Nicola Mining Inc. (NASDAQ: NICM | TSXV: NIM | FSE: HLIA) has announced two significant developments: the extension of its Rock and Gravel Extraction and Preferential Engagement Agreement with Lower Nicola Site Services Ltd. (LNSS) through to March 3, 2033, and the completion of its first-ever diamond drill program at the MB Zone of the Treasure Mountain Silver Project. The dual announcement signals continued revenue-generating activity at the Craigmont Mine Site alongside a meaningful exploration milestone. Investors may be watching for assay results from both the Treasure Mountain and New Craigmont programs.

Key Points

  • Nicola Mining Inc. (NASDAQ: NICM | TSXV: NIM | FSE: HLIA) issued the announcement on October 8, 2026.
  • LNSS exercised its option to extend the gravel extraction agreement, now running until March 3, 2033.
  • The 2026 Treasure Mountain drill program comprised four holes totalling approximately 800 metres at the previously undrilled MB Zone.
  • Assay results from both the Treasure Mountain silver and New Craigmont copper programs are pending and will be announced when received.

LNSS Agreement Extended to 2033, Preserving Royalty Framework at Craigmont

LNSS, an indirectly majority-owned company formed through a partnership between the Lower Nicola Indian Band Development Corporation and Infracon Construction Inc., originally entered into the agreement with Nicola Mining in March 2022. Under the commercial framework, LNSS holds exclusive rights to extract gravel and rock from the Craigmont Mine Site, located approximately 14 kilometres from Merritt, British Columbia, with Nicola receiving a per-tonne royalty on all extracted material. The extension preserves this royalty income stream and the preferential engagement provisions for competitive services provided by LNSS, offering Nicola a longer-term revenue foundation at the site.

First Diamond Drilling at Treasure Mountain MB Zone Marks Exploration Milestone

Nicola Mining reports completing four diamond drill holes totalling approximately 800 metres at the MB Zone — a northeast-southwest-trending quartz-sulphide vein system identified through prior surface mapping and geochemical sampling. The company states this constitutes the first-ever subsurface drilling of this target. Visual examination of drill core has identified intervals of intense sulphide mineralisation, including pyrite, pyrrhotite, and sphalerite. The company emphasises these observations are preliminary and not a substitute for analytical results. Geological logging, core sampling, and laboratory preparation for multi-element analysis are now underway.

Assay Data to Refine Geological Model Across Both Projects

Once received, assay results from the Treasure Mountain 2026 program will represent the first subsurface geochemical data from the MB Zone, which the company says will be critical in evaluating the scale, continuity, and mineralogical character of the system. Separately, assay results from the 2026 New Craigmont copper drilling program are also pending. The technical disclosures in the announcement were reviewed and approved by Will Whitty, P.Geo., Vice President of Exploration and a Qualified Person under National Instrument 43-101. The immediate share price impact was not clear from available public information.