Nevada Copper Provides Operations Update, Announces Filing of Q2 2020 Financial Statements
Source: GlobeNewswire Inc.
Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’) is pleased to provide an operations update including development progress and restart preparations at Pumpkin Hollow.
Accelerated Mine Development and Restart Planning
The Company is making significant progress and is on target to re-start copper production in August 2020, following the temporary suspension of copper production due to the impact of COVID-19:
Mine Development: Multiple key milestones have been completed ahead of schedule on final configuration of the East Main Production Shaft, including:
The main shaft has been sunk and lined to final depth
Permanent production hoist systems have been installed and the headframe has been configured for shaft equipping and subsequent production
Equipping of the shaft below surface is progressing ahead of schedule, and is currently approximately 32% complete
The surface materials handling infrastructure has been completed and moved to its final position on the south side of the head frame
Final shaft configuration and commissioning of the hoisting system in production configuration is ahead of schedule and is expected to be complete in Q4, 2020
Ongoing Lateral Development:
Lateral development rates are ahead of the revised plan targets, the focus of which has been to complete key underground infrastructure areas, develop improved access to ore stoping areas and prepare stopes for ramp-up production on commissioning of the Main Shaft
Ore stockpiled ahead of the process plant restart is continuing to increase, now sitting at over 150,000 tons
Mine planning to develop detailed production mining layouts and stope sequencing has commenced following receipt of the updated geological model and revised geotechnical design parameters developed from underground infill drilling and mapping of the development
The updated geotechnical parameters indicate changes to some of the stope dimensions in the East South deposit. Updated design, extraction sequences and scheduling are currently being finalized and now being incorporated into the final mine plan to support the ramp up schedule
Process Plant:
Restart of the processing plant and ramp-up of operations is expected to re-commence in August 2020
Restocking of consumables and additional spares for the mill is underway and the re-mobilization of mill personnel has commenced in anticipation of the plant restart
Shipping Arrangements:
The concentrate shipping arrangements are in place with a concentrate truck-to-rail transload facility established at Tahoe Reno Industrial Centre site east of Reno, Nevada with access to the Union Pacific mainline. Concentrates will be shipped by rail to US west coast ports for bulk shipment
The company intends to complete its accelerated development plan and restart concentrate production in August 2020, subject to revision based on impacts of the COVID-19 pandemic and ongoing mine planning in addition to other factors.
Evan Spencer, Chief Executive Officer of Nevada Copper, stated “We are now entering the key stage before the re-commencement of production at Pumpkin Hollow. Our team and contractors are continuing to deliver on schedule as we prepare for production later this month.”
“We are very pleased with the strong demand from investors to participate in the Company’s equity offering completed in July 2020 and would like to thank our existing shareholders and new institutional and retail investors for their continued support. We look forward to completing ramp-up of production at Pumpkin Hollow and continuing to advance our organic growth pipeline, including the open pit and exploration properties.”
Open Pit Project
The Company expects to continue advancing optimizations for its Open Pit Project following the current focus on ramp-up of the Underground Mine. The optimizations are expected to include further extension and in-fill drilling as a follow-up to the last Open Pit drilling program, which identified significant additional mineralization and indicated the ore body extends beyond the original pit boundary and remains open in multiple directions, as well as value engineering options and trade-offs with the aim of further enhancing project economics. Further updates on Open Pit advancement plans will be communicated as appropriate.
Exploration
The Company continues to evaluate its extensive mineral landholdings at and around Pumpkin Hollow, including drilling and/or trenching, where appropriate, and to look for opportunities to increase its landholdings at the appropriate time.
The Company 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 in this area has identified a magnetic high which coincides with the identification of anomalous copper mineralization from surface grab samples confirming the prospectivity of this newly acquired property.
The Company continues to prioritize advancing its high-priority targets in accordance with cash availability.
Financing Highlights
During the first six months of 2020 and thereafter, the Company entered into the following financing initiatives:
Amendment to the KFW IPEX-Bank Facility providing for an aggregate of $12.2 million in payment deferrals, with no principal payments due until July 2022 and no debt service reserve account funding due until January 2022.
Agreement with Concord Resources to delay repayments that would otherwise have fallen due under the Working Capital Facility until September 2020
Royalty agreements with an affiliate of Triple Flag Precious Metals Corp. and an amendment to the Company’s stream agreement (the “Stream Agreement”) with Triple Flag Mining Finance Bermuda Ltd. providing proceeds of $30 million and an additional $5 million to be paid to the Company through the reinvestment of 50% of the value of metal deliveries made under the Stream Agreement
Payroll Protection Program loan provided by the United States federal government in the amount of $2.4 million that the Company received in April 2020
Completion of its public offering on July 28, 2020 (the “Offering”) which raised approximately CAD$98 million of net proceeds
A portion of the net proceeds from the Offering was used to prepay in full the Company’s $30 million convertible loan facility. The principal amount outstanding including capitalized and accrued interest and fees was $33.8 million. The Company also used a portion of the net proceeds from the Offering to repay other outstanding indebtedness (including short-term financing provided by Pala in the principal amount of $15.1 million). The Company intends to use the remaining net proceeds from the Offering to fund its operations, including the accelerated mine development plan and to re-start and ramp-up production of the Underground Project and for general corporate purposes.
Q2 2020 Financial Statements
The Company has filed on SEDAR its condensed consolidated interim financial statements and the related management’s discussion and analysis for the quarter ended June 30, 2020. Copies of these documents are available on the Company’s website at www.nevadacopper.com and under 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 David Sabourin, P.E, for Nevada Copper, who are a non-independent Qualified Person 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 transitioning to 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 Relations
Integrous Communications
rmatthews@integcom.us
+1 604 355 7179
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