Author: Atrium Research September 09, 2026
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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Nicola reported the results of an independent underground inspection at its 100%-owned Treasure Mountain silver-lead-zinc mine, as it targets a restart in 2027.
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After ~13 years in care and maintenance, the mine was found in better condition than expected, with both portals accessible.
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The inspection found no conditions preventing advancement and flagged a historical muck pile near the Level 1 portal that Nicola will sample as a potential source of near-term mill feed.
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Next steps include a geotechnical and rehabilitation assessment, plus surveying and mapping, ahead of a phased restart.
This morning, Nicola Mining (NIM:TSXV, NICM:NASDAQ) announced the results of an independent underground inspection of its 100%-owned Treasure Mountain silver-lead-zinc mine near Hope, BC, completed as the first stage of evaluation ahead of a potential restart of the past-producing operation in 2027. The inspection covered both portals, the underground workings, and surface infrastructure, and concluded the mine is in generally better condition than anticipated after 13 years of inactivity, with no conditions observed that would prevent the project from advancing to the next stage of evaluation. We are maintaining our BUY rating and our $1.50/share target price on Nicola Mining.
Mine in better condition than anticipated. The inspection found both portals still accessible and the mine largely intact, with driveable surface access and no flooding or significant collapse zones obstructing the areas reviewed. A substantial portion of the historical underground development, including the access drifts, historic stopes, raises, draw points, drill bays, sump infrastructure all remains accessible, and the workings continue to ventilate naturally. Existing power, water, and compressed air lines will require testing and may need to be replaced or upgraded. Ground support work will likely be needed ahead of any recommissioning, mainly around the Portal 2 entrance.
Existing workings add optionality. Muck material near the Level 1 portal may be residual ore from earlier mining, and once access is secured, Nicola plans to sample it as it could represent a low-cost source of early mill feed. Untested ground, partially advanced headings, and existing underground drill stations also preserve exploration upside, letting NIM build on development completed by prior operators.
Advancing Towards a Restart. The next phase includes a geotechnical and rehabilitation assessment followed by surveying and mapping, which Nicola will reconcile against historical mine plans, geological models, and production records to prioritize exploration and potential mining areas. Initial rehabilitation spend would focus on the areas of greatest operational value to support a phased, cost-effective restart, with the Company’s stated objective to first establish safe access and then recommence mining on Levels 1 and 2. The existing underground drill stations will make for lower-cost exploration as the Company sees exploration potential in the unexplored areas around the existing workings.
Our Take After 13-years of inactivity, the Treasure Mountain Silver Mine being in better-than-expected shape is a huge win for the company (the images on page 2 show the quality of the underground). We will continue to monitor the next phases of development, particularly the rehabilitation assessment which will help guide timelines going forward and the results of the muck pile sampling that could bring production forward. Production from Treasure Mountain in 2027 will be a key milestone for NIM as it builds out its network of small-scale mining operations.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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