Nicola Mining (TSX-V:NIM) has completed processing material sourced from Red Eye Resources at its Merritt Mill in British Columbia, Canada, with concentrate assays pending ahead of planned sales.
The companies reached an agreement in August to process Red Eye’s material at Merritt, with profits from the sale of recovered precious metals to be shared between the parties.
According to Nicola, the Merritt Mill is the only fully permitted facility in British Columbia authorised to process gold and silver material sourced from across the province.
Previous assays of Red Eye’s stockpiled material returned gold and silver grades that supported proceeding with processing.
Nicola expects to recognise profits from the sale of recovered precious metals in Q4 2026, subject to final concentrate assays, sales, and applicable revenue recognition requirements.
Dominion material next in line
Meanwhile, Nicola is also preparing to transport approximately 1,300 tonnes of mineralised material from its Dominion Gold Project to Merritt for processing.
The development follows the company’s announcement in June that it was in the final stages of preparing for gold and silver extraction at Dominion.
Located in British Columbia’s Cariboo Mining District, Dominion hosts an epithermal gold-silver vein system with multiple mineralised veins exposed at surface.
Nicola began bulk sampling at Dominion last year after receiving provincial authorisation to extract up to 10,000 tonnes of material for processing.
The company holds a 75% economic interest in Dominion through a 50% land ownership position and a separate mining and milling profit-sharing agreement with joint venture partner High Range Exploration.
Additional feed from Blue Lagoon
Elsewhere, Nicola’s toll milling partner Blue Lagoon Resources (CSE:BLLG) continues to advance mine development, grade-control activities, and its production ramp-up at the Blue Lagoon mine.
These activities are expected to provide an additional source of material for processing at Merritt.
“We have advanced multiple sources of precious-metal mill feed, completed processing of Red Eye material, moved Dominion toward trucking and milling, and supported Blue Lagoon’s development and production expansion,” Nicola Mining CEO Peter Espig says.
Espig adds that while the timing and amount of revenue remain subject to assays, logistics, and sales, the company’s operational progress this year is expected to support its activities heading into 2027.
Nicola Mining is a junior mining company that maintains a 100%-owned mill and tailings facility located near Merritt, British Columbia.
Write to Jackson Chen at Mining.com.au
Image: Nicola Mining
