Nicola Mining to restart milling at Merritt in April
2016-03-01 09:55 ET - News Release
Mr. Peter Espig reports
NICOLA MINING INC. MOVES TOWARDS COMMENCING MILLING OPERATIONS IN APRIL OF 2016
Nicola Mining Inc. plans to recommence milling operations at its Merritt property in April, 2016. Nicola's mill property is located on the historic Craigmont mines site, located in south-central British Columbia (10 kilometres west of Merritt, B.C.).
Nicola's 200-tonne-per-day mill will undergo modifications that will allow it to gravity separate fine free gold, prior to floating the remaining material in flotation tanks. Nicola's mill is situated on 900 acres of freehold land, was constructed to allow flotation expansion and is fed by a primary crushing circuit that has a 500-tonne-per-day capacity. The large mill building allows scalability for additional flotation tanks and gold screening units. Since May, 2010, the investment in the mill property consisted of $8-million for the cost of land, $21.6-million for the cost of the mill and related infrastructure, and $1.8-million for the cost of the construction of a fully lined tailings facility.
The company is also exploring options to purchase equipment that will enable it to pour dore bars on-site. Initial production is expected to commence with the processing of material from Siwash Materials Inc.'s property located in the Siwash Creek area, located approximately eight km northeast of Yale, B.C., and approximately 90 minutes from Nicola's mill property located near Merritt, B.C. The company announced the Siwash mining and milling profit share agreement in a Nov. 2, 2015, news release.
Under the Siwash agreement, the miner is required to use its best efforts to transport mill feed with greater than 7.08738 grams per tonne gold to the company's processing facility. Shipping of previously stockpiled material is expected to commence in early April.
The date of commencing production will be subject to the receipt of the required amendment to Nicola's mining permit.
Peter Espig, chief executive officer, commented: "The modifications to the mill, enabling it to accept and process gold mill feed and the ability to utilize both gravity and flotation processes that will allow it to produce dore bars and gold concentrate, are significant value-added services to our toll milling counterparties. In addition, we feel are excited about the prospects to recommence milling operations in the near future."