Nicola arranges Merritt Mill processing for about 1,300 tonnes from Dominion

Nicola Mining’s October 23 operational update covered processing at its Merritt Mill and work across precious-metals operations in British Columbia. The company said it completed processing material sourced from Red Eye Resources stockpiles in September. Concentrate assay results were still awaited before a sale. Under their August milling profit-share agreement, Red Eye may deliver qualifying material to the mill and the companies share profits equally.

Nicola said it expected revenue associated with Red Eye in the fourth quarter of 2026, but made that expectation conditional on final assays, sales and applicable revenue-recognition requirements. The update did not quantify the expected revenue; the next commercial step identified in the release was sale after final concentrate assays.

For the Dominion Gold Project, Nicola said it had initiated arrangements to transport and process approximately 1,300 tonnes of mineralized material at the Merritt Mill. Dominion lies in British Columbia. The announcement does not say that all of this material had arrived, been processed or produced saleable concentrate. It describes arrangements underway. During development and extraction, the company said additional gold- and silver-bearing veins had been identified; their significance remained subject to further geological evaluation and assays.

Dominion is about 43 kilometres northeast of Wells and 110 kilometres southeast of Prince George. Nicola had said in June that it was preparing to begin gold and silver extraction there; the October update moves the project into planning transport and milling of the mineralized material. It also reports additional gold- and silver-bearing veins observed during development and extraction, with their significance to be assessed through geological work and assays.

Nicola also said Blue Lagoon Resources continued mine development, grade-control activities and production ramp-up. It referenced an earlier aggregate C$10 million financing commitment from Nicola and Ocean Partners UK to support Blue Lagoon’s development and expansion. Those details provide context about another feed source discussed in the update, but Blue Lagoon’s operations are separate from Nicola’s Dominion material and the C$10 million is not new financing announced on October 23.

The Merritt Mill is a company-owned facility near Merritt with an associated tailings facility. Nicola says it can process gold- and silver-bearing feed through gravity and flotation circuits and is permitted to accept third-party material from across British Columbia. That infrastructure underpins the update’s sequence of feed sources: Red Eye processing is complete pending concentrate assays, Dominion transport and milling arrangements are underway, and Blue Lagoon is continuing its mine-development and ramp-up work.