VANCOUVER, B.C., March 3, 2016 – Nicola Mining Inc. (the “Company” or “Nicola”) is pleased to announce the submission of a Notice of Work for the 2016 Thule Property drill program. Drilling will focus on at least 2 known historic zones, the Embayment Block and the WP trenches zones. Nicola plans a 1,000 to 1,500m NQ sized diamond drill program to commence this summer.
The Embayment Block was last drill tested by Christopher James Gold Corp in 2005. Three diamond drill holes (AB-1, AB-2, and AB-3) attempted to test the zone. One of the holes, AB-2, reached a depth of 159.4 metres and was believed to be close to the mineralized zone encountered in previous drill holes in the area. 20 feet of HW casing was left behind in the hole for future entry. Nicola Mining Inc. plans on re-entering AB-2. The drill hole is expected to be drilled to a depth of approximately 500 metres.
Previous drilling, undertaken while the mine was in production, produced intersections of 490 feet of 0.41% Cu; 184 feet of 0.88% Cu; and 30 feet of 2.56% Cu. These values were reported prior to NI 43-101 standards.
The WP trenches/Marb 72 zone was last actively explored by Torwest Resources in Limited the 1960’s. Previous work consisted of detailed mapping, soil sampling, magnetometer surveys and trenching. The zone was picked out by the 2012 aeromagnetic survey as a potassic high anomaly. The 2015 Exploration Program consisted of the collection of rock grab samples within the 500-metre-long trenching corridor. Mineralized structures in the zone trend north to northwest and consist of fracture controlled malachite and chalcopyrite with epidote, biotite, orthoclase feldspar, and carbonate alteration. 5 samples collected in 2015 from the trenches returned elevated copper values with the following highlights:
- 130515-THU-004 returning 5290 ppm Cu and 5.6 ppm Ag,
- 130515-THU-005 returning 6830 ppm Cu,
- 130515-THU-006 returning 5760 ppm Cu,
- 240515-THU-002 returning 3600 ppm Cu
- 240515-THU-003 returning 1340 ppm Cu.
Approximately 2 holes between 100-300 metres will test the WP structure.
Additional drilling is being considered at the historic Titan Queen, Marb, and Eric mineral showings. Drill depths planned at these zones will range from 100 to 300 metres. Prior to diamond drilling, geological mapping and sampling is planned in order to finalize drill targets at these sites.
Previous trenching and shallow drilling from the 1970’s by Craigmont Mines Ltd. on the Titan Queen indicated short intervals of chalcopyrite and bornite mineralization associated with tourmaline veining. Grab sample 310515-THU-009 from the historic trenches assayed 9080 ppm Cu and 85 ppm Mo.
Historical shallow drilling during the 1960’s by Torwest Resources Limited on the Marb area indicated magnetite + chalcopyrite skarn mineralization. Outcrop grab samples returned the following assay results:
- 290515-THU-004 assayed 7330 ppm Cu and
- 290515-THU-005 assayed 2180 ppm Cu.
The Eric Zone is considered to be an eastern extension to the main Craigmont ore body and consists primarily of magnetite + chalcopyrite skarn mineralization. Historic drilling by Craigmont Mines Ltd. from the 1970’s by Craigmont mine indicated magnetite + chalcopyrite skarn mineralization. Grab sample 290515-THU-001 taken from the 1935 shaft assayed 7990 ppm Cu.
Nicola Mining Inc. would also like to correct a few points from the July 7, 2015 news release listed below:
There are currently no mineral resource estimates on the Thule Property. Historical resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as “Body No. 3” contains a historical estimate of 1,290,000 tons of copper grading 1.53%*. The estimate assumes a 0.7% 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.
There are currently no mineral resource estimates on the Thule Property. Historical resource calculations are recorded in internal memos and geological reports for Placer Development. An internal memo written by J.F. Bristow on October 30, 1985 to Craigmont Mines Ltd. reported a zone known as “Body No. 3” contains a historical estimate of 1,290,000 short tons (1,170,268 metric tonnes) of copper grading 1.53%*. The estimate assumes a 0.7% 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, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Limited a rough calculation of 27,754,000 tonnes of copper grading 1.79% copper left behind in the sub-level cave*. The material is from the previously mined out No.1 Body and No.2 Body.
Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Limited a rough calculation of +60,000,000 pounds (1.6 million short tons or 1.45 metric tonnes of +1.5%) copper from an original reserve estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79% copper left behind in the sub-level cave*. The material is from the previously mined out No.1 Body and No.2 Body.
The foregoing geological disclosure has been reviewed and verified by Brian May, P.Geo., a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
On behalf of the Board of Directors
CEO & Director
For additional information
Contact: (604) 647-0142 or firstname.lastname@example.org
Cautionary Note Regarding Forward Looking Information:
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company or Siwash such as the statements that Siwash will extract mill feed from its Monument Gold Zone Property and ship this to Nicola, that Nicola will process the mill feed into concentrate and then arrange for the sale of the concentrate to smelters and third parties, the quantity of mill feed that may be extracted under the sample permit if granted, regarding the plans for storage of the mill feed, the expected grade of the mill feed, plans for allocation of costs and profit associated with mining and milling, and Nicola’s intention to progress towards operational cash flow. There are numerous risks and uncertainties that could cause actual results and the Company and Siwash’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the parties to complete the proposed mining and milling activities as proposed or at all, that the bulk sample permit may not be granted, that the Company may not be able to successfully negotiate agreements for the sale of the concentrates, and that the mill feed may not be of a grade or quality that is sellable, and other factors beyond the Company and Siwash’s control. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, neither the Company nor Siwash assume any obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.