Final Permit Secured for 10,000-Tonne Gold and Silver Bulk Sample in British Columbia

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Nicola Mining Inc. (NIM:TSX.V) has secured the final permit required to complete a bulk sample at its Dominion Creek mineral project, a high-grade gold and silver deposit in which the company holds a 75% economic interest. The approval marks a significant milestone for the project, which has been in the permitting process since its initial submission on August 29, 2018. The final permit, issued by the British Columbia Ministry of Mining and Critical Minerals, allows Nicola and its partner, High Range Exploration Ltd., to extract and process ore at Dominion Creek until February 27, 2030, after which only reclamation activities may take place.

In addition to this permit, Nicola Mining has also been granted a free-use permit (MX-100000488) to upgrade and complete a short-haul road that will facilitate ore transportation. The company previously announced on March 6, 2025, that it had received a draft permit to extract up to 10,000 tonnes of gold and silver ore at Dominion Creek, which is located 43 kilometers northeast of Wells and approximately 110 kilometers east-southeast of Prince George.

Plans are currently underway to mobilize and commence ore extraction, with operations expected to begin in July 2025.

Alongside this development, Nicola Mining announced that it has completed a non-brokered private placement that was initially announced on February 25, 2025. While the original financing targeted gross proceeds of up to US$2 million through the issuance of 7,142,857 units at a price of US$0.28 per unit, the company determined that a smaller raise would be sufficient given its cash position. The final offering consisted of 4,038,955 units, generating gross proceeds of US$1,130,907.40. After accounting for finders' fees of US$63,827.36, net proceeds totaled US$1,067,080. The company confirmed that it does not intend to raise additional funds related to this placement.

All securities issued in connection with the financing are subject to a statutory hold period expiring four months and one day after the closing date.

Gold Tops US$3,000 as Precious and Industrial Metals Gain Amid Economic Uncertainty

Gold prices surged past US$3,000 per ounce for the first time, underscoring a historic price rally fueled by inflation concerns and shifting monetary policies. According to Kitco News on March 13, gold futures for April delivery closed at US$3,001.30 per ounce, marking a gain of US$57.90 in a single trading session. The report attributed the price movement to expectations surrounding potential Federal Reserve interest rate adjustments, with traders positioning for future rate cuts. This milestone followed a long-term upward trajectory in gold prices, which have accelerated since breaching a critical trendline in early 2023.

Copper markets also demonstrated strength, with Mining.com reporting on March 13 that Citigroup analysts expected London Metal Exchange (LME) copper prices to surpass US$10,000 per tonne within three months. The report cited tightening supply conditions and geopolitical factors, including U.S. import tariff considerations, as primary drivers of the forecast.

Atrium Research maintained its Buy rating on Nicola Mining, setting a target price of CA$0.60 per share, reflecting a 97% potential return from its then-current price.

"We think ex-US physical market tightening is likely to persist through May/June, temporarily offsetting price headwinds from broader US tariff announcements," Citigroup analysts noted. The study also pointed to declining copper output from Chile, the world's largest producer, where January production fell 24% month-over-month.

Silver markets reflected broader precious metal trends, with Rambus Chartology reporting on March 13 that silver was trading at a critical inflection point. The analysis suggested that silver had formed a bullish pattern, reinforcing expectations of sustained momentum. "Gold is already well into its second leg up of the secular bull market that began at the 2000 low, while silver is on the verge of making a new higher high," the report noted. The study linked silver's price movements to broader shifts in the U.S. dollar index, observing that a weakening dollar has historically benefited the precious metals sector.

Meanwhile, macroeconomic uncertainty continued to influence investor sentiment across commodity markets. Ahead of the Herd reported on March 13 that shifting U.S. economic policies had introduced volatility, with tariffs and economic indicators prompting renewed interest in safe-haven assets like gold and silver. The report highlighted concerns over rising government debt and inflation, with JPMorgan estimating a 40% likelihood of a recession in 2025.

"For the first time, you are getting compelling arguments to invest elsewhere," said Peter Tchir, head of macro strategy at Academy Securities, noting a shift away from U.S. assets toward alternative investments.

Advancing High-Grade Gold, Silver, and Copper Projects with Strategic Development

The final permit for Dominion Creek aligns with Nicola Mining's broader strategy of leveraging high-grade projects with operational cash flow. The company's investor presentation highlights the Dominion Creek project as a key part of its diversified portfolio, which includes the fully permitted Merritt Mill and Tailings Facility. This mill is British Columbia's only facility licensed to process third-party gold and silver material from across the province, potentially offering a cost-effective processing solution for Dominion Creek's ore.

Initial grab samples from Dominion Creek returned promising results, averaging 61.3 g/t gold and 173.7 g/t silver, supporting the project's high-grade potential. The ability to extract and process bulk samples will provide further clarity on mineralization and economic feasibility, positioning Nicola Mining to make informed development decisions.

Beyond Dominion Creek, Nicola Mining maintains a 100% interest in the New Craigmont copper project, a former producer with a history of high-grade mineralization. The company's 2023 exploration results suggest the presence of a potential porphyry copper system, further diversifying its asset base. Additionally, the Treasure Mountain silver mine remains permitted, providing optionality for future development.

With the final permit now secured and plans in motion for bulk sampling at Dominion Creek, Nicola Mining has taken a concrete step toward advancing its high-grade gold and silver interests. The upcoming ore extraction activities will be closely watched as the company progresses toward its next operational milestone.

Analysts See Strong Growth Potential as Nicola Mining Secures Key Permit

According to Atrium Research on March 13, Nicola Mining's receipt of the final permit for its Dominion Creek bulk sample represented a key milestone in advancing the company's high-grade gold and silver assets. The firm maintained its Buty rating on Nicola Mining, setting a target price of CA$0.60 per share, reflecting a 97% potential return from its then-current price. Analysts noted that the company's strategy of leveraging its fully permitted Merritt Mill & Tailings Facility positioned it favorably within the sector.

Atrium Research highlighted previous sampling results from Dominion Creek's Number 16 Vein, which returned 62.1 g/t gold and 320.0 g/t silver, reinforcing the project's high-grade potential.

The firm stated that processing the 10,000-tonne bulk sample at the Merritt Mill was expected to significantly increase facility utilization by the third quarter of 2025, leading to meaningful revenue generation. Analysts also pointed to Nicola Mining's broader strategy of maintaining non-dilutive cash flow from its sand and gravel pit and rock quarry businesses, which provided financial stability for further exploration and expansion.

In its outlook, Atrium Research emphasized that 2025 could be a transformational year for Nicola Mining as it continued to scale production and finalize additional ore processing agreements. "This should result in meaningful sales for the company and ultimately cash flow," analysts wrote, referencing the anticipated ramp-up at the Merritt Mill. The firm further noted that Nicola Mining's ability to process third-party material through its mill positioned it distinctively among its peers, offering both operational flexibility and revenue diversification.

Ownership and Share Structure

According to Refinitiv, 17.35% of Nicola is owned by the strategic entity Concept Capital Management Ltd.

9.90% is held by the institution BMO Capital Markets (Canada). 3.72% is management and insiders, with Peter Espig owning 3.60%. The rest is retail.

Nicola Mining has 171.64 million outstanding shares, 135.48 million free float shares, and a market cap of CA$39.82 million. Its 52-week trading range is CA$0.20-CA$0.40.