Nicola Mining Inc. · TSXV:NIM
Nicola Mining — Investor Presentation (October 2020)
25 slides from Nicola Mining's investor presentation, October 2020
Slide 1: British Columbia Based Diverse Mining Company
TSX-V: NIM OTC: HUSIF DAX: HLI BRITISH COLUMBIA BASED DIVERSE MINING COMPANY www.nicolamining.com October 2020
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Certain statements and projections in this presentation are forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward- looking information is frequently characterized by words such as
Slide 3: Executive Summary
EXECUTIVE SUMMARY Nicola Mining Inc. (“Nicola” or the “Company”) will continue to develop its exploration assets via operational cash flow from gold concentrate production • Operational revenues / cash flow mitigates dilution • National Instrument 43-101 - Standards of Disclosure for Mineral Project
Slide 4: Capital Structure
CAPITAL STRUCTURE TSX-V: NIM Exchange / Symbol(s) FSE: HLI Share Price(1) C$0.13 Shares Outstanding(2) 253M Market Capitalization(1) C$32.9M 52 Week Low / High(1) C$0.035 / C$0.21 Cash & Equivalents Balance(2) C$500,000 Convertible Debenture(2,3) C$7.5M Management, Board and Affiliated entities acco
Slide 5: Officers and Directors
OFFICERS AND DIRECTORS Peter Espig - Chief Executive Officer / Director Mr. Espig was appointed CEO on November 7, 2013 as part of the Company’s turnaround. He has structured and raised funds for over US$2.5 billion in private equity and pre-IPOs. The former diamond driller and Goldman Sachs executi
Slide 6: Diversified Core Assets
DIVERSIFIED CORE ASSETS Nicola Mining has a solid set of assets all located in Southern British Columbia • 100% ownership of Craigmont copper mine in southern British Columbia • 10,913 hectares consisting of 22 mineral claims New Craigmont • Permitted mine site (Permit M-68) Copper • NI 43-101 on hi
Slide 7: Asset Location
ASSET LOCATION All of the Company’s assets are situated in southern British Columbia, region with rich history of copper and gold mining that are bolstered with infrastructure and transportation routes Data source: MINFILE Inventory Database. Accessed: 2019-02-25 All three assets have standalone val
Slide 8: Merritt Mill
MERRITT MILL Gold Inventory Proximal to Permitted Merritt Mill The Merritt Mill is the only facility permitted to process gold and silver from throughout the province and the Company seeks to utilize the facility as a mid-sized mine facilitator and milling hub The Merritt Mill benefits from BC’s hig
Slide 9: Merritt Mill
MERRITT MILL Fully permitted M-68 200 tpd mill + tailings storage facility situated within Nicola’s New Craigmont property ▪ Highway access and connected to power grid ▪ Over C$30M invested since 2011 ▪ Includes grinding, crushing and flotation circuits ▪ Profit share agreements in place with severa
Slide 10: New Craigmont Copper Mine Project
NEW CRAIGMONT COPPER MINE PROJECT Canadian Copper Project 10
Slide 11: New Craigmont Copper Project (Overview)
NEW CRAIGMONT COPPER PROJECT (OVERVIEW) New Craigmont mine is 100% owned and located in southern British Columbia. Historic copper mine closed because of $0.60 Cu / lb price – with the intention of reopening with stronger copper prices. The site has permitting and beneficial location in place ▪ Adja
Slide 12: New Craigmont Copper Project (Location)
NEW CRAIGMONT COPPER PROJECT (LOCATION) New Craigmont is located in a past and present prolific mining region, located adjacent to a major highway (BC Highway 8) which was built to provide transportation to the mine in 1953. 12
Slide 13: New Craigmont Copper Project (Prolific History)
NEW CRAIGMONT COPPER PROJECT (Prolific History) What History Tells Us • 1961-1982, Craigmont Mine produced 34Mt @ 1.3% Cu, both from underground and open pit mining operations • 1993-2014, Craigmont Mine became Canada’s leading producer of high-grade magnetite • Historic cut off grade of 0.7% Cu • B
Slide 14: Historical Production (890 Million Pounds in Decades)
HISTORICAL PRODUCTON (890 MILLION POUNDS IN 2 DECADES) 90 Millions 80 70 60 Copper produced (lbs) 50 40 30 20 10 0 Year 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 Data source: BC Annual Reports 1961-1979 & Craigmont Mines Annual Repo
Slide 15: Historical Focus vs Current (1)
HISTORICAL FOCUS VS CURRENT (1) Historical exploration at Craigmont focused exclusively on the association of chalcopyrite and magnetite by ground magnetometer and diamond drilling (+/- soil sampling “No ‘true’ exploration was done underground (up to 1977) although as part of ongoing ore definition
Slide 16: Historical Focus vs Current (2)
HISTORICAL FOCUS VS CURRENT (2) Our understanding of the mineralization, its source and potential has greatly changed over the past four years of exploration. Recent exploration results have intercepted porphyry-style mineralization Non porphyry related… 10 Porphyry related Cu… Averages copper grade
Slide 17: New Craigmont Copper Project (NI 43-101 Inferred Estimate)
NEW CRAIGMONT COPPER PROJECT (NI 43-101 Inferred Estimate) Company announced Technical Report was prepared in accordance with National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101“) supporting the Inferred Copper Resource for the Southern Dump and 3060 Portal Dumps The
Slide 18: New Craigmont Copper Project (XRT Sorter Upgrading)
NEW CRAIGMONT COPPER PROJECT (XTR SORTER UPGRADING ) XTR Sorter results highlighted the ability to upgrade copper grades up to the-fold at source Test Run Mass recovery Upgrade Percent Copper Recovery T5.1 15.5% 519% 80% Sample Tower T6.1 10.2% 677% 69% T1.1 20.2% 379% 77% T2.1 11.8% 603% 71% T7.1 1
Slide 19: Solid Exploration Results
SOLID EXPLORATION RESULTS Hole CC-18-02 We continue to see an increase in porphyry-style drilling intercepts Cu-Fe SKARN MINERALOGY Epidote (replacement of Recent Drilling Highlights garnet) 76m @ 1.35 % CuEq Actinolite and chlorite ▪ DDH-THU-002: 85.6m @ 1.1% Cu • September 7, 2016 news release (SE
Slide 20: Treasure Mountain Silver Mine
TREASURE MOUNTAIN SILVER MINE ➢ Level 1 Stope 2 are seen as promising ➢ Centrally located in Southern British Columbia Silver Mine Located in Southern BC ➢ Holdings consist of 51 mineral tenures comprising 21 legacy claims, 100 cell units and five Crown Grants for a total of approximately 2,850 hect
Slide 21: Current Mine Status
MINING LEVEL CURRENT 1 STOPE 2 MINE STATUS The Company has the option to reopen and mine Level 1 Stope 2 ➢ During 2012 – 2013 the Company completed a 10,000 tonne bulk sample permit on Level 1, but Stope 2 remains in situ ➢ The Company continues to review opportunities; including M&A, joint Viewing
Slide 22: Exploration Targets & Results (1)
EXPLORATION TARGETS & RESULTS (1) The true value of Treasure Mountain is not the mine itself but the exploration upside of the entire property. Exploration has provided very exciting results. MB Zone (Northern Side of Mountain): The MB Zone is located approximately 1.5 km from the Treasure Mountain
Slide 23: Exploration Targets & Results (2)
EXPLORATION TARGETS & RESULTS (2) Encouraging results during the 2019 Exploration Program was the catalyst for the expanded 2020 Exploration Program on the MB Zone 2019 Grab Sample Program Results1: • Sample 2100152: 813 grams Ag and 0.518 grams Au per tonne and 19% zinc and 4.66% copper • Sample 21
Slide 24: Investment Case
NICOLA MINING MINING LEVEL INC. 1 STOPE 2 (INVESTMENT CASE) ✓ Explore and develop promising Craigmont copper mine in southern British Columbia: ▪ Permitted Mine (M-68) with near-term start up potential ▪ NI 43 101 on historic mine waste terraces ▪ 2020 Exploration Program expected to further augment
Slide 25: Contact Information
CONTACT INFORMATION Corporate Address 3329 Aberdeen Road Lower Nicola, B.C. V0K 1Y0 Tel: 778-385-1213 info@nicolamining.com http: www.nicolamining.com 25