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• Nicola announced that it has started receiving ore from Talisker Resources and is currently undergoing pre-production preparation.
• The Company expects to reach full milling capacity (200tpd) by Q3.
• 640t of run-of-mine material have already been delivered to the Merritt Mill, with stockpiling underway ahead of processing.
• With two other sources of ore from Blue Lagoon Resources and the 10,000t bulk sample from Dominion Creek, the Company is already in the process of amending the permit to increase throughput further.
This morning, Nicola Mining Corp. (NIM:TSXV, HUSIF:OTC) announced that is has started receiving ore (gold and silver) from Talisker Resources Inc (TSK:TSX) and is currently undergoing pre-production initiatives in preparation for production commencing in the near term. The Company stated that it expects to ramp production up to full capacity in Q3 (the mill is permitted to process up to 200tpd). Additionally, NIM is already working on applying for an amendment to its permit to increase throughput further. We are maintaining our BUY rating and $0.60/share target price on Nicola Mining.
The Merritt Mill, which underwent extensive upgrades in H2/24, remains the only facility in British Columbia permitted to accept third party gold and silver ore. Nicola is also collaborating with Ocean Partners UK Limited on the sale of gold and silver concentrate generated from this ore. As stated in Talisker’s press release on May 15th, 640t of material has already been transported to the mill and stockpiled in preparation for processing in the near term.
We believe this is a pivotal moment for Nicola as it will soon turn into a long-term gold producer and has timed this moment perfectly to take advantage of elevated metals prices (gold >US$3,300/oz today). We view today’s stock price as a unique buying opportunity as many of NIM’s small producing peers have soared since reporting record revenues in the wake of the gold price surging.
Pending Production from Other Sources
This announcement reinforces our view that Nicola’s multi-source strategy is gaining momentum. In addition to Talisker’s ore, we expect Nicola to begin receiving ore from Blue Lagoon Resources (BLLG:CSE) as early as Q3/25. Blue Lagoon recently received permits for 55,000tpa of production from its Dome Mountain Mine, and Nicola is finalizing preparations to receive high-grade ore from the project. Together with the planned 10,000t bulk sample from Dominion Creek, we anticipate the Merritt Mill will drive significant revenue and cashflow for NIM.
NIM: Commencing Gold and Silver Production at its Merritt Mill
What you need to know:• Nicola announced that it has started receiving ore from Talisker Resources and is currently undergoing pre-production preparation.
• The Company expects to reach full milling capacity (200tpd) by Q3.
• 640t of run-of-mine material have already been delivered to the Merritt Mill, with stockpiling underway ahead of processing.
• With two other sources of ore from Blue Lagoon Resources and the 10,000t bulk sample from Dominion Creek, the Company is already in the process of amending the permit to increase throughput further.
This morning, Nicola Mining Corp. (NIM:TSXV, HUSIF:OTC) announced that is has started receiving ore (gold and silver) from Talisker Resources Inc (TSK:TSX) and is currently undergoing pre-production initiatives in preparation for production commencing in the near term. The Company stated that it expects to ramp production up to full capacity in Q3 (the mill is permitted to process up to 200tpd). Additionally, NIM is already working on applying for an amendment to its permit to increase throughput further. We are maintaining our BUY rating and $0.60/share target price on Nicola Mining.
The Merritt Mill, which underwent extensive upgrades in H2/24, remains the only facility in British Columbia permitted to accept third party gold and silver ore. Nicola is also collaborating with Ocean Partners UK Limited on the sale of gold and silver concentrate generated from this ore. As stated in Talisker’s press release on May 15th, 640t of material has already been transported to the mill and stockpiled in preparation for processing in the near term.
We believe this is a pivotal moment for Nicola as it will soon turn into a long-term gold producer and has timed this moment perfectly to take advantage of elevated metals prices (gold >US$3,300/oz today). We view today’s stock price as a unique buying opportunity as many of NIM’s small producing peers have soared since reporting record revenues in the wake of the gold price surging.
Pending Production from Other Sources
This announcement reinforces our view that Nicola’s multi-source strategy is gaining momentum. In addition to Talisker’s ore, we expect Nicola to begin receiving ore from Blue Lagoon Resources (BLLG:CSE) as early as Q3/25. Blue Lagoon recently received permits for 55,000tpa of production from its Dome Mountain Mine, and Nicola is finalizing preparations to receive high-grade ore from the project. Together with the planned 10,000t bulk sample from Dominion Creek, we anticipate the Merritt Mill will drive significant revenue and cashflow for NIM.
Underlying
Nicola Mining Inc.
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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