Nevada Copper Provides Operations Update; Announces Filing of Q1 2021 Financial Statements and MD&A
May 17 2021 - 09:07PM
Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF)
(“
Nevada Copper” or the
“
Company”) today provided an operations update and
announces filing of its Q1 2021 Financial Statements and the
related management’s discussion and analysis.
Q1 2021 Highlights
Operations
- Mining
of First Stope: The Company successfully initiated stope
mining in Q1 with the first stoping area carrying an average grade
of 2.5% CuEq. Lateral development continued to ramp-up in the
quarter at the Company’s underground mine at its Pumpkin Hollow
project (the “Underground Mine”). As previously announced,
development progress has been temporarily slowed in the past few
weeks due to cautious progress through a water bearing dike with
completion expected in the coming weeks.
- Mine
Hoisting: Following completion of the Main Shaft material
handling system in Q4 2020, the Company achieved a peak daily
hoisting rate of over 3,000 tons by February 2021 at the
Underground Mine and has achieved a hoisting rate equivalent to
5,000 tons per day (“tpd”) on a shift basis demonstrating that the
mine hoisting system is capable of functioning at design
specifications. In Q1, the Company completed significant electrical
upgrades to provide sufficient power for additional production
equipment and ventilation in support of ramp-up at the Underground
Mine. As previously reported, certain commissioning items that
constrained hoisting rates early in the quarter were rectified.
With the installation of additional ventilation as planned and
completion of dike grouting in the coming weeks, the Company
anticipates sustainable production of 3,000 tpd by the end of Q2
and continuing to ramp-up further to steady state production.
-
Ventilation Expansion: To date, the Company has
completed the construction of the fan bulkheads and is currently
installing the two remaining underground ventilation fans to be
completed as scheduled this month. The surface ventilation fans
planned for installation in Q3 2021, may now arrive at site a few
weeks later than planned due to extended shipping times arising
from COVID-19 related delays. Consequently, it is expected that the
commissioning of the surface fans will not be completed until Q4
2021, which is anticipated to delay the achievement of full steady
state production of 5,000 tpd by a similar period.
-
Processing: There were significant improvements
made to the processing plant performance and recoveries during the
quarter. The Company achieved a weekly average of 4,700 tpd and a
maximum daily milling throughput of 5,000 tpd during March, while
batch processing ore. 119,000 tons of ore was processed through the
concentrator in Q1. Approximately 3,173 tons of concentrate was
produced at a 24% average copper grade for Q1 and reaching 26%
average copper grade in March. Recoveries improved from 82% in Q4
2020, to recovery levels above 90% in 2021.
“I am pleased with the progress achieved in Q1
at our underground mine and the dedication of our team,” stated
Mike Ciricillo, Chief Executive Officer of Nevada Copper. “The
operation made significant progress through the ramp-up during the
first quarter, and we look forward to the interim milestone of
production rates of 3,000 tpd expected in June, 2021 and continuing
our ramp-up to steady state production.”
Open Pit and Property Exploration Plans
- During Q1 the Company released its
property development objectives, including:
- Open Pit:
- Follow-up on internal studies which
indicate optimized project scaling has potential to improve project
economics, including a concurrent phase 1 and phase 2, plus
potential larger ultimate production scale; and
- Plans to undertake infill and
extension drilling with aim to bring newly defined mineral
inventory into reserves, providing the potential to further improve
project economics, followed by release of a resource and reserve
update.
- Exploration:
- Plans to follow-up on new
exploration targets added through the further expansion of the
Company’s properties to the east and analysis of geophysical
surveys.
- Underground Future
Extension:
- Additional inferred resources to be
in-filled as underground mining advances into new zones;
- 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; and
- Study of future expansion
potential.
Finance Updates
- During 2021, the
Company completed certain financing transactions, including:
- The Company completed a public
offering of units for aggregate gross proceeds of approximately
C$38 million and concurrent private placement for aggregate gross
proceeds of approximately C$13.1 million.
- The Company also entered into a
credit facility with Pala providing for US$15 million, plus a
further US$15 million accordion which Pala has confirmed will be
made available to the Company as required (the “2021 Credit
Facility”). The Company has drawn the full US$15 million under the
original 2021 Credit Facility and US$7.5 million under the
accordion feature.
- Pala has further confirmed it will
provide up to an additional US$10 million to the Company through an
increase to the 2021 Credit Facility or other form of financing as
may be agreed with the Company, in order to provide additional
financial resources needed to address the impact of slower
development progress through the dike structure during
ramp-up.
- The availability of funds under the
Company’s working capital facility with Concord Resources Limited
was also increased from US$35 million to US$40 million.
- During Q1, the
Company’s wholly-owned subsidiary, Nevada Copper, Inc., settled
legacy disputes with two contractors which improved the Company’s
working capital position.
Q1 2021 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 March 31, 2021. These
documents are available on the Company’s website at
www.nevadacopper.com and the Company’s SEDAR profile at
www.sedar.com.
Qualified Persons
The information and data in this news release
was reviewed by Greg French, C.P.G., and Norm Bisson, P.Eng., 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
604 757 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 costs, timing,
results and funding thereof, and equipment installation.
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 Underground Project 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 Underground Project; 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 securities; 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, 2020 and in the section entitled “Risk
Factors” in the Company’s Annual Information Form dated March 18,
2021. 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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