(Kitco News) – Nicola Mining (TSXV: NIM) announced Friday that it has commenced processing of gold and silver mill feed at its mill, located near Merritt, British Columbia.

The company said it will produce a gold and silver concentrate that will be purchased by Ocean Partners, a company that provides global trading services to miners, smelters, and refiners.

Crushing of mill feed, which was transported to the site by Blue Lagoon Resources (CNSX: BLLG), commenced on July 2, 2021, after having accumulated a stockpile of approximately 1500 tonnes, the company added.

Nicola Mining has the milling and smelting profit share agreement with Blue Lagoon, according to which Blue Lagoon will transport gold and silver mill feed from its Dome Mountain gold-silver mine to Nicola Mining’s mill for further processing.

Nicola Mining noted that it has completed approximately $2.0M in upgrades at its approximate $30.0M facility, which is permitted to process approximately 200 tonnes per day (up to 70,000 tonnes per year). The company’s wholly owned Craigmont mill was constructed with ample room for expansion and is the only site in BC permitted to accept high-grade gold and silver mill feed from throughout the province.

Chairman Frank Hogel commented, “Behind the scenes, it has been an incredible amount of work to commence production. I would like to congratulate the team on the momentous achievement.”

Nicola Mining is a junior mining company that maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia. The fully-permitted mill can process both gold and silver mill feed via gravity and flotation processes. The company also owns 100% of the New Craigmont project, a high-grade copper property, and an active gravel pit that is located adjacent to its milling operations.