NIM news Nicola starts shipping concentrate, signs off-take deal
2016-08-09 17:46 ET - News Release
Mr. Peter Espig reports
NICOLA MINING COMMENCES SHIPPING OF GOLD AND SILVER CONCENTRATES
Nicola Mining Inc. has commenced shipping concentrate and has entered into an off-take agreement with MRI Trading AG (the buyer), a company headquartered in Switzerland and a subsidiary of CWT Group, a leading global logistics and commodity marketing company. CWT Group employs approximately 6,000 people and has sales of approximately $10-billion annually.
During the week of Aug. 1 through Aug. 6, 2016, the company shipped 111.28 metric tonnes (104 dry metric tonnes based on average moisture content of 6.56 per cent) of concentrate to the buyer's warehouse for final sale. The company engaged ISO 17025-accredited ALS Environmental to conduct 70 analyses of the concentrate prior to shipping.
Average grading of the 104 dry tonnes concentrate was 3.243 ounces of gold and 18.1 ounces of silver, for approximately 337 ounces of gold and 1,877 ounces of silver. Final grades confirmation will occur after processing from the smelter.
The company will continue to ship concentrate during the week starting Aug. 8, 2016.
The material currently being processed by the company is from Gavin Mines Inc. Terms of the milling and profit share agreement were announced in the company's news release of May 31, 2016. Under this agreement, the company will produce both gravity and flotation concentrates that will be sold to third parties for production of gold dore bars.
The company and Gavin Mines expect to ship an additional 1,000 to 1,500 tonnes of material located near the Dome Mountain mine upon receipt of the first payment. The Dome Mountain mine is located approximately 38 kilometres due east of the town of Smithers in northwest British Columbia, Canada.
Peter Espig, chief executive officer of the company, commented: "We continue to make great progress as a company, and credit needs to be given to the entire Nicola team. Though this is a significant milestone, we are fully cognizant of the importance continued hard work that will be required in the future. We are about to conduct due diligence on a new opportunity and continue to monitor silver prices as the latter augments the value of our fully owned Treasure Mountain silver mine."