Nicola Mining updates Merritt Mill operations and project pipeline

Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) reported operational updates across its precious-metals processing activities at its Merritt Mill in British Columbia, according to a company statement.

The company completed processing material from Red Eye Resources Ltd. stockpiles in September and is awaiting concentrate assay results before proceeding with a sale. Nicola expects associated revenue to be recognized in the fourth quarter of 2026, subject to final assays, sales, and applicable revenue-recognition requirements, under a Milling Profit Share Agreement announced in August 2026.

At its Dominion Gold Project, located approximately 43 kilometres northeast of Wells, British Columbia, Nicola has begun arranging transport and processing of approximately 1,300 tonnes of mineralized material at the Merritt Mill. During mine development, additional gold- and silver-bearing veins were identified, though the company noted their significance remains subject to further geological evaluation and assay results.

Regarding Blue Lagoon Resources, Nicola and Ocean Partners UK Limited committed in August 2026 to provide an aggregate $10.0 million in financing to support Blue Lagoon's mine development and production expansion. Blue Lagoon has continued mine development, grade-control activities, and production ramp-up.

CEO Peter Espig stated: "These are tangible steps in our strategy to build a diversified, dependable processing platform around our permitted Merritt Mill. The work undertaken throughout the year is beginning to converge in the fourth quarter, with anticipated concentrate sales and additional processing activity providing a bridge from project development to commercial results."

Espig added that timing and magnitude of revenue remain subject to assays, logistics, and sales.

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