Nicola Mining Inc. said Oct. 3 that it signed an exploration and material purchase agreement with Teck Resources Ltd.'s Teck Highland Valley Copper Partnership unit, or HVCP, relating to the Thule copper property in British Columbia.
Under the deal, the companies will undertake an exploration program on the historic stockpiles on Nicola's Thule project to gather information regarding the grade and other characteristics of the stockpiled material.
Nicola will carry out the exploration and mining program, while HVCP has agreed to reimburse the company for certain costs related to the exploration and mining campaigns. The Teck unit will also have the right to purchase stockpile material mined by Nicola at certain prices the parties agreed upon.
HVCP will also fund certain costs associated with reclamation and re-sloping work for areas in Thule from which stockpiles have been removed.
Nicola is planning to undertake a follow-up drill program at the project after the results of recent drilling at Thule highlighted an intersection of 1.11% copper over 85.92 meters in one drill hole through the Embayment zone and supported Embayment as a continuation of the skarn zone that hosts the Craigmont deposit.