Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’)
is pleased to announce the resumption of deliveries of copper
concentrate to its offtake partner following the restart of copper
production in August 2020 at its Pumpkin Hollow Underground Mine
and provide an update on the Company’s operations.
Evan Spencer, Chief Executive Officer of Nevada
Copper, stated:
“We are pleased to have resumed concentrate
deliveries from Pumpkin Hollow, following the restart of milling
operations as planned in August. We continue to work towards
steady-state production and are pleased that the Main Shaft remains
on schedule for completion in November. We are also pleased to
welcome Dale Ekmark as the Company’s Chief Operating Officer. Dale
brings decades of mining experience to Nevada Copper that will help
lead the Company to achieve top operational results.”
Concentrate Delivery and Processing Plant
Restart
Nevada Copper has completed its first
concentrate delivery following the restart of milling operations as
announced on August 24, 2020, following a temporary suspension of
copper production due to impacts of the COVID-19 pandemic. This
first shipment comprised 1,322 tons of concentrate. Since the
restart, concentrate specifications have been compliant with
offtake requirements and concentrate grade is consistent with plan.
Concentrate deliveries remain ongoing and are planned to continue
with increasing volumes. Concurrent with the concentrate delivery,
the Company recommenced draws and repayments under its working
capital facility.
Mine Development
Completion of Main Shaft transition to its
permanent production configuration remains on schedule for
completion in November 2020. Completion of the Main Shaft is a key
milestone following which increased hoisting rates will allow
mining operations to ramp-up towards mill design capacity.
The Company’s underground lateral development
rates continue as planned and are on schedule. Ore grades
encountered in ongoing development continue to reconcile well to
resource model grades, and hoisted development ore grades have
increased in line with the commencement of stope development.
Initial Mine Planning
Further to the August 6, 2020 update regarding
geotechnical analysis of recent definition drilling in the Upper
East South zone, the Company has elected to reduce the size of
certain early stopes in a localized area where initial ramp-up ore
is planned. The move to initial smaller stopes in this area is a
prudent short-term measure to further reduce mining risk and does
not affect the life of mine resource. Management is continuing to
review cost impacts relating to initial smaller stopes.
The Company continues to plan ongoing monthly
increasing ore production rates with production of 5000tpd expected
to be achieved during Q1 2021 rather than year end. Despite the
slower ramp-up, the change to initially smaller early stope sizes
is expected to provide the benefit of an increased number of stopes
earlier in the ramp-up which contributes toward de-risking
production.
As a result of delays in certain expected cash
receipts, including return of cash collateral under bonding
arrangements and a lower initial draw under the working capital
facility, Pala Investments Limited (“Pala”), the Company’s largest
shareholder, has provided the Company with access to additional
liquidity of up to US$8 million (the “Promissory Note”). The
Company made an initial draw of US$4 million, with subsequent draws
available at the Company’s option, subject to agreed use of
proceeds. The Promissory Note has a maturity date of January 31,
2021 and bears interest at 8% per annum on amounts drawn. The
negotiation and approval of the Promissory Note was supervised on
behalf of the Company by the independent members of the Company’s
board of directors.
The estimated timing for completion of the
ramp-up remains subject to revision based on impacts of the
COVID-19 pandemic and other factors. As noted above, management
continues its review to determine the additional costs expected to
result from ongoing mine planning and the effect of smaller initial
stopes on the ramp-up and will provide further updates as
appropriate.
Qualified PersonsThe
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
Evan Spencer, 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, the availability of drawdowns
under the Promissory Note, regulatory approvals with respect to the
Promissory Note and future funding requirements.
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 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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