Nicola Mining Reports Initial Gold and Silver Assays from Red Eye Resources Stockpiles

Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) has released initial assay results from two mill feed stockpiles comprising material from Red Eye Resources Ltd., with which Nicola entered into a profit-share agreement earlier in August. Samples totaling 47.82 kilograms from stockpiles estimated at approximately 1,200 tonnes and 300 tonnes returned an overall weighted average grade of 2.83 grams per tonne gold and 753.41 grams per tonne silver.

These results are significant because they provide an early indication of the potential value contained in the stockpiles, which could eventually be processed at Nicola's fully permitted mill near Merritt, British Columbia. The company plans to proceed with laboratory simulations aimed at maximizing recovery and evaluating the economic viability of processing this material. If successful, this could generate additional revenue streams for Nicola without the need for new mining operations, leveraging existing infrastructure.

However, Nicola cautioned that the results should not be considered representative of the entire stockpiles. Buried material was inaccessible during sampling, additional material was subsequently added to the larger pile, and assay results showed high variability. This underscores the uncertainty inherent in evaluating stockpiled material and the need for further testing before any commercial decisions are made.

The announcement comes on the heels of Nicola's strategic move to enter into profit-share agreements with high-grade gold projects, as part of its business model to utilize its mill and tailings facility. The company owns 100% of the New Craigmont Project, a high-grade copper property adjacent to Highland Valley Copper, Canada's largest copper mine, and the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease spanning over 2,200 hectares.

For investors, these initial assays could be a positive signal, but the company's caution highlights the need for thorough due diligence. The full press release with more details is available at https://ibn.fm/JrBLd. For the latest news and updates on Nicola Mining, visit their newsroom at https://ibn.fm/NICM.