Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) has received encouraging results from an independent underground inspection of its Treasure Mountain Silver Mine in British Columbia, indicating the asset is in better-than-anticipated condition after approximately 13 years of inactivity. The assessment, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, found that both principal portals remain accessible, significant portions of underground development are open, natural ventilation is functioning, and much of the historical infrastructure remains intact. No conditions were observed that would prevent the project from advancing to the next stage of evaluation.
This news is significant because it could expedite the timeline for recommencing mining activities, which Nicola currently plans for 2027. The company had been evaluating the feasibility of reopening the mine, and the positive findings suggest that some of the initial rehabilitation work may be less extensive than originally feared. CEO Peter Espig noted that the existing underground development, combined with Nicola's permitted Merritt milling infrastructure, could provide a disciplined and capital-efficient pathway toward renewed silver production.
The assessment also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could offer exploration opportunities. These findings could enhance the project's economic viability and provide additional upside beyond the known mineral resources. Nicola plans to advance a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping, which will support subsequent mine planning, ventilation design, rehabilitation, and the recommencement of mineral extraction.
The Treasure Mountain Property consists of 30 mineral claims and a mineral lease spanning over 2,200 hectares. Nicola Mining also owns 100% of the New Craigmont Project, a high-grade copper property adjacent to Canada's largest copper mine, Highland Valley Copper. The company's fully permitted mill near Merritt, British Columbia, can process both gold and silver mill feed via gravity and flotation processes, and it has signed Mining and Milling Profit Share Agreements with high-grade gold projects.
Investors and stakeholders will be watching closely as Nicola progresses with the next steps. The detailed geotechnical and rehabilitation assessment will be crucial in determining the full scope of work needed and the associated costs. If the mine can be restarted efficiently, it could provide a new source of silver production for the company, leveraging existing infrastructure to potentially reduce capital expenditures and shorten the time to first production.
For more information on Nicola Mining and its projects, visit the company's newsroom at https://ibn.fm/NICM. The full press release can be viewed at https://ibn.fm/HdSg9.
