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NIM: Operational & Exploration Update + Closes Financing

What you need to know:
• Nicola announced an operational and exploration update on its 2024 drill program.
• NIM made a deposit for a Notice of Work and Reclamation Program at the Dominion Creek Project, which is an important milestone in obtaining the final permit for a bulk sample in 2025.
• NIM completed a flow-through private placement of 1.6M shares at $0.335/share.

This morning, Nicola Mining Corp. (NIM:TSXV, HUSIF:OTC) provided an operational and exploration update on its 2024 drilling program as well as announced the closing of its flow-through non-brokered private placement. The Company has completed 4,872m across 14 holes at its New Craigmont Copper Project, near Merritt, B.C. We are maintaining our BUY rating and $0.60/share target price on Nicola Mining.

As previously announced, the first phase of the 2024 exploration program at the never-before-drilled West Craigmont-WP target totalled ~1,829.7m, with the results reported on August 30th. The second phase targeted the unexplored MARB-CAS Zones, both of which are large zones ~3.5km in diameter. This drilling was focused on testing and developing the mineralization beneath the two outcrops at the MARB Zone and CAS Zone (Figure 1). The third phase, stepped out from the MARB-CAS Zones towards the Embayment Zone to see if there was a continuation of mineralization (Figure 1). NIM is currently finalizing core cutting which will then be sent to the lab for analysis. Results from the lab are not expected to be returned until the new year.

We look forward to seeing the results from this program, as the area shows significant potential to support expanded drill campaigns and the discovery of a sizeable deposit. The presence of the historic high-grade copper mine on the property as well as Nicola’s neighbours who hold tier-1 assets (Teck Resources’ Highland Valley Copper Mine, adjoining New Craigmont to the north and New Gold’s New Afton Mine north of Highland Valley), further reinforces our confidence in the probability of discovering a legitimate copper asset. Additionally, as a brownfields project, the risks associated with development and permitting are minimized.

Also in today’s release, the Company announced that it has made a deposit of $137,700 on behalf of itself and High Range Exploration Ltd. for a Notice of Work and Reclamation Program at the Dominion Creek Gold-Silver Project. This is an important milestone in obtaining the final permit for a bulk sample in 2025. As a reminder, Nicola owns 75% economic interest in the Dominion Creek project and is planning on processing the bulk sample at its Merritt Mill facility. We view this news as positive as it will provide another revenue stream for the Company while also highlighting to investors the many levers Nicola has to pull to increase cashflow and minimize shareholder dilution.