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or Name
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CA



Nicola Mining Inc
Symbol NIM
Shares Issued 195,737,446
Close 2018-07-19 C$ 0.125
Market Cap C$ 24,467,181
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Nicola Mining begins drilling at New Craigmont

2018-07-19 09:53 ET - News Release

Mr. Peter Espig reports

NICOLA MINING INC. PROVIDES EXPLORATION UPDATE ON ITS NEW CRAIGMONT COPPER PROJECT

Nicola Mining Inc. has received all required permits and has commenced the 2018 diamond drilling program at its wholly owned New Craigmont project located approximately 10 kilometres west of Merritt and 20 kilometres south of the Highland Valley operation.

Following analysis of two induced polarization geophysical surveys, which were announced in news releases dated Nov. 10, 2017, and July 24, 2017, the company has finalized initial drill hole locations. Finalization of initial drill hole targets was based on a comprehensive analysis of induced polarization, mapping, historical sampling and digitalization of historical diamond drilling results. The review also highlighted the significant scale and potential of the New Craigmont project and the importance of developing a multiyear disciplined approach that incorporates several exploration techniques. Concurrently with the 2018 diamond drill program, the company will conduct additional IP, geological mapping of key target zones, and geochemical sampling of previous and new targets.

The 2018 diamond drill program will consist of approximately 5,500 metres, encompassing 10 initial holes in three sections: Craigmont Central, Craigmont West and East Promontory. In addition, the company will conduct geochemical sampling and IP ground geophysics over the North Promontory zone. The areas and the exploration strategies for each are explained later in this news release. Nicola has awarded Atlas Drilling Ltd., located in Kamloops, B.C., the contract for the 2018 diamond drill program. The two-drill program is expected to be completed in early September, 2018.

Phase 1 of the reverse circular drill program on the historic waste piles is now complete (with assays pending). Next steps, which may include phase 2 reverse circular exploration, will be determined upon review of assay results.

Craigmont West

Craigmont West is an area to the west of the Craigmont open pit and includes the Embayment, Marb and Titan Queen showings. It is bound to the east by Craigmont Central and to the south by East Promontory. This area has been, and continues to be, a significant area of focus for Nicola. Preliminary 3-D modelling of the skarn suggests the zone strikes roughly east-west and dips to the south. High-grade lenses of skarn are found intercalated with sedimentary and volcanic units encompassing a 200-metre-wide corridor with variable grades, and continue to remain open westward. Drill hole NC-2018-03 intersected 100.6 metres grading 1.33 per cent copper (as announced in the company's April 2, 2018, news release) and is located within the Craigmont West zone.

The 2018 diamond drill program includes three proposed diamond drill holes targeting the westward and down-plunge extension of the skarn (based on the geological model). Cross-sections showing the planned drill hole trace along with the modelled overburden and skarn have been produced.

Two lines located to the west of lines surveyed last year will be surveyed using ground IP and magnetics. These lines will help provide additional information about the geometry and extent of the known zone, and augment future drill hole targeting. In addition, the information will help Nicola to better understand the relationship between the southern contact of the Guichon batholith and its influence on mineralization.

East Promontory

East Promontory includes the historic Promontory Hill showing, but has been expanded to include porphyry targets identified in the 2017 IP survey. The 2018 diamond drill program includes five diamond drill holes that are targeted to examine the geophysical anomalies identified in the 2017 IP survey.

The additional two IP lines (described above) in Craigmont West will extend south into the East Promontory block as a follow-up to the 2017 IP survey and also help verify a chargeability inversion model identified in the 2005 IP survey completed by Frontier Geosciences Inc., which is described in the company's July 25, 2017, news release. Both surveys identified an unexplained chargeability anomaly in the area.

Craigmont Central

Craigmont Central encompasses the Craigmont open pit, underground mine and waste piles. As previously mentioned, a follow-up reverse circular drilling program on the waste stockpiles will be executed this year (if warranted). Two diamond drill holes have been planned to test the mineralized corridor, or halo, that encompasses the skarn deposit and associated alteration around the pit. Drilling will target shallow mineralization within the pit walls by stepping back and drilling the in situ rock.

North Promontory

The North Promontory area includes the Marb72/Gus and WP historic showings. Nicola plans to complete three north-south IP lines that will aim to correlate existing magnetic and sampling data collected in the area.

Peter Espig, the chief executive officer of the company, states: "We believe the project has a considerable amount of potential and are looking to build a long-term exploration strategy. A great deal of analytical work is the basis of the initial 10 holes, but we also recognize that new information garnered from results may influence targets later in the 2018 diamond drill program."

The company would also like to provide clarity on its April 5, 2013, news release, in which the previous president and chief executive officer incorrectly issued a statement that the company had achieved commercial production. Based on the tonnage of concentrate produced and the mill's throughput, the company had not reached commercial production.

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.

About New Craigmont

The New Craigmont project is a wholly owned copper property with an active mine permit (M-68) located within the world-class Highland Valley porphyry district. It benefits from excellent infrastructure. The property is at the corner intersection of the Nicola and Guichon batholiths. Of which, the latter is the precursor to mineralization at Highland Valley. In November, 2015, Nicola became the first group in decades to consolidate ownership of the property and has been actively conducting mineral exploration since.

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 Oct. 30, 1985, to Craigmont Mines Ltd. reported a zone known as Body No. 3, containing a historic estimate of 1.29 million tons (1,170,268 metric tonnes) of copper grading 1.53 per cent. 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 more than 60 million pounds (1.6 million short tons or 1.45 metric tonnes) of greater than 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 left behind in the sublevel cave. The material is from the previously mined-out Body No. 1 and Body No. 2.

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. Therefore, the company is not treating the historical estimates as current mineral resources or mineral reserves.

About Nicola Mining Inc.

Nicola Mining 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-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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