TSX.V: NIM
NEWS RELEASE
NEWS RELEASE
VANCOUVER, B.C., June 16,
2016 – Nicola Mining Inc. (the “Company”)
is pleased to announce that it has commenced milling operations at its 200
tonne per day mill facility (the “Mill”),
located 14 kilometers from Merritt, British Columbia. The Company has completed successful test runs
to confirm gold recovery rates and has commenced processing of material
received from Gavin Mines Inc. (“Gavin
Mines”). Terms of the Milling and Profit
Share Agreement (the “GMI Agreement”)
were announced in the Company’s news release of May 31, 2016. Under the GMI Agreement the Company will
produce both gravity and flotation concentrates that will be sold to third
parties for production of gold doré bars. The Company plans to mill the initial
amount of approximately 5,000 tonnes and will consider the option of processing
an additional 1,000 tonnes of material located in a separate stockpile.
The Company collected 62
representative samples, approximately 2 kg each, from 31 truckloads of material
for grade control prior to processing. All samples returned significant gold
grades ranging from 0.575 g/t gold to 33.6 g/t gold, with an average grade of
9.53 g/t gold. 31 of the samples collected returned values over 8 g/t gold.
Peter Espig, Chief
Executive Officer of the Company, commented, “We are very excited to have the
Mill running and commencing gold processing.
The startup has had a few delays and required adjustments; however, we
continue to move towards becoming BC’s newest high-grade gold and processor.”
The Company also
announces that it has issued 200,000 options to a key member of the technical
team.
Quality
Control
The sampling of Gavin
Mines mill feed was supervised by Brian May, P.Geo., a Consulting Geologist
with the Company, who is responsible for the sampling procedures prior to processing
at the Mill. On-site personnel at the project collected 2kg representative
samples from each truckload arriving at the Mill. Samples were labeled by the
Mill staff according to the truckload number. Samples were then analyzed by the
geological team to determine rock type and whether the material was oxide or
sulphide. The material was then given defined sample numbers, security sealed
and shipped to Actlabs (ISO 17025) in Kamloops, BC for analysis. The Company
routinely inserts standard reference material and rock blanks to ensure accuracy
and precision.
The Company also records
and documents gross weight, tare weight and net weight (in kilograms) and the
arrival time and date of all trucks shipping material to site.
Qualified
Person
Brian May, P.Geo., a Consulting
Geologist with the Company and qualified person as defined by National
Instrument 43-101, has reviewed the scientific information that forms the basis
for this news release, and has approved the disclosure herein. Mr. May is not
independent of the Company, as he is a shareholder of the Company.
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
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.
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.
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