Nicola Mining Inc. Enters Into Exploration and Material Purchase Agreement

logo_color_xl_2

October 3, 2016 | News Releases

TSX.V: NIM
NEWS RELEASE

VANCOUVER, B.C., October 3, 2016 – Nicola Mining Inc. (TSXV: NIM) (the “Company”) is pleased to announce that it has entered into an Exploration and Material Purchase Agreement (the “Agreement”) with Teck Highland Valley Copper Partnership (“HVCP”), a wholly owned subsidiary of Teck Resources Limited.

Nicola Mining Inc. owns 100% of the Thule Copper Property (the “Property”) that covers 10,084 hectares along the southern end of the prolific copper-rich Guichon Batholith.  The Property is located approximately 20 kilometres south of the Highland Valley Copper mine, the largest open pit copper mine in Canada which is also located within the Guichon Batholith.

The Company will work with HVCP to conduct an exploration program on the historic stockpiles on the Property in order to gather information regarding the grade and other characteristics of the stockpiled material.   Following the exploration campaigns, HVCP will have the right to purchase stockpile material mined by the Company.  The Company will carry out the exploration and mining program, and HVCP has agreed to reimburse the Company for certain costs related to the exploration and mining programs.

If the mining program proceeds, HVCP will to pay the Company as follows for purchased material:

Copper Price (US$/lb)*

Price per Tonne of Bought Material (C$/Tonne)

< $3.50

$0.40

$3.50-$4.50

$0.60

>$4.50

$0.80

* Average LME copper price for the calendar quarter

HVCP will purchase material on a per tonne basis, as described above.  In addition, it agrees to fund the Company for certain costs associated with reclamation and re-sloping work for areas in which stockpiles have been removed.

About the Property

The historic Craigmont Mine, which is part of the Thule Copper Property, operated as an open-pit mine by Craigmont Mines Ltd. from 1961 to 1967 and as an underground sub-level cave mine from 1967 to 1982 and is located on the southern section of the Property.  The Craigmont Mine produced approximately 34,000,000 metric tonnes of ore averaging 1.28% copper from Body No. 1 and Body No. 2.  Craigmont Mine’s historic cut-off grade was 0.7% Cu.

McElhanney Consulting Services Ltd. of Vancouver BC, an ISO 9001 (2008) certified company, flew a LiDAR and air photo survey covering approximately 108 square km of the Thule property. Using the Leica ALS70 LiDAR unit, data was captured at a ground-sampling distance of four points per metre, providing a highly accurate topographic dataset. High-resolution, 20cm pixel colour orthophoto was created for selected areas of the property.  Stockpiles are estimated to be 80-90 million tonnes.

On September 7, 2016 the Company announced results from its highly successful five-hole drill exploration program which highlighted an intersection of 1.11% copper over 85.92 metres in THU-002, through the Embayment Zone, located approximately 1 km northwest of the past-producing Craigmont Mine.

Results from the drilling program support the Embayment Zone as a fault-offset, westward continuation of the skarn zone that hosts the Craigmont deposit. A follow-up drill program will be designed to determine continuity of mineralization further west along strike and at depth from THU-002.

President and CEO, Peter Espig, commented, “We are very pleased to team with HCVP on this exciting opportunity.  The approximate 88 million tonnes of Stockpiles fed by a known historic cut-off grade of 0.7% Cu could be a mutually beneficial project to both companies by providing additional cash flow through supply of attractive mill feed to HVCP.”

Nicola Mining also announces that it has engaged Mocking Jay Inc. and Gold Stock Trades for investor relations and has issued a total of 175,000 stock options.

Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of Treasure Mountain, its high grade silver property, and a gravel pit, which is located adjacent to its milling operations.

On behalf of the Board of Directors

Peter Espig

Peter Espig

CEO & Director

For additional information please contact:

Peter Espig
Phone: (604) 647-0142
Email: peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

###

Nicola Mining Commences Drilling Exploration and Lidar Survey

TSX.V: NIM
NEWS RELEASE

VANCOUVER, B.C., June 29, 2016 – Nicola Mining Inc. (the “Company”) is pleased to announce that it has commenced a drilling program on its 10,084 hectare Thule Copper Property (the “Property”) located at the southern end of the Guichon Batholith approximately 14 km northwest of Merritt.

The drill program will consist of approximately 1,500 metres of drilling and will focus on three key targets zones: the Eric, Embayment and Titan Queen Zones. The purpose is to expand copper mineralization from previously known historic drilling and 2016 surface sampling. In addition to the three key target zones the Company hopes to prepare future drilling options on the Marb Zone, pending additional surface sampling.

Previous highlights in the 3 zones consist of the following:

  • Embayment Zone:
    • S-100 – 150 metres of 0.47% copper
  • Titan Queen Zone:
    • S-80 – 4.57 metres of 0.40% copper
    • S-81 – 11.59 metres of 0.40% copper
    • S-83 – 3.05 metres of 0.86% copper
    • 2016 sampling Trench 1 – 0.30% copper over 16 metres
    • Trench 2 – 0.56% copper over 10 metres
    • Trench 3 – 0.60% copper over 6 metres
  • Eric Zone:
    • S-86 – 3.05 metres of 0.92% copper
    • S-90 – 54.25 metres of 0.23% copper
    • 2016 sampling of the Eric Shaft – 0.52% copper over 9 metres (perimeter).

Drilling conducted in 2005 by Christopher James Gold Corp in the Embayment Zone failed to penetrate through the Kingsvale/Spences Bridge unit into the permeable Nicola Group volcanics. The Titan Queen and Eric Zones were last drill tested in the 1970’s by Craigmont Mines.

LIDAR Survey

The Company hired McElhanney Consulting Services Ltd. to complete a Light Detection and Ranging Survey (“LIDAR Survey”) over the entire wholly-owned Thule Property. The purpose of the LIDAR survey is to reveal the network of faults responsible for mineralization on the Property. The LIDAR survey consists of a fixed-wing aircraft that flies flight lines over the Property in order to generate a detailed topographic contour map and selective orthophoto, which is geometrically corrected such that the scale is uniform: the photo has the same lack of distortion as a map, for accurate ground mapping.

Property Geology

An east-northeast trending, steeply dipping, volcanic pile of Upper Triassic Nicola Group rocks that is bound to the north by the Early Jurassic-Late Triassic Guichon Creek Batholith and unconformably overlain by the Middle and Upper Cretaceous Spences Bridge Group underlies the Property.

The Property holds at least two types of mineralization described as copper-iron skarn and copper porphyry. Carbonate-rich, silicate-rich or intrusive rocks along the southern flank of the Guichon Batholith host both types of mineralization.

Several major faults cut through the property including the north-trending Lornex Fault on the west that is geologically responsible for the large-tonnage porphyry copper deposits to the north, including Highland Valley, Lornex, Bethlehem and Highmont. Faults controlling mineralization around the mine include the northwest trending east and West Embayment Faults, the Mine East Fault and the East-West Fault.

Property History

The Property covers a large area along the southern extents of the Guichon Batholith where many of the copper prospects on the Property have been intermittently explored since the 1930’s. The most important discovery to date has been the past producing Craigmont Copper-Iron mine located in the central part of the claim holdings.

Craigmont was operated as an open-pit mine by Craigmont Mines Ltd. from 1961 to 1967 and as an underground sub-level cave mine from 1967 to 1982. Over its operating life, the mine produced 34,000,000 metric tonnes of ore averaging 1.28% copper from Body No. 1 and Body No. 2. A policy decision was made by the board of Craigmont to shut down the mine in 1982, at a time when the copper price was approximately $0.60 per pound.

From 1982 to 1992, Craigmont shipped up to 60,000 tonnes of clean metallurgical magnetite per year from its stockpile to coal producers throughout North America for use in the coal flotation process. After 1992, Craigmont continued to produce a limited amount of products for the coal industry from re-worked iron fines in the tailings pond. Craigmont Mines Limited shut down its magnetite facility in 2014, after the economic grade of magnetite was exhausted.

On March 3, 2011, Nicola agreed to buy all of the outstanding shares of Craigmont Holdings Ltd. in consideration for certain cash and share payments. On November 19, 2015, Nicola acquired the remaining shares of Craigmont Holdings Ltd. for a 2.0% net smelter royalty. The Company now owns 100% of the Property.

Historical Estimates

There are currently no mineral resource estimates on the Property. Historical “non NI 43-101” resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as Body No. 3 containing a historic estimate of 1,290,000 tons (1,170,268 metric tonnes) of copper grading 1.53% copper.* This estimate assumes a 0.7% copper cut-off and a 20 foot mining width between drill sections 6565E and 8015E. The material in Body No. 3 contains mineralization primarily in silicate-rich rocks.

In addition, J.F. Bristow reported, in an internal memo dated July 22, 1985 to Craigmont Mines Ltd., a rough calculation of +60,000,000 pounds (1.6 million short tons or 1.45 metric tonnes) of +1.5% copper from an original ore estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79% copper left behind in the sub-level cave. The material is from the previously mined out No.1 Body and No.2 Body.

It should be noted that these historical estimates do not meet the requirements needed to conform to NI 43-101 standards. The Company notes that an independent QP has not done sufficient work to verify and classify the historical estimates as current mineral resources, and is therefore not treating the historical estimates as current mineral resources or mineral reserves.   For further details on the Thule copper property, see the technical report entitled “TECHNICAL REPORT on the THULE COPPER – IRON PROPERTY, Southern British Columbia, Canada”, filed on May 8, 2013 on Sedar atwww.sedar.com.

Qualified Person

The foregoing geological disclosure has been reviewed and verified by Brian May, P.Geo., a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of Treasure Mountain, its high grade silver property, and a gravel pit, which is located adjacent to its milling operations.

On behalf of the Board of Directors

Peter Espig

Peter Espig

CEO & Director

For additional information

Contact: Peter Espig
Phone: (604) 647-0142
Email: peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Nicola Mining Provides Operational Update

May 31, 2016 | News Releases

VANCOUVER, B.C, May 31, 2016 – Nicola Mining Inc. (the “Company”) is pleased to provide the following key updates on corporate operations.

The Company has completed all upgrades to its fully-permitted, modern, 200 tonne per day mill facility (the “Mill”), located 14 kilometers from Merritt, British Columbia. On April 15, 2016, the Company received the required permit amendment to its mine permit M-68 (the “Amendment”) that enables it to conduct custom milling of third party material. The Amendment allows the Company to accept mill feed from third parties and execute on milling and profit share agreements by processing material at the Mill. The Company purchased an I-3 industrial zoned property for $8,000,000 and subsequently constructed the $21.6 million Mill and a fully-lined tailings facility for $1.8 million on such property. The Mill was constructed with expansion capabilities and is supported by a 500 tonne per day crushing capacity and 1.7 kVA of hydro-power, of which the current Mill only requires 0.6 kVA and its 1,300,000 gallons per day water permit. The Company prides itself on minimal environmental impact and has installed a circulation system allowing it to reuse water from its lined tailings facility. Recent upgrades include installation of a gravity jig separation system that allows the Company to separate free gold from mill feed, as well as a tabling system that allows it to further separate fine gold from gold concentrate after floatation. The Mill is capable of producing free gold concentrate, gold flotation concentrate, and silver concentrate. The Mill is ready to recommence operations, which the Company expects to occur in June, 2016.

In connection with recommencing milling operations, the Company announces that it has received 1,879 tonnes of material from Siwash Minerals Inc. (“Siwash”). The Milling and Profit Share Agreement between Siwash and the Company was announced in a November 2, 2015 news release. The Company is currently conducting tests on the material to confirm grades.

The Company is also pleased to announce that it has entered into a Milling and Profit Share Agreement (the “GMI Agreement”) with Gavin Mines Inc. (“Gavin Mines”). Under the terms of the GMI Agreement, the Company will process approximately 5,000 tonnes of material stockpiled in Quesnel, British Columbia, with the option of processing an additional 1,000 tonnes of material located in a separate stockpile.

The Company expects to start receiving mill feed from Gavin Mines on May 30, 2016 and will commence processing the mill feed immediately after it has processed economic grade material from Siwash. The stockpile will be loaded at an estimated cost of $2.50 per tonne and transported from Quesnel to the Mill at a cost of $58.0 per tonne pursuant to a trucking contract. Under the transportation contract, the trucking company is required to deliver 1,000 tonnes to the Mill during the first week commencing May 30, 2016, and a minimum of 750 tonnes per week, until complete, thereafter.

In addition to transportation, the Company will allocate up to $75.00 per tonne for milling costs but, because the material is already stockpiled, there are no mining costs associate with the mill feed. Under the GMI Agreement, net proceeds are to be evenly distributed.

The Company is also pleased to announce that it has received the initial $175,000 contribution from its joint venture partner, 1050214 B.C. Ltd. (the “JV Partner”) pursuant to the Lower Nicola Joint Venture Agreement, which was announced in a news release on March 30, 2016. As announced, the joint venture provides the JV Partner with the option to acquire a 50% interest in the Company’s aggregate property for a consideration of $1,125,000, payable upon certain milestones being achieved.

Peter Espig, Chief Executive Officer of the Company, commented, “Over the past three years, the Company has successfully overcome numerous obstacles and achieved several significant milestones; however, perhaps none is as exciting as recommencing production operations. We continue to believe that the Mill has the potential to become a milling hub for high-grade gold and silver projects in the province of British Columbia and can maximize the net present value of mining projects by expediting start up and minimizing CAPEX. We will continue to seek value-added mining and milling partnerships as well as consolidation opportunities.”

Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of Treasure Mountain, its high grade silver property, and a gravel pit, which is located adjacent to its milling operations.

On behalf of the Board of Directors

Peter Espig

Peter Espig

CEO & Director

For additional information

Contact: Peter Espig
Phone: (604) 647-0142
Email: peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Statements

This news release contains projections and forward-looking statements that involve various risks and uncertainties regarding future events. Such forward-looking statements are based on current expectations of management and a number of risks and uncertainties and are not guarantees of future performance of the Company. These statements include statements regarding the Company’s expected processing timing and capabilities, statements regarding the milling and profit sharing agreements and statements regarding potential future plans. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the Company to effect the expanded operations; the timing of delivery of material to the Mill site; the timing and price of delivery and processing of same; and other factors beyond the Company’s control. Actual results and future events could differ materially from those anticipated in such forward-looking statements. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not assume any obligation to update any forward-looking statements in this news release should circumstances or management’s estimates or opinions change.

Nicola Mining Announces Strategic Private Placement of $164,000

May 25, 2016 | News Releases

VANCOUVER, B.C., MAY 25, 2016 – Nicola Mining Inc. (the “Company”) announces that it plans to raise up to $164,000 with strategic investors that were unable to participate in the recent Fourth Tranche Unit Financing, which the Company announced in its news release of May 2, 2016. The current financing will be on the same terms as the Fourth Tranche. The Company intends to sell up to 2,050,000 Units for gross proceeds of up to $164,000.

Each Unit will consist of one common share of the Company (each, a “Share”) and one share purchase warrant (each, a“Warrant”). Each Warrant will be exercisable into one Share at a price of $0.15 per Share for a period of two years from the date of issuance.

Proceeds from the current financing will be used for general working capital.

All securities issued pursuant to the current financing will be subject to a statutory hold period expiring four months and one day after closing of the Financing.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Phone: (604) 647-0142
Email: peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

###

Paul Johnston (Ph.D. Geological Sciences) Joins Board of Nicola Mining Inc.

May 19, 2016 | News Releases

TSX.V: NIM
NEWS RELEASE

VANCOUVER, B.C., May 19, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce that Dr. Paul Johnston (Ph.D. Geological Sciences) has joined the Board of Directors of Nicola. Dr. Johnston’s extensive experience in recognizing and enhancing value-adding exploration projects will be particularly useful as the Company looks deeper into its Thule Copper Project, as well as potential acquisitions to augment its modern processing mill located 10 km outside of Merritt, BC.

Dr. Johnston is known for improving the performance of exploration teams and devising successful exploration projects. He was most recently Principal Geologist with Teck Resources Limited, and has valuable in-depth knowledge of copper, silver, and gold mineralization. The Company’s Thule Copper Project is located near Teck Resources Limited’s Highland Valley Copper’s operations, a region in which Paul has expertise.  In addition, Paul will work with Nicola’s Project Geologist, Brian May, to review potential sources of mill feed and acquisitions. The Company feels that, given the significant CAPEX requirement and administrative complexities associated with receiving a mill site permit, there could be project consolidation opportunities in the future.

Peter Espig, Chief Executive Officer, commented, “Paul brings an immense amount of expertise and credibility to our team and project(s).  We look forward to working together closely as the Company moves forward.”

The Company also announces that it has granted 1,700,000 options at of $0.11 to directors and officers under its Stock Option Plan.

Thule Copper Project

The Thule copper property is 100% owned by Nicola and consists of 21 mineral claims and 10 mineral leases covering approximately 10,084 hectares. Carbonate rich Nicola Group volcano-sedimentary units and intrusive rocks found along the southern flanks of the Guichon Batholith underlie the majority of the property which is located approximately 30 km south of the Highland Valley Copper operation. There are two dominant styles of mineralization on the property: copper iron skarn and copper porphyry. The most important discovery to date on the property has been the past producing Craigmont copper-iron mine, located in the central part of the claims. Craigmont operated from 1961 to 1982, as an open pit-mine and as an underground sub-level block cave mine. Over its operating life, the mine produced 34,000,000 metric tonnes of ore, averaging 1.28% copper, from Body No.1 and Body No.2. Craigmont shut the mine down in 1982 due to a policy decision by the board at a time when the copper price was approximately $0.60 per pound.

For further details on the Thule copper property, see the technical report entitled “TECHNICAL REPORT on the THULE COPPER – IRON PROPERTY, Southern British Columbia, Canada”, filed on May 8, 2013 on Sedar at http://www.sedar.com.

Qualified Person

The foregoing geological disclosure has been reviewed and verified by Brian May, P.Geo., a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Nicola Mining Inc.

Nicola Mining Inc. is junior mining company listed on the TSX Venture and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold properties. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes.  The Company also owns 100% of the Treasure Mountain, its high grade silver property and a gravel pit, which is located adjacent to its milling operations.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

###

Nicola Mining Increases Land Package with the Acquisition of the Montwest Claim

Apr 29, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C. April 29, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce that it has recently added an additional mineral tenure, approximately 1280 hectares, to its Thule mineral claim package. Referred to as the Montwest claim, it is situated to the west of the southern extension of the north-south trending Lornex Fault. The claim is situated within the Lower Cretaceous Spences Bridge Group, an andesitic to rhyolitic volcanic arc belt of rocks and is contiguous with the Thule land package, bringing the total size of the land package from 8,804 hectares to 10,084 hectares. The claim is accessible by a series of skid trails.

The Montwest claim features a historic regional geochemical survey (RGS) stream sediment gold anomaly situated on Gordon Creek. Previous operators have attempted to locate the anomaly through soil and silt sampling to the northeast and south of the anomaly. Through work on its Thule claims, Nicola recently uncovered a large brown colour anomaly defined by a regional magnetic high. Reconnaissance prospecting of this colour anomaly located a zone of unexplored basaltic andesite outcrop to the northwest of the gold anomaly within a series of north to northeast trending gulleys. Basaltic andesite within the Spences Bridge Group is considered a permeable host to several precious metal epithermal occurrences and deposits throughout the Spences Bridge gold belt.

The Company is planning a small grassroots prospecting and soil sampling program to locate the source of this anomaly, which will be conducted concurrently with a diamond drill program on its historical Thule Claims, as announced in its March 3, 2016 news release.   The Company announced on January 3, 2014 that it had closed a tranche of flow through financing to help finance its 2016 Exploration Program.

Thule Property

The Thule copper property is 100% owned by Nicola and consists of 21 mineral claims and 10 mineral leases covering approximately 10,084 hectares. Carbonate rich Nicola Group volcano-sedimentary units and intrusive rocks found along the southern flanks of the Guichon Batholith compose the majority of the property which is located approximately 30 km south of the Highland Valley Copper operation. There are two dominant styles of mineralization on the property: copper iron skarn and copper porphyry. The most important discovery to date on the property has been the past producing Craigmont copper-iron mine, located in the central part of the claims. Craigmont operated from 1961 to 1982, as an open pit-mine and as an underground sub-level block cave mine. Over its operating life, the mine produced 34,000,000 metric tonnes of ore, averaging 1.28% copper, from Body No.1 and Body No.2. Craigmont shut the mine down in 1982 due to a policy decision by the board at a time when the copper price was approximately $0.60 per pound.

For further details on the Thule copper property, see the technical report entitled “TECHNICAL

REPORT on the THULE COPPER – IRON PROPERTY, Southern British Columbia, Canada”, filed on May 8, 2013 on Sedar at http://www.sedar.com

Qualified Person

The foregoing geological disclosure has been reviewed and verified by Brian May, P.Geo., a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Nicola Mining Inc.

Nicola Mining Inc. is junior mining company listed on the TSX Venture and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold properties. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of the Treasure Mountain, its high grade silver property and a gravel pit, which is located adjacent to its milling operations.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: (604) 647-0142
peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Nicola Mining Inc. Plans 1,500 m Drill Program at the Thule Property

Mar 3, 2016 | News Releases

TSX.V: NIM

VANCOUVER, B.C., March 3, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce the submission of a Notice of Work for the 2016 Thule Property drill program. Drilling will focus on at least 2 known historic zones, the Embayment Block and the WP trenches zones. Nicola plans a 1,000 to 1,500m NQ sized diamond drill program to commence this summer.
The Embayment Block was last drill tested by Christopher James Gold Corp in 2005. Three diamond drill holes (AB-1, AB-2, and AB-3) attempted to test the zone. One of the holes, AB-2, reached a depth of 159.4 metres and was believed to be close to the mineralized zone encountered in previous drill holes in the area. 20 feet of HW casing was left behind in the hole for future entry. Nicola Mining Inc. plans on re-entering AB-2. The drill hole is expected to be drilled to a depth of approximately 500 metres.

Previous drilling, undertaken while the mine was in production, produced intersections of 490 feet of 0.41% Cu; 184 feet of 0.88% Cu; and 30 feet of 2.56% Cu. These values were reported prior to NI 43-101 standards.

The WP trenches/Marb 72 zone was last actively explored by Torwest Resources in Limited the 1960’s. Previous work consisted of detailed mapping, soil sampling, magnetometer surveys and trenching. The zone was picked out by the 2012 aeromagnetic survey as a potassic high anomaly. The 2015 Exploration Program consisted of the collection of rock grab samples within the 500-metre-long trenching corridor. Mineralized structures in the zone trend north to northwest and consist of fracture controlled malachite and chalcopyrite with epidote, biotite, orthoclase feldspar, and carbonate alteration. 5 samples collected in 2015 from the trenches returned elevated copper values with the following highlights:

  • 130515-THU-004 returning 5290 ppm Cu and 5.6 ppm Ag,
  • 130515-THU-005 returning 6830 ppm Cu,
  • 130515-THU-006 returning 5760 ppm Cu,
  • 240515-THU-002 returning 3600 ppm Cu
  • 240515-THU-003 returning 1340 ppm Cu.

Approximately 2 holes between 100-300 metres will test the WP structure.

Additional drilling is being considered at the historic Titan Queen, Marb, and Eric mineral showings. Drill depths planned at these zones will range from 100 to 300 metres. Prior to diamond drilling, geological mapping and sampling is planned in order to finalize drill targets at these sites.

Previous trenching and shallow drilling from the 1970’s by Craigmont Mines Ltd. on the Titan Queen indicated short intervals of chalcopyrite and bornite mineralization associated with tourmaline veining. Grab sample 310515-THU-009 from the historic trenches assayed 9080 ppm Cu and 85 ppm Mo.

Historical shallow drilling during the 1960’s by Torwest Resources Limited on the Marb area indicated magnetite + chalcopyrite skarn mineralization. Outcrop grab samples returned the following assay results:

  • 290515-THU-004 assayed 7330 ppm Cu and
  • 290515-THU-005 assayed 2180 ppm Cu.

The Eric Zone is considered to be an eastern extension to the main Craigmont ore body and consists primarily of magnetite + chalcopyrite skarn mineralization. Historic drilling by Craigmont Mines Ltd. from the 1970’s by Craigmont mine indicated magnetite + chalcopyrite skarn mineralization. Grab sample 290515-THU-001 taken from the 1935 shaft assayed 7990 ppm Cu.

Nicola Mining Inc. would also like to correct a few points from the July 7, 2015 news release listed below:

Original 1

There are currently no mineral resource estimates on the Thule Property. Historical resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as “Body No. 3” contains a historical estimate of 1,290,000 tons of copper grading 1.53%*. The estimate assumes a 0.7% cut-off and a 20 foot mining width between drill sections 6565E and 8015E. The material in Body No. 3 contains mineralization primarily in silicate-rich rocks.

Corrected 1

There are currently no mineral resource estimates on the Thule Property. Historical resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as “Body No. 3” contains a historical estimate of 1,290,000 short tons (1,170,268 metric tonnes) of copper grading 1.53%*. The estimate assumes a 0.7% cut-off and a 20 foot mining width between drill sections 6565E and 8015E. The material in Body No. 3 contains mineralization primarily in silicate-rich rocks.

Original 2

Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Limited a rough calculation of 27,754,000 tonnes of copper grading 1.79% copper left behind in the sub-level cave*. The material is from the previously mined out No.1 Body and No.2 Body.

Corrected 2

Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Limited a rough calculation of +60,000,000 pounds (1.6 million short tons or 1.45 metric tonnes of +1.5%) copper from an original reserve estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79% copper left behind in the sub-level cave*. The material is from the previously mined out No.1 Body and No.2 Body.

The foregoing geological disclosure has been reviewed and verified by Brian May, P.Geo., a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

On behalf of the Board of Directors

“Peter Espig”
Peter Espig
CEO & Director

For additional information
Contact: Peter Espig
Contact: (604) 647-0142
peter@nicolamining.com

Cautionary Note Regarding Forward Looking Information:

This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company or Siwash such as the statements that Siwash will extract mill feed from its Monument Gold Zone Property and ship this to Nicola, that Nicola will process the mill feed into concentrate and then arrange for the sale of the concentrate to smelters and third parties, the quantity of mill feed that may be extracted under the sample permit if granted, regarding the plans for storage of the mill feed, the expected grade of the mill feed, plans for allocation of costs and profit associated with mining and milling, and Nicola’s intention to progress towards operational cash flow. There are numerous risks and uncertainties that could cause actual results and the Company and Siwash’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the parties to complete the proposed mining and milling activities as proposed or at all, that the bulk sample permit may not be granted, that the Company may not be able to successfully negotiate agreements for the sale of the concentrates, and that the mill feed may not be of a grade or quality that is sellable, and other factors beyond the Company and Siwash’s control. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, neither the Company nor Siwash assume any obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.