headed to production/cash flow !!!Nicola Mining Inc. has received an amendment to its M-68 mine permit. The amendment allows the company to enter into third party custom milling contracts and enables it to mill up to 200 tonnes per day at its wholly owned Craigmont mine site, located 10 kilometres from Merritt, B.C.
The company's mill is constructed on a freehold I-3 industrial zoned site that Nicola acquired for $8-million. Nicola then constructed a new $21-million processing mill and $2-million fully lined tailings facility. Nicola is capable of processing both gold and silver mill feed by utilizing gravity and floatation systems to create concentrates, and is currently considering installing ovens that will allow it to pour dore bars.
Nicola expects to start receiving material from Siwash Minerals Inc. in early May and plans to commence milling upon receipt of 1,000 tonnes. As disclosed in the Nov. 2, 2015, news release, the miner is required to use its best efforts to transport greater than 7.08738 grams per tonne gold to the company's processing facility. In addition to the miner, the company has entered into three other milling profit share agreements and continues to discuss with other high-grade gold sources. Currently, all of the milling profit share agreements are with gold-focused mining properties.
Given the complexities and costs of attaining a mill site in British Columbia, the company is positioning itself as a milling hub for high-grade gold properties located in the province. Under the amendment to permit M-68, Nicola is required to notify the chief inspector at least 10 days prior to initiating a change in mill feed from each unique mill source.
Peter Espig, chief executive officer, commented: "The amendment to permit M-68, which approves milling of third party material, is a monumental milestone. We have moved a huge step towards generating revenues and establishing ourselves as a province-wide milling hub for mining projects. I would like to thank the team, especially our chief financial officer, Warwick Bay, who has worked diligently in moving the company forward."