VANCOUVER, British Columbia, Nov. 08, 2017 (GLOBE NEWSWIRE) -- Nicola Mining Inc. (TSX-V:NIM) (the “Company” or “Nicola”) is pleased to announce that it has entered into a Mining and Milling Profit Share Agreement (the “AMA Agreement”) with AMA Gold Exploration (“AMA” or the “Miner”). AMA recently received its bulk sample permit allowing it to extract an initial 10,000 tonnes from the Dancer 3 Mineral Claim Tenure, located in the Sechelt Peninsula, Vancouver Mining Division Region. Nicola is the only mill site in British Columbia in which the entire facility and tailings area is owned freehold and is the only mill permitted to accept gold and silver mill feed from throughout British Columbia.
Under the AMA Agreement, the Miner plans to ship mill feed containing a minimum grade of 12.44 (0.4 oz.) grams per tonne gold. The 2011 BC Geological Survey Assessment Report 32343, written by David St. C. Dunn, P.Geo., highlights that the property has paved access and hole DDH-JR-9 intersected 2.74 metres assaying 28.02 g/t gold and 19.4 g/t silver at 8.2 metres down hole. The Miner plans to focus on easily reachable material located near surface and has been working on the property for years.
Under the AMA Agreement, the Miner will control revenues for the sale of gold and silver concentrate and reimburse cost associated with production. Operating profit will be equally distributed between Nicola and AMA.
Nicola has recently completed approximately $1.0 MM in upgrades to the mill to enhance production, which is expected to commence in Spring of 2018. On April 6, 2016, the Company announced that it had entered into a Long-Term Milling and Profit Share Agreement (the “LT Agreement”) with Gavin Mines. It was subsequently announced on May 4, 2017 that the property has 135,131 tonnes of probable mineral reserve grading 11.2 grams Au and 100.8 grams Ag per tonne.
