Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF)
(“
Nevada Copper” or the
“
Company”) is pleased to provide an update on its
development objectives for its Pumpkin Hollow project.
The Company’s updated development objectives
reflect internal studies regarding project optimization and
expansion options, as well as the evolution of the copper market.
These development objectives aim to further demonstrate the
potential of Nevada Copper’s large strategic land holding and
organic pipeline (see Figure 1).
Nevada Copper’s latest corporate presentation
can be accessed at the Company’s website at
www.nevadacopper.com.
“We are pleased to outline our 2021 development
objectives,” stated Mike Ciricillo, Chief Executive Officer. “While
remaining focused on safely ramping up the underground mine to full
capacity, our team is also looking ahead at growth initiatives. We
are fortunate to have such growth opportunities within the Pumpkin
Hollow project district, including one of the few fully permitted,
large-scale copper projects in North America today. Our strategic
landholding with multiple copper targets provides an organic growth
pipeline, allowing us to leverage our knowledge of the region and
highly capable and dedicated team.”
HIGHLIGHTS OF THE DEVELOPMENT
OBJECTIVES
- Prioritized development
objectives to advance Nevada Copper’s three key growth
opportunities: º
Optimization and expansion of the fully permitted Open Pit
Project º Exploration of the
Company’s multiple near-mine targets
º Expansion and extension of the producing underground
mine
- Open Pit
Advancement: º Internal
studies indicate optimized project scaling has potential to
significantly improve project economics, including a concurrent
phase 1 and phase 2, plus potential larger ultimate production
scale º Infill and extension
drilling with aim to bring newly defined mineral inventory into
reserves – Conversion of known inferred resources also has
potential to further improve project economics
º The Company expects to release a resource and reserve
update following drilling
- Property
Exploration: º Property
has been further expanded to the east, adding multiple
targets º Geophysical surveys have
identified multiple new targets º
Drilling plans defined to follow-up on high-potential targets
- Underground
Future Extension: º
Inferred conversion: Significant additional inferred resources to
be in-filled as underground mining advances into new zones
º Exploration: Multiple underground mine
extension targets to be further evaluated, including a new
potentially large target to the east of the main shaft that is
previously untested º Expansion:
Future expansion potential to be studied post achievement of
steady-state production
FURTHER DETAILS OF DEVELOPMENT PLANS
Open Pit Advancement
One of the only fully permitted copper projects
of scale in North America, with potential to further increase
deposit size and project production scale.
Optimized Project Scale
Since the publication of 2019 Open Pit
Pre-Feasibility Study (“PFS”), multiple project scale options have
been evaluated, indicating substantial upside to project economics
through larger scale options.
The development case presented in the PFS
assumed a 37,000 tons per day (“tpd”) initial stage with an
expansion to 70,000 tpd six years later, and a pit shell which was
designed to maximize IRR at US$2.50/lb copper.
Internal trade-off studies indicate significant
potential value upside from larger scale options:
- Going directly
to 70,000 tpd in a single stage may enhance project economics by
increasing the initial production profile.
- In response to
recent successful drilling and the improved copper market
fundamentals, the Company will review optimized pit shell
designs.
Further Extension and Infill Drilling
Further drilling following-on from the highly
successful 2018 open pit drill program is required to both:
- Seek to convert
inferred open pit resources into measured and indicated category.
There are currently 197 million lbs Cu of in-pit inferred
resources, the successful conversion of which is expected to
improve economics.
- Continue to
extend the Northern Extension and Connector Zones. The recent open
pit drill program both converted in-pit waste to ore and extended
the mineral deposit boundaries with the ultimate size of the pit
yet to be defined (see Figures 2 and 3).
Resource and reserve update
After completing the planned open pit drilling,
the Company intends to update its open pit resource and reserve
estimates. If the drilling is successful in converting waste to
ore, the Company will aim to increase copper resources, which could
further improve project economics.
Property Exploration
Pumpkin Hollow comprises a large property with
multiple known copper deposits and underexplored targets
(see Figure 4).
During 2020, the Company continued to
consolidate high potential targets contiguous to its property
boundaries. This follows the recent aero-magnetic survey undertaken
by the Company, which is the first to be undertaken since the 1960s
(see Figure 5).
The Company has increased the property position
by approximately 38%, from approximately 17,600 acres to over
24,300 acres, since 2018 with a successful surface exploration
program.
Drill targets have been defined, including:
- Porphyry
target: Initial deep holes in the potentially large
porphyry target to the east of the Company’s property
- Black
Mountain: Detailed mapping, sampling and recon drilling of
the skarn target recently added to the southeast of the Company’s
property
- Mountain
View: Detailed mapping, sampling and recon drilling of the
skarn target recently added to the northeast of the Company’s
property, which also includes old mine workings
-
Tedeboy: Further trenching of the Tedeboy skarn
and iron ore copper gold target and outcropping of mineralization
as previously reported
Underground Mine
Mine being ramped-up with extension and expansion
opportunities.
Resource to reserve conversion:
The underground mine resource includes some
636,000,000 lbs Cu of inferred resources located in close proximity
to the underground deposit mining zones. As mining advances and
opens up additional underground drill access points, the Company
looks to continue to undertake infill drilling with the aim of
converting inferred resources into measured and indicated over time
(see Figure 6).
Exploration of underground extension targets:
There are multiple identified extension targets
located around the underground orebodies which require follow-up
drilling to further evaluate extensions to mining areas. In
addition, the recently completed geophysical surveys have
identified a potentially large new target to the east of the main
shaft, in an area previously untested by drilling (see
Figure 7).
Project Expansion
The underground mine main shaft was originally
constructed with a design capacity that exceeds the currently
planned mine production rates. Following achievement of sustainable
steady-state production, the Company expects to continue to
evaluate future opportunities to leverage the original shaft design
capacity and potential expandability of mill throughput with the
aim to expand long-term production rates.
Timeline and Next Steps
The Company anticipates that the development
work described above will commence in 2021 after the completion of
the ramp-up of the underground mine and will continue beyond year
end. The work is expected to be completed in stages according to
the Company’s strategic priorities at the time and will be subject
to the availability of the Company’s cash resources.
A Media Snippet accompanying this announcement
is available by clicking on the image or link below:
Figure 1 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/8572aea2-5b24-4591-95dd-821a8e7a2c13
Figure 2 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/304e6106-7799-4341-82d2-e97e38e8a159
Figure 3 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/40cb4f62-9556-41a7-a9b4-a9f8b0f2142a
Figure 4 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/f12de243-1b7a-426f-b27f-be5dbeacfb9e
Figure 5 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/fcd22209-20aa-4767-8a1e-769b242b7828
Figure 6 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/37d6fe92-1a42-4964-8885-492c68c5bff9
Figure 7 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/7927df4c-9082-43e3-a384-b4316e5244ee
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+1 604 757 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 mine development plans,
production and ramp-up plans and the expected timing and results
thereof, exploration activities, and updates to resource and
reserve estimates.
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 the ramp-up of the Pumpkin Hollow underground
mine within the expected cost estimates and timeframe; requirements
for additional capital and no assurance can be given regarding the
availability thereof; the impact of COVID-19 on the business and
operations of the Company; the state of financial markets; history
of losses; 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;
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.
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