Skip to main content

Nicola Mining: Permitted Mill Cash Flow & Copper Porphyry Upside

CEO.CA Sep 29, 2026 15:03

Summary

Treasure Mountain reopens for mining in 2027; lead and zinc pay the operating costs, silver carries the upside.

First output comes from level 1, stop 2: 400,000 ounces of silver, 1.7 million pounds of lead, 960,000 pounds of zinc.

Craigmont's advantage is its existing mine permit, which the CEO says few copper exploration plays can claim.

Mill capacity is not the bottleneck: a $5 million Blue Lagoon investment with partner funds supports a move toward 500 tons per day.

No capital raise at Beaver Creek; cash is expected near $20 million by year-end, with strategic interest the real goal.

Key points on Nicola Mining

  • The guest says Nicola is fully committed to mining at Treasure Mountain in 2027, starting with level 1 stope 2, which holds about 400,000 ounces of silver, 1.7 million pounds of lead and 960,000 pounds of zinc; he frames the lead and zinc as covering operating costs with silver as the upside.
  • He describes Craigmont as the company's biggest asset and says 2026 drilling hit native copper very early at a target that had never been drilled, which he reads as copper trapped between the porphyry source and the cooled skarn, and he says this puts them close to a major discovery; he also stresses Craigmont already has a mine permit, which he calls rare for a copper exploration play.
  • He says the company owns 100% of both Treasure Mountain and Dominion Gold after the first 10,000 tons at Dominion, and that Dominion's potential is still being revealed as they mine and explore it in coming years.
  • On the shared mill, his argument is that mill feed is the constraint, not processing: the mill is owned 100% and can be expanded as feed grows from Treasure Mountain, Dominion and third-party tonnes.
  • He lists 2026 milestones as increased mill capacity in Q1, becoming the first Canadian company to list on Nasdaq via an ADR in April, a June porphyry system discovery, opening the Dominion gold mine in July, announcing the Treasure Mountain reopening in August, and September drilling and a Red Eye Minerals agreement; he says cash is about $10 million now, closer to $20 million by year end, and could reach $70 million in 2027.

Peter Espig's takeaways

  • Top takeaway His central thesis is that metals and mining are at the beginning of a super cycle because the industry is underinvested and countries want their own metals, mills and smelters.
  • He frames Nicola's portfolio as a single mill with multiple feeders, comparing it to a taxi company, and argues the value is in feeding the mill rather than in any one project; on that logic he treats Craigmont as the elephant and says it stands out because it is already permitted as a mine, not just an exploration target.
  • He argues British Columbia has become a better place to start and advance projects, saying more mines were permitted there in the past two years than in the prior decade, and that First Nations groups and the ministry are now better coordinated, which he says also strengthens Nicola as a permitted mill that smaller projects can use.
  • He says he wants recognition rather than capital from the conference: the goal is to put eyes and strategics on the company so that delivering on 2027 plans becomes a reason for investors to enter the open market, and he notes he is not seeking private placements.
  • On Treasure Mountain he frames the reopening as two workstreams, mining plus exploration, and says recently seen drill core looks very high grade, though assays have not yet come back.