out amongst its peer group.