Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) has released the results of an independent underground inspection of its Treasure Mountain Silver Mine in British Columbia, indicating that the mine is in better-than-anticipated condition after approximately 13 years of inactivity. The findings could accelerate the timeline for the planned 2027 restart, offering a potentially faster and more cost-effective route to renewed silver production.
The assessment, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, found that both principal portals remain accessible, significant portions of the underground development are still open, and natural ventilation is functioning. Much of the historical infrastructure remains in place, with no conditions observed that would prevent the project from advancing to the next stage of evaluation. This positive news suggests that the mine may require less rehabilitation work than originally expected, potentially reducing both time and capital expenditures.
The inspection also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could offer additional exploration opportunities. These findings open the door for further mineral discoveries and could enhance the mine's overall value. Nicola Mining plans to proceed with a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping. This work is expected to support subsequent mine planning, ventilation design, and the recommencement of mineral extraction.
CEO Peter Espig commented on the results, stating 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 Merritt mill, which is fully permitted and can process both gold and silver mill feed via gravity and flotation processes, is a key asset that could significantly reduce startup costs and timelines.
The Treasure Mountain Property includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares. This property, along with the New Craigmont Project—a high-grade copper property covering 10,913 hectares adjacent to Canada's largest copper mine—positions Nicola Mining as a company with substantial mineral potential. The positive assessment of Treasure Mountain is a critical step forward in the company's strategy to leverage its existing assets and infrastructure to maximize shareholder value.
The announcement underscores the importance of thorough due diligence and the value of existing infrastructure in mining projects. By utilizing the already-constructed underground workings and the nearby mill, Nicola Mining aims to minimize upfront capital and accelerate the path to production. Investors and stakeholders will be watching closely as the company advances its evaluation and moves toward the 2027 restart target. For more information on Nicola Mining, visit the company's newsroom at https://ibn.fm/NICM. The full press release is available at https://ibn.fm/HdSg9.
