Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’)
is pleased to provide a further update on progress towards the
restart of production at its Pumpkin Hollow underground mine, and
identification of further new zones of copper mineralization in
further expanded land holding.
Restart Preparations and Accelerated
Mine Development
The Company continues preparations for the
recommencement of processing operations, suspended due to the
impact of COVID-19. Considerable progress has been made with its
previously reported accelerated mine plan, including:
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Vertical Development: |
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With the completion of Main Shaft deepening to the final depth of
2,131 ft., the shaft changeover to production configuration has
commenced and is tracking on schedule |
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Installation of permanent ore handling system at the Main Shaft
headframe is also progressing on schedule |
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Ongoing Lateral Development Mining: |
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Further increases in rates of lateral development and expedited
excavation of key underground infrastructure in preparation to
shift focus to development of stope inventory |
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Further increase of ore stockpile ahead of the process plant
restart, sitting at over 114,000 tons as of May 31 |
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Process Plant: |
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Phased remobilization of plant personnel has commenced |
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Preparations ongoing for the recommencement of processing
operations targeted in August this year |
The Company’s accelerated development plan is
progressing well towards the restart of concentrate production in
Q3 2020, subject to revision based on impacts of the COVID-19
pandemic and other factors.
Long-Term Mining Contract
The Company has now entered into a long-term
mining contract with Redpath USA Corporation (“Redpath”). Redpath
has been working at Pumpkin Hollow since January 2020 under the
previously announced interim services agreement. The signing of the
long-term mining contract between Nevada Copper and Redpath further
cements their long-term operating relationship.
Redpath is a highly accomplished mining
contractor with experience of successfully delivering complex
international and domestic projects.
New Zones of Copper Mineralization and Increased Land
Holdings
Nevada Copper has recently staked an additional,
highly prospective land package covering approximately 680 acres
immediately contiguous to its existing Pumpkin Hollow property and
along the eastern boundary of the Tedeboy area. Review of
historical aero-magnetic survey data has identified a magnetic high
which coincides with the identification of anomalous copper
mineralization at surface with grab samples returning copper grades
confirming the prospectivity of this newly acquired property.
Evan Spencer, Chief Executive Officer of Nevada
Copper, stated “We have made accelerated and marked progress on the
Company’s restart schedule and planned underground ramp-up to full
scale production. Signing the long-term contract with Redpath
is another integral step. Having excellent partners and
mobilizing the workforce are key steps towards re-establishing
normal operations and achieving full scale production following
recent global shutdowns.”
Continued Shareholder Support
As previously disclosed, shareholder Pala
Investments Limited (“Pala”) has provided bonding indemnity support
to the Company. In response to the COVID-19 pandemic, the insurance
industry has seen a broad-based move by surety providers to request
greater collateral coverage for bonds. Pala has agreed to
provide a short-term loan of US$5.5 million to the Company to cover
existing and other bonding needs as may arise, which allows the
Company to better utilize its cash for development and restart of
operations.
Qualified Persons
The information and data in this news release
was reviewed by Greg French, P. Geol., 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.
About RedpathRedpath was
founded in 1962 by Jim Redpath and has an exemplary track record in
the mining industry. With a foundation built on global experience,
adaptability and exceptional workmanship, Redpath leads the
industry with cutting edge innovations in safety and mining
practices.
Evan Spencer, President and CEONEVADA
COPPER CORP. www.nevadacopper.com
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 plans and the expected results
thereof, the timing of expected restart of concentrate production
and plans in respect thereof, and results of exploration
activities.
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 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-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.
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