Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’)
is pleased to provide an operations update and announces the filing
of its Q3 2020 Financial Statements.
Q3 2020 Highlights
Operations
During Q3 2020, the Company made notable
progress in its previously announced accelerated development plan,
re-mobilized its workforce and re-started the processing plant at
its underground project (the “Underground Project”) on August 20,
2020. Milestones for the quarter include:
- Mill
Restart - On August 20, 2020, the Company restarted its
processing plant at the Underground Project following the temporary
suspension of copper production due to impacts of the COVID-19
pandemic. During the quarter, the processing plant continued to
improve on its performance achieving single day throughput
milestones of 4,440 tons (representing approximately 90% of design
throughput). Processing plant performance continues to improve with
recoveries increasing 10% in October when compared with
September.
-
Concentrate Delivery - During the quarter, the
processing plant processed 125,796 tons of blended material
consisting of stockpiled low-grade mineralized material and
development ore. Concentrate production in Q3 totaled 1,050 dry
metric tons (“dmt”) at 24.7% copper. The Company shipped a
combination of inventoried material from April and current quarter
production totaling 1,179 dmt at a concentrate grade of 22.4%.
October concentrate shipments increased 166% from September and the
Company continued to deliver on-spec copper concentrates to its
offtaker, with the Company shipping 1,461 dmt at a concentrate
grade of 25.5% copper during the month.
- Main
Production Shaft Equipping - The Company has completed
equipping of the Main Production Shaft. Work is ongoing to complete
the remaining loading pocket. By the third week of November the
Company plans to use the Main Shaft to transfer materials, supplies
and people, freeing the East North Vent Shaft to be used
exclusively for development ore and waste movement, with a
resultant expected increase in ore hoisting rates.
-
Lateral
Development - Lateral development
rates of the revised mine plan and hoist rates via the East North
Vent Shaft are ahead of targets. Ore grades encountered in ongoing
development continue to reconcile well to resource model grades,
and hoisted development ore grades have increased in line with the
commencement of stope development.
-
Mining - During the third quarter, the Company
hoisted an average of a 1,000 tons of material per day from the
East North Vent Shaft, which was approximately 30% better than
planned hoisting rates. The Company has initiated mining activities
in stope ore with stope development grades in October reaching over
2% copper equivalent.
-
Materials Handling - During the quarter, the
surface materials handling infrastructure has been completed and
moved into the permanent location and staged commissioning has
commenced. The Company is testing the communication system and
interactions of these sections to ensure ramp-up can be accelerated
once the underground conveyor is installed later in Q4 2020.
-
Geotechnical Update - Additional
geotechnical review and ongoing definition drilling completed in
October continues to support the Company’s mine plan which shows
production quickly transitioning to predominately larger stopes
over Q1 2021 and thereafter, supporting sustained mining of larger
stopes as previously planned. While the move to initially smaller
stopes in the Upper East South zone will further de-risk the
Underground Project and does not affect the life of mine resource,
the change has increased costs in the short-term. In light of the
additional costs associated with this change in mine plan during
the ramp-up period, management has concluded that the Company will
require additional funding over the next four months as it
completes the ramp-up process.
-
Mine Plan - Mine
planning to develop detailed production mining layouts and stope
sequencing has commenced following receipt of the updated
geological model and revised geotechnical design parameters
developed from underground infill drilling and mapping of the
development.
Mike Ciricillo, Chief Executive Officer of
Nevada Copper, stated:“We are pleased with our operations progress
in Q3 following recommencement of concentrate production in August.
The Processing Plant performance continues to deliver on-spec
concentrate with increased throughput rates, concentrate grade,
recovery, and volume. By the end of Q4 we look forward to
continuing our operations improvements and completing the materials
handling system, a key to accelerating ramp-up to commercial
production in Q1 2021.”
Open Pit Project
The Company expects to restart advancing
optimizations for its open pit project (the “Open Pit Project”)
following the current focus on ramp-up of the Underground Project.
The optimizations are expected to include further extension and
in-fill drilling as a follow-up to the last Open Pit Project
drilling program, which identified significant additional
mineralization and indicated the ore body extends beyond the
original pit boundary and remains open in multiple directions, as
well as value engineering options and trade-offs with the aim of
further enhancing project economics.
Exploration
The Company continues to evaluate its extensive mineral
landholdings at and around Pumpkin Hollow, including drilling
and/or trenching, where appropriate, and to look for opportunities
to increase its landholdings at the appropriate time. The company
also continues to review recent and historical aero-magnetic survey
data in conjunction with surface exploration to identify
prospective targets. Further to this strategy, additional ground
was staked along the eastern boundary of the Tedeboy target area.
The Company will prioritize advancing its high-priority targets in
accordance with cash availability.
Finances
- In July 2020 the
Company completed its public offering of 667,503,553 units of the
Company (the “Units”) at a price of CAD$0.15 per Unit (the
“Offering”). A portion of the net proceeds from the
Offering were used to settle in full the Company’s US$30 million
convertible loan facility that was provided to the Company by Pala
Investments Limited (“Pala”), the Company’s largest shareholder, in
connection with the Company’s refinancing transactions in March
2020. The Company also used a portion of the net proceeds from the
Offering to repay other outstanding indebtedness (including
short-term financing provided by Pala in the principal amount of
US$15.1 million).
- Since the
restart of the processing plant at the Underground Project, the
Company has recommenced concentrate deliveries and drawdowns based
on future production under its working capital facility with
Concord Resources Limited (the “Working Capital Facility”). The
Company has delivered 2,640 dmt of concentrate and made cash
repayments of US$11.3 million as at November 10, 2020 under the
Working Capital Facility. Additionally, since the restart, the
Company made drawdowns of US$13.8 million under the Working Capital
Facility based on expected future deliveries as at November 10,
2020.
- The Company is in discussions with
KfW-IPEX Bank, its senior lender, and has received a term sheet
from a third party for an additional credit line of US$20 million
to US$30 million to fund its increased cash requirements in light
of the geotechnical changes discussed above. Discussions are also
ongoing with other potential funding sources. Pala has confirmed it
will continue to provide financial support to the Company until the
end of the year, by which time the Company expects to complete a
financing. The Company will provide further financing updates in
the coming weeks. There can be no assurance that a financing will
be completed, and in the absence of sufficient financing, the
Company may not be able to continue operations.
Q3 2020 Financial
Statements
The Company has filed on SEDAR its condensed
interim financial statements and the related management’s
discussion and analysis for the quarter ended September 30, 2020.
Copies of these documents are available on the Company’s website at
www.nevadacopper.com and the Company’s SEDAR profile at
www.sedar.com.
Qualified PersonsThe
information and data in this news release was reviewed by Greg
French, C.P.G., and David Sabourin, P.E, for Nevada Copper, who are
non-independent Qualified Persons within the meaning of NI
43-101.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer
and owner of the Pumpkin Hollow copper project. Located in Nevada,
USA, Pumpkin Hollow has substantial reserves and resources
including copper, gold and silver. Its two fully permitted projects
include the high-grade underground mine and processing facility,
which is now in the production stage, and a large-scale open pit
project, which is advancing towards feasibility status.
NEVADA COPPER CORP.www.nevadacopper.com
Mike Ciricillo, President and
CEO
For further information contact:Rich Matthews,
Investor RelationsIntegrous Communicationsrmatthews@integcom.us+1
604 355 7179
Cautionary Language
This news release includes certain statements
and information that constitute forward-looking information within
the meaning of applicable Canadian securities laws. All statements
in this news release, other than statements of historical facts are
forward-looking statements. Such forward-looking statements and
forward-looking information specifically include, but are not
limited to, statements that relate to the various impacts of the
COVID-19 pandemic, mine development and ramp-up plans (including as
may be affected by the updated geological model, revised
geotechnical design parameters and the final mine plan) and the
expected, timing, costs and results thereof, ongoing needs for
additional funding, potential financings and the amount and timing
in respect thereof, and the Company’s ongoing exploration
activities and the objectives and results thereof.
Often, but not always, forward-looking
statements and forward-looking information can be identified by the
use of words such as “plans”, “expects”, “potential”, “is
expected”, “anticipated”, “is targeted”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or the negatives thereof or variations of such words and phrases or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements or information are subject to known or
unknown risks, uncertainties and other factors which may cause the
actual results and events to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information.
Forward-looking statements or information are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in the
forward-looking statements or information, including, without
limitation, risks and uncertainties relating to: the ability of the
Company to complete a new financing in a sufficient amount of funds
and within the necessary timeframe; the state of financial markets;
the impact of COVID-19 on the business and operations of the
Company; history of losses; requirements for additional capital and
no assurance can be given regarding the availability thereof;
dilution; adverse events relating to milling operations,
construction, development and ramp-up, including the ability of the
Company to address underground development and process plant
issues; ground conditions; cost overruns relating to development,
construction and ramp-up of the Pumpkin Hollow Underground Mine;
loss of material properties; interest rates increase; global
economy; limited history of production; future metals price
fluctuations; speculative nature of exploration activities;
periodic interruptions to exploration, development and mining
activities; environmental hazards and liability; industrial
accidents; failure of processing and mining equipment to perform as
expected; labor disputes; supply problems; uncertainty of
production and cost estimates; the interpretation of drill results
and the estimation of mineral resources and reserves; changes in
project parameters as plans continue to be refined; possible
variations in ore reserves, grade of mineralization or recovery
rates from management’s expectations and the difference may be
material; legal and regulatory proceedings and community actions;
the outcome of disputes with the Company’s contractors; accidents;
title matters; regulatory approvals and restrictions; increased
costs and physical risks relating to climate change, including
extreme weather events, and new or revised regulations relating to
climate change; permitting and licensing; volatility of the market
price of the Company’s common shares; insurance; competition;
hedging activities; currency fluctuations; loss of key employees;
other risks of the mining industry as well as those risks discussed
in the Company’s Management’s Discussion and Analysis in respect of
the year ended December 31, 2019 and in the section entitled “Risk
Factors” in the Company’s Annual Information Form dated May 15,
2020. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking statements or information. The forward-looking
information and statements are stated as of the date hereof. The
Company disclaims any intent or obligation to update
forward-looking statements or information except as required by
law.
The Company provides no assurance that
forward-looking statements and information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements and information.
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Apr 2023 to Apr 2024