Nicola Mining (TSX-V:NIM) says initial assays from stockpiled material supplied by Red Eye Resources have returned gold and silver grades that could support potential processing at its Merritt Mill in British Columbia, Canada.
The update comes two weeks after the parties signed a profit-sharing agreement, under which privately held Red Eye will transport mineralised material to Nicola’s Merritt Mill for assessment and potential processing.
Red Eye subsequently provided samples from two stockpiles, totalling 47.82kg, which were sampled by Nicola geologists to determine their gold and silver grades.
The smaller stockpile measures approximately 27m by 8m by 1.5m and consists of material from a single source, while the larger stockpile measures approximately 18m by 13m by 3.5m and contains material from multiple sources.
According to Nicola, initial sampling returned an overall weighted average grade of 2.83 grams per tonne gold and 753.41g/t silver.
However, the company cautions that the sampling results should not be considered representative of the entire volume of material contained within the stockpiles.
The Merritt Mill is currently the only facility in British Columbia permitted to accept third-party gold and silver mill feed for processing, according to Nicola.
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
