Mr. Peter Espig reports
NICOLA MINING PROVIDES UPDATE ON PLANS FOR THE 2018 EXPLORATION PROGRAMS AT THE NEW CRAIGMONT PROJECT, BRITISH COLUMBIA
Nicola Mining Inc. has provided an update on the 2018 exploration plan at the company's 100-per-cent-owned New Craigmont project, located near Merritt, B.C.
Nicola's geological team is finalizing the 2018 exploration plan, which will comprise four drilling programs and a field sampling program:
- Waste piles -- reverse circulation drilling;
- Promontory Hill -- diamond drilling;
- Craigmont Central -- diamond drilling;
- Craigmont West -- diamond drilling;
- Marb zone -- mapping and channel sampling.
The finalized plan and a schedule will be released shortly upon completion.
2018 waste dump reverse circulation drilling
During Craigmont mine's operating life between 1961 and 1982, an estimated 34 million tonnes of ore were mined at an average grade of approximately 1.28 per cent copper. Due to falling copper prices, the mine halted operations with the understanding that it could be reopened in the future. The Bristow report highlights that the mine was closed, leaving behind an estimated 54.1 million tonnes mineralization at 0.42 per cent copper surrounding the historical open-pit deposit and 27,754 tonnes grading 1.79 per cent copper left in the underground section. The report also highlights a historical cut-off grade of 0.7 per cent, which is above cut-off grades currently applied at mines in British Columbia that can be as low as 0.15 per cent.
Waste rock from Craigmont mine activities (not processed through the mill) has been stockpiled in terraces immediately adjacent to the historical pit and is inside the company's active mine permit (M-68). The size of these stockpiles is estimated to be 80 million to 90 million tonnes.
On Sept. 26, 2017, the company announced initial reverse circulation drilling results that averaged 0.24 per cent copper on material located at the 3060 portal waste pile. A lower cut-off grade is expected for this material given that mining costs have already been incurred.
A notice of deemed authorization (NDA) has been approved for reverse circulation drilling of the waste stockpiles. The drilling program will test grade variability, stockpile geometry, rock density and other factors used for examining economic viability. A total of 115 drill holes for approximately 3,400 metres of drilling have been proposed based on cursory mapping and reconnaissance.
The program has been divided into two phases. Phase 1 will comprise an initial pass of 20 drill holes averaging a depth of 30 metres. The results of phase 1 will then be reviewed to establish a scope of work for phase 2 and the remaining 95 holes. The intent is to produce a mineral resource estimate later this year.
Nicola recently awarded JR Drilling of Cranbrook, B.C., with the contract for reverse circulation drilling and expects the program to commence in May.
2018 diamond drilling
Nicola's geological staff have been on site at the New Craigmont property preparing for this year's diamond drilling program. With the extensive volume of historical data and multiple prospective targets, the company decided to invest the time and effort into interpreting and modelling the data such that the drill targets are optimized using all available resources and information. Nicola's geological team is currently digitizing all available historical data to produce a 3-D geological model for interpretation and drill hole targeting.
Promontory Hill drilling
On July 24, 2017, Nicola released the results of an induced polarization (IP) geophysical survey in the Promontory Hill area. Based on these results, Nicola applied for a notice of work (NOW) in December, 2017, requesting approval to drill test this target. The NOW is being processed and Nicola is following up regularly on the status with the Ministry of Energy, Mines and Petroleum Resources. Once the NOW permit is approved, Nicola will finalize the drilling scope of work and drilling schedule.
Craigmont Central drilling
A notice of deemed authorization (NDA) has been approved for the Craigmont Central drilling program. This program is being designed to target mineralization in the alteration zone, proximal to the historical Craigmont copper skarn orebody. Historical drill hole data are being reviewed and interpreted to determine optimal targets. A detailed scope of work will be released upon finalization, prior to execution of the program.
Craigmont West drilling
Nicola is currently compiling the results from the recent drilling at Craigmont West with the objective of creating a 3-D geological model. This model will be utilized for planning a follow-up drilling program later this year. Along with the Promontory Hill locations, a notice of work was submitted for additional drill holes at Craigmont West and is currently under review. There is also a valid permit in place to continue drilling on formerly approved locations.
Additional to the reverse circulation and diamond drilling programs described herein, the company will continue to conduct exploration activities on other identified targets that may include geological mapping, outcrop sampling and IP surveys.
Scientific and technical information
All information of a scientific or technical nature contained in this document, including sampling, analytical and test data, has been reviewed and approved by Kevin Wells, PGeo, a consulting geologist to the company. Mr. Wells is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
There are currently no mineral resource estimates on the New Craigmont project. 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 Oct. 30, 1985, to Craigmont Mines Ltd. reported a zone known as body No. 3 containing a historical estimate of 1.29 million short tons (1,170,268 metric tonnes) of copper grading 1.53 per cent copper. This estimate assumes a 0.7-per-cent-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.
Additionally, Mr. Bristow reported, in an internal memo on July 22, 1985, to Craigmont Mines, a rough calculation of over 60 million pounds (1.6 million short tons, or 1.45 metric tonnes) of over 1.5 per cent copper from an original ore estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79 per cent copper left behind in the sublevel 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 qualified person 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 titled "Technical Report on the Thule Copper-Iron Property, Southern British Columbia, Canada," filed on May 8, 2013, on SEDAR.
About Nicola Mining Inc.
Nicola Mining is in the process of recommencing mill feed processing operations at its 100-per-cent-owned state-of-the-art mill and tailings facility, located near Merritt, B.C. It has already signed four mill profit share agreements with high-grade gold producers. The fully permitted mill can process both gold and silver mill feed through gravity and flotation processes. The company also owns 100 per cent of Treasure Mountain (its high-grade silver property) and an active gravel pit that is located adjacent to its milling operations.
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