Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’)
provides an operations update, including October production and
progress with completion of the Main Shaft at its Pumpkin Hollow
Underground Mine.
Mike Ciricillo, Chief Executive Officer of
Nevada Copper, stated:
“We are pleased that the Main Shaft steelwork is
complete and that work is progressing on the materials handling
system. In the meantime, we continue to hoist development ore via
the East North Vent Shaft and look forward to our continued ramp-up
to 5,000 tpd. We are also pleased that our lateral development
rates are on schedule with development ore grades continuing to
increase to targeted levels. Mill ramp up continues positively with
extended periods of operation approaching nameplate throughput and
recovery.”
Operational Update
The Company’s underground lateral development
rates continue to be on schedule, with ore grades encountered in
ongoing development reconciling well to resource model grades, and
hoisted development ore grades improving as expected with stope
development. Average stope development grades in October reached
over 2% copper equivalent grades.
During October the steelwork in the Main Shaft
was completed. Work is ongoing in the Main Shaft to complete the
remaining loading pocket. By the middle 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.
Staged commissioning of the Main Shaft material
handling system has commenced. The Company is testing the
communication system and interaction of these sections to ensure
ramp-up can be accelerated once the underground conveyor is
installed later in the quarter.
Processing plant performance continued to
improve with recoveries increasing 10% in October from September.
Mill throughput rates are continuing to increase as mill
optimization is ongoing, reaching throughput rates approaching
design. Campaign milling is being utilized to optimize ore
stockpile management heading into the commissioning of the Main
Shaft materials handling system.
In October the Company continued to deliver
on-spec copper concentrates to its offtaker, and October
concentrate production increased 140% from September 2020.
Mine Planning
Further to the Company’s August 6, 2020 and
October 5, 2020 updates regarding localized geotechnical changes
arising from recent definition drilling in the Upper East South
zone, the Company has continued its review of the costs associated
with initially smaller stopes during the ramp-up period. 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
project and does not affect the life of mine resource, the change
will increase 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 and transitions out of
the immediate mining area back into originally planned larger
stopes which are typical of the broader mine.
Financing
Update
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 to US$30 million to
fund its increased cash requirements. Discussions are also ongoing
with other potential funding sources. The Company’s largest
shareholder, Pala Investments Limited, 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. 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. The Company will provide
further financing updates in the coming weeks.
The estimated timing for completion of the
ramp-up remains subject to revision based on the availability of
funding, the impacts of the COVID-19 pandemic and other factors
Qualified Persons
The 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
604 757 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 mine development plans and the
expected results and costs thereof, future ore production rates,
the expected timing of the ramp-up of the Company’s underground
mine and plans in respect thereof, ongoing funding needs and
potential financings and the amount and timing in respect
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 financing in a sufficient amount of funds and
within the necessary timeframe; the state of financial markets;
regulatory approvals; 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 the
restart of production, milling operations, construction,
development and ramp-up, including the ability of the Company to
address underground development issues; ground conditions; cost
overruns relating to development, completion and ramp-up of the
company’s 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 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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