Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) has released the results of an independent underground inspection of its Treasure Mountain Silver Mine in British Columbia, revealing that the mine is in better-than-anticipated condition after roughly 13 years of inactivity. The assessment, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, indicates that the mine's infrastructure has largely remained intact, which could expedite the company's planned restart of mining operations in 2027.
The inspection found that both principal portals are accessible, significant portions of the underground development remain open, and natural ventilation is functioning. Much of the historical infrastructure is still in place, and no conditions were observed that would prevent the project from advancing to the next stage of evaluation. This news is significant for Nicola Mining and its shareholders, as it suggests that the company may be able to resume operations with less rehabilitation work than initially expected, potentially reducing both time and capital requirements.
The assessment also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could offer additional exploration opportunities. These findings could enhance the project's economic viability and provide a foundation for future resource expansion. Nicola Mining plans to proceed with a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping. This work is expected to support subsequent mine planning, ventilation design, rehabilitation, and the recommencement of mineral extraction.
CEO Peter Espig commented on the results, stating that the existing underground development, combined with Nicola's permitted Merritt milling infrastructure, could provide a disciplined and capital-efficient pathway toward renewed silver production. This strategic advantage may allow the company to leverage its existing assets to bring the mine back into production more efficiently than competitors with less infrastructure in place.
The Treasure Mountain Property, which Nicola fully owns, includes 30 mineral claims and a mineral lease spanning over 2,200 hectares. This asset adds to the company's portfolio, which also includes a 100% owned mill and tailings facility near Merritt, British Columbia, and the New Craigmont Project, a high-grade copper property adjacent to Canada's largest copper mine, Highland Valley Copper. The company's fully permitted mill can process both gold and silver mill feed via gravity and flotation processes, providing flexibility in its operations.
The positive assessment of Treasure Mountain comes at a time when silver prices have been firm, and the company is positioning itself to restart production in 2027. The findings from the underground inspection are a crucial step in de-risking the project and moving forward with confidence. Investors and stakeholders will be watching closely as Nicola Mining advances its plans, with the potential for the mine to contribute meaningfully to the company's production and revenue in the coming years.
