Nicola Mining Inc. (TSXV: NIM | NASDAQ: NICM) has released an operational update on its permitted Merritt Mill near Merritt, British Columbia, detailing processing progress across three separate precious-metals feed sources. The company completed processing of Red Eye Resources material in September 2026 and is awaiting concentrate assay results ahead of a sale expected in the fourth quarter. Separately, Nicola has initiated transport arrangements for approximately 1,300 tonnes of mineralized material from its Dominion Gold Project, while its Blue Lagoon financing commitment continues to support a growing production pipeline.

Key Points

  • Nicola Mining Inc. (TSXV: NIM | NASDAQ: NICM) issued a Merritt Mill operational update on October 23, 2026.
  • Red Eye Resources material processing is complete; concentrate revenue is anticipated in Q4 2026, subject to final assays and sales.
  • Approximately 1,300 tonnes of Dominion Gold Project material are being arranged for transport to the Merritt Mill; additional gold- and silver-bearing veins were identified during development.
  • Investors may be watching Q4 concentrate sales results and assay outcomes across all three project sources as indicators of near-term commercial activity.

Red Eye Processing Complete as Nicola Awaits Assay Results and Q4 Revenue

Nicola Mining completed processing of stockpile material sourced from Red Eye Resources Ltd. in September 2026 under a Milling Profit Share Agreement announced on August 17, 2026. The company is now awaiting final concentrate assay results before proceeding with a sale. The release states that associated revenue is expected to be recognised in the fourth quarter of 2026, subject to those final assays, completed sales, and applicable revenue-recognition requirements. The company did not disclose the volume of material processed or the expected revenue figure in the announcement.

Dominion Gold Project Material Headed to Merritt Mill After New Vein Discoveries

Arrangements are underway to transport and process approximately 1,300 tonnes of mineralized material from the Dominion Gold Project at the Merritt Mill. Dominion is located approximately 43 kilometres northeast of Wells and 110 kilometres southeast of Prince George, British Columbia. During mine development and extraction, additional gold- and silver-bearing veins were identified at the site. The company notes that the significance of these discoveries remains subject to further geological evaluation and assay results, and no resource estimates or production forecasts were disclosed in the announcement.

Blue Lagoon Production Ramp-Up Supported by $10 Million Financing Commitment

Blue Lagoon Resources has continued to advance mine development, grade-control activities, and production ramp-up, supporting what the company describes as an expanding pipeline of material for processing at the Merritt Mill. This progress follows Nicola's August 10, 2026 announcement that it and Ocean Partners UK Limited had committed an aggregate $10.0 million in financing to support Blue Lagoon's mine development and production expansion. The release does not specify how much of that financing had been drawn or deployed as of the announcement date.

CEO Highlights Q4 Convergence Across Multiple Mill Feed Sources

CEO Peter Espig stated that activity across multiple mill feed sources is converging in the fourth quarter of 2026, with anticipated concentrate sales and additional processing activity described as a bridge from project development to commercial results. He noted that timing and magnitude of revenue remain subject to assays, logistics, and sales. Espig characterised 2026's operational progress as providing a stronger foundation going forward, citing the Merritt Mill's permitted status and diversified feed strategy as central to the company's approach.