Nicola Mining to Begin Gold and Silver Production

Nicola Mining (NIM.V) on Wednesday said it started receiving gold and silver ore from Talisker Resources' (TSK.TO) Mustang Mine at its Craigmont mill in British Columbia and is currently undergoing pre-production adjustment.

Nicola and Talisker recently entered into a new milling agreement and the latter began trucking high-grade gold/silver ore to Nicola's mill site. Nicola said that it along with Talisker has begun working with Ocean Partners UK Limited on the sale of gold and silver concentrate.

The company said the production at its modern $33-million milling and processing facility is expected to ramp up and reach full capacity in the third quarter. It also said it is applying for a permit amendment to boost mill throughput.

The company also said it will attend Blue Lagoon Resources' (BLLG.CN) official opening of the its Dome Mountain Mine on July 9, and is completing final preparations to accept Dome's high-grade gold / silver ore, thereafter.

Nicola also said it is currently preparing to begin copper exploration at its New Craigmont Copper Project.

"Unlike previous milling campaigns we are excited to realize that Nicola is morphing into a steady and long term producer," said Nicola Mining's Chief Executive Officer Peter Espig. "It is rare for junior miners to reach the production pinnacle and to monetize current precious metal prices with our partners."

Shares of the company were last seen down $0.005 at $0.36 on the TSX Venture Exchange.

Price: 0.36, Change: -0.01, Percent Change: -1.37