Nikola Mining Company (Nasdaq: NICM; TSXV: Sleep; (FSE: HLIA) reported that it is in the final stages of preparation to begin gold and silver extraction operations at the Dominion Gold Project. The high-grade gold project is located approximately 43 km northeast of Wells and 110 km southeast of Prince George, British Columbia. Dominion’s mined material will be processed at the company’s wholly-owned Merritt Mill, the only fully permitted milling facility in British Columbia authorized to process gold and silver materials sourced from throughout the province.
In anticipation of the commencement of operations, the Company has advanced several key infrastructure, equipment and operational initiatives, while strengthening its reclamation profile through an additional $251,000 payment for reclamation requirements under Mine Code Permit MX-100000488, as well as the following: completion of the final payment for the purchase and installation of a fully furnished 14-person operations camp, including all required site amenities; Acquisition of three Caterpillar 336-07 excavators; Acquisition of Traxxon TR-EX2000 high-performance rock drill attachment; Secured a John Deere 310E hauler, hired operating crews, and engaged a prime mining contractor. It is expected that mill feed extraction will begin in the first week of July.
Peter Espegg, CEO of Nikola Mining, commented: “Dominion represents a very compelling high-grade gold asset that we believe has exceptional near-term production potential and significant long-term strategic value for Nikola. The project has consistently demonstrated strong mineralization, with vein systems remaining open in all directions and returning grades of up to 113 g/t gold (3.31 oz/t gold).
“As we transition toward extraction, we are particularly excited about the opportunity to establish Dominion as a meaningful and sustainable source of high-quality mill feed for our Merritt Mill operations. At the same time, we continue to work closely with Blue Lagoon Resources Inc., which continues to achieve significant production milestones while maintaining strong operational discipline and grade control. We believe the convergence of these developments positions Nikola for a transformative period of operational growth and increased cash flow generation.”
The Dominion Creek property consists of 9 mineral claims (55 units) totaling approximately 1,058 hectares. The property was acquired from prospector N. Kencayd by Noranda Exploration Company Ltd. In 1986. Noranda subsequently conducted geological, geochemical and geophysical surveys that culminated in an increase in the location of its territory. Between 1987 and 1990, Noranda’s exploratory program included a small geochemical silt sample survey (20 samples). Encouraged by these results, a larger soil geochemical survey was conducted (3399 samples). Noranda drilled a total of 53 shallow diamond drill holes, totaling 3,483.86 meters (average depth approximately 65.7 metres). Drilling of several concurrent Pb, Zn, Cu, Ag and Au soil geochemical anomalies led to the discovery of numerous quartz mineral veins.
Nicola Mining maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia. It has signed mining and milling profit sharing agreements with high-grade gold projects. The fully permitted Nikola mill can process both gold and silver mill feed via gravity and flotation processes.
Nikola owns 100% of the New Craigmont Project, a high-grade copper property covering more than 10,800 hectares along the southern end of the Guichon Batholith and is adjacent to the Highland Valley Copper Mine, the largest copper mine in Canada. The company also owns 100% of the Treasure Mountain Property in southwestern British Columbia, which includes 30 mineral claims and mineral leases, extending over 2,200 hectares.
