Nevada Copper Corp. (TSX: NCU) (“
Nevada
Copper” or the “
Company’’) provides an
update on its operations and planning for production restart.
In light of the extended restrictions that
remain broadly in place as a result of the COVID-19 pandemic, the
Company continues to maintain the temporary suspension of copper
production whilst initiating an accelerated mine development plan
at its Pumpkin Hollow underground project. Ongoing mine development
during this period enables the Company to continue on its critical
path for the underground mine and provides an improved trajectory
for production growth upon mill restart.
Following the announcement of April 6, 2020
regarding the temporary suspension of production, the Company has
taken the following measures to preserve its liquidity and utilize
this period of interruption to accelerate completion of the main
shaft and further advance lateral development which is expected to
both de-risk ramp-up upon mill restart and facilitate an increase
in production rate.
COVID-19 Mitigation Measures implemented
to-date:
- Concentrator maintained
operation ready: Given the temporary nature of the
suspension, critical processing staff remain either on site or
available to return to site, and the concentrator is in a restart
ready condition.
- Critical path mine
development accelerated: This period offers the
opportunity to focus resources on accelerated critical path mine
development, which de-risks completion of the main shaft in its
final configuration. Additional lateral development also provides
enhanced operating flexibility, through opening-up of additional
stoping zones and reduced ramp-up to full production capacity upon
restart.
- Temporary cost
reduction: Cash burn has been significantly reduced
through various cost saving measures, providing the ability to
focus on additional mine development. The Company is also pleased
to have received support from its key suppliers, providing cost
reductions and additional flexibility during this period. The
Company’s offtake partner, Concord Resources Limited, has also
agreed to defer concentrate deliveries until after the expected
restart of concentrate production.
Senior Management Changes:
As part of its transition to operator status and
associated business improvement plans, the Company has made certain
changes to its senior management team including the departure of
Matt Gili as President & Chief Executive Officer and as a
director of the Company.
Evan Spencer will assume the role as interim
President & Chief Executive Officer with immediate effect,
overseeing the Company and its mine operations. Mr. Spencer brings
substantial experience in the transition of mines from construction
phase to production and, in particular, optimizing production
ramp-up and operating costs. He has held senior roles with Western
Mining Corporation, Placerdome, Barrick Gold, Kagara, Goldfields of
South Africa and Aditya Birla Minerals, and also oversaw the
ramp-up and production of the Ban Phuc nickel mine. Mr. Spencer is
also Chairman at Kasbah Resources.
Nevada Copper’s Chairman, Stephen Gill,
commented:
“We would like to thank Matt for his significant
contributions in bringing the Pumpkin Hollow Underground Mine into
production on time, overseeing the advancement of the Pumpkin
Hollow Open Pit project, and the acquisition and expansion of the
adjacent Tedeboy exploration properties. We would also like to
welcome Evan to the Company. His substantial experience of
transitioning projects from ramp-up to commercial production and
driving ongoing operating efficiencies will be highly valued as
Nevada Copper continues its progress through the next stage of its
growth as an emerging US copper producer.”
Q1 Financial Statements and MD&A
Release Update:
The Canadian Securities Administrators published
blanket relief for market participants regarding the filing of
certain continuous disclosure documents under applicable Canadian
securities laws as a result of the COVID-19 pandemic. Nevada Copper
intends to rely on such blanket relief in respect of the filing of
its interim financial statements for the three months ended March
31, 2020 together with the related management’s discussion and
analysis and the CEO and CFO certifications required under National
Instrument 52-109 – Certification of Disclosure in Issuers’ Annual
and Interim Filings (collectively, the “Disclosure
Documents”). Nevada Copper confirms that its management
and other insiders are subject to an insider trading black-out
policy. The Company anticipates filing such Disclosure Documents
prior to June 1, 2020. The Company hereby confirms that other than
the matters described in this news release, the financing package
update matters disclosed in its April 3, news release and the
project update matters disclosed in its April 6, 2020 news release,
there are no additional material developments since the date of
filing of the Company’s annual financial statements for the
twelve-month period ended December 31, 2019 and the related
management’s discussion and analysis.
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.
Additional Information
For further information please visit the Nevada
Copper corporate website (www.nevadacopper.com).
NEVADA COPPER
CORP.Stephen Gill, Non-Executive
Chairman
For further information call:Clare DevincenziVP
Investor RelationsPhone: 415-858-3556
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 plans and the expected results
thereof, cost reduction initiatives and the timing of expected
restart of concentrate production.
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 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 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; dilution; adverse events
relating to 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, completion and ramp-up of the Pumpkin Hollow
Underground Mine; loss of material properties; interest rates
increase; global economy; no history of production; future metals
price fluctuations and the continuation of the current low copper
price environment; 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 may differ from what is indicated 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 March 29,
2019. 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-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 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.
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Aug 2024 to Sep 2024
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Sep 2023 to Sep 2024