Nicola Mining Inc. (TSXV: NIM | NASDAQ: NICM) has announced that an independent underground inspection of its Treasure Mountain Silver Mine in British Columbia found both principal portals accessible and infrastructure in better condition than expected after approximately 13 years of inactivity. Engineering firm McElhanney Ltd. conducted the assessment, which the company says establishes a technical pathway toward a phased restart targeting 2027. Investors are watching closely as the findings suggest the mine could advance to detailed rehabilitation and exploration planning without major preliminary obstacles.

Key Points

  • Nicola Mining Inc. (TSXV: NIM | NASDAQ: NICM | FSE: HLIA)
  • Independent inspection of Treasure Mountain Silver Mine (Permit M-239) confirms both portals accessible and underground workings largely intact after ~13 years of inactivity
  • Inspection conducted July 27, 2026 by McElhanney Ltd.; next phase to include geotechnical assessment, surveying, and reconciliation with historical mine plans
  • Investors may be watching for outcomes of the detailed rehabilitation assessment and sampling results from observed muck material near the Level 1 portal

McElhanney Inspection Finds Treasure Mountain in Stronger Shape Than Anticipated

The July 27, 2026 inspection covered Portal 1 (Level 1), Portal 2 (Level 2), underground workings, and surface infrastructure. McElhanney reported no flooded workings or major collapse zones within inspected areas, and atmospheric conditions remained acceptable throughout. Access roads were passable by standard pickup truck, and natural ventilation pathways were functioning with strong airflow observed through connected raises. Existing compressed-air lines, water lines, and portions of electrical distribution infrastructure were found in place, though these systems will require assessment and potential replacement or upgrading before recommissioning.

Existing Infrastructure and Muck Material May Support Cost-Efficient Restart Strategy

McElhanney identified a significant volume of muck material in a crosscut near the Level 1 portal. The release states the material could represent broken ore from historical mining or development. Nicola intends to evaluate it through representative sampling and assaying once safe access is established; if mineralisation is confirmed, the material could serve as a readily accessible processing feed source during restart. The assessment also highlighted accessible underground drill stations and partially developed headings as potential avenues for exploration leveraging prior operators' development work.

Phased Restart Plan Links Treasure Mountain to Nicola's Merritt Milling Infrastructure

Nicola's stated plan calls for a detailed geotechnical and rehabilitation assessment as the next step, followed by surveying, mapping, and reconciliation with historical mine plans and geological models. The company describes its fully permitted Merritt milling facility — capable of processing both gold and silver feed via gravity and flotation — as a complementary asset supporting a capital-efficient restart pathway. CEO Peter Espig characterised Treasure Mountain as "an existing underground mine with considerable historical development already completed," noting the company's objective is to proceed methodically before recommencing extraction on Level 1 and Level 2.