Nevada Copper Provides Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 14, 2014) -
Nevada Copper Corp. (TSX:NCU) ("Nevada Copper" or "Company") is
pleased to provide updates on the Lyon County Economic Development
and Conservation Act (the "Land Bill") and project activities at
its 100% owned Pumpkin Hollow copper project in Yerington,
Nevada.
The 6,500 ton per day Stage 1 underground mine is fully
permitted for construction and operations (See September 9, 2013
News Release). Additionally, National Instrument 43-101 Technical
Report Feasibility Study results for a stand-alone 70,000 ton per
day Stage 2 open pit operation were announced (See October 3, 2013
News Release).
With respect to the stand-alone Stage 2 open pit operation, the
Company previously announced the engagement of BMO Capital Markets
as a financial advisor (See October 30, 2013 News Release) to
assist the Company in securing project financing by way of joint
ventures and strategic off-take opportunities. The Company
continues to advance discussions regarding its stand-alone Stage 2
open pit operation.
Land Bill and Stage 2
Open Pit Permitting
With the Stage 1 underground mine having been fully permitted
under the State auspices, the permitting path forward for Stage 2
will depend on passage of the Land Bill now before the House and
Senate in the United States Congress.
The Land Bill has three final steps for passage by Congress
before being signed into law by the President. The first of those
is a "mark-up" and action by the House Natural Resources Committee.
The Land Bill received a major commitment from Chairman and
Congressman Doc Hastings on December 12, 2013 to act on this
legislation in January 2014, after which it can be brought to the
House floor for passage, which is the second step. The Land Bill
has already been passed out of the Senate Energy and Natural
Resources Committee, and is ready for the third step, floor action
in the Senate. The Nevada Congressional delegation has worked
together to conform the House and Senate versions of the Land Bill
to assure expedited passage in both the Senate and House.
The Nevada Congressional delegation has been in unanimous
agreement on this Land Bill since its re-introduction in early
2013. It has the full support of Governor Brian Sandoval, the
unanimous support of the Nevada State Legislature during their 2013
session and the unanimous support of the City of Yerington and Lyon
County. Successful passage of this Land Bill, and subsequent
acquisition of the land by the City of Yerington, would allow for
continued permitting of Stage 2 under Nevada State and Lyon County
laws and regulations.
Regardless of whether the project is permitted under State or
Federal laws, Nevada Copper has followed and will follow the same
environmental technical standards for protection of ground and
surface water, air quality, pollution control for mining and
mineral processing, reclamation and other environmental aspects.
There are no endangered species, wilderness, cultural or Native
American impacts from the project and the project area has no other
land use conflicts. Much of the required permitting documentation
for Stage 2 has already been provided to State regulators as part
of the Stage 1 permitting process.
We believe that subject to passage of this Land Bill in early
2014, issuance of Stage 2 permits for the construction and mine
operations of an open pit will be obtained in 2014.
Stage 1 Underground
Shaft Sinking
Nevada Copper completed a CDN$65 million bought deal financing
in August 2011 with a majority of this funding being allocated to
the early commissioning of a production-sized shaft accessing the
Eastern deposits. Mineral reserves on these deposits were confirmed
by a NI 43-101 Technical Report Feasibility Study that was
SEDAR-filed on December 13, 2012. Following an evaluation and
selection process, a shaft contractor was selected in December 2011
followed by an official ground breaking in February 2012. The
opportunity to acquire a used production hoist allowed the Company
to plan for production-sized ore hoisting facilities, and
engineering design work allowed for this construction during 2012
and into early 2013.
By late May 2013, the production-sized hoist and permanent shaft
head frame had been constructed and deemed operational, along with
the necessary shaft infrastructure, including 25kV power line and
substation, site offices, mine rescue capabilities, supplies
warehouse, mine dry and equipment repair shop. At this point, the
shaft foundation (sub-collar) had also been completed, along with a
pre-sink of the 24 feet diameter, concrete-lined shaft to a depth
of 99 feet. During the balance of 2013, shaft sinking operations
continued to a current depth of 550 feet.
In December 2013, the Company elected to continue shaft sinking
and underground development under a different contractor,
Cementation USA Inc. ("Cementation"). As part of the global
Cementation Mining Group, Cementation has extensive worldwide
experience in shaft sinking and underground mine development work.
The current targeted completion date of the shaft including
development of initial lateral access to the ore zone is
Q1-2015.
2014 and 2015 Project
Construction
During 2014 and into 2015, shaft sinking at the project site
will be under Cementation's management. Sinking will advance to the
1906 foot depth, the main level from which lateral development will
begin and allow for access to the East ore zone. Development
drilling from this level will focus on obtaining mineral and
geotechnical data for mine planning. We believe the drilling will
not only improve the grade profile in the early years of mine
production, but also expand the mineral resource. Subject to shaft
sinking rates, reaching the 1906 level is anticipated during
Q4-2014. After completion of initial development work at the 1906
level, including a bulk ore sample and drilling, the shaft will be
completed to the final 2140 foot depth. This will be followed by
equipping of the shaft for ore hoisting along with development of
the underground crushers and related infrastructure required for
production operations. While shaft sinking progresses, engineering
and procurement for the copper concentrator and site infrastructure
will continue.
The pace of engineering and construction expenditures on the
non-shaft areas during 2014 and 2015 will be closely managed to
match the shaft sinking completion timeline. The pace will also be
controlled by the availability of funds from:
a) US$46 million
cash balance at December 31, 2013; |
b) US$149 million
undrawn portion of the Red Kite loan facility (See March 28, 2013
News Release); and, |
c) US$24 million
Caterpillar Financial equipment lease finance facility (see October
1, 2013 News Release). |
Subject to securing the remainder of financing required for the
Stage 1 underground mine, and in view of the current targeted
completion date of the shaft, first ore will be produced by
Q4-2015.
Giulio Bonifacio, President and CEO, stated: "As we proceed
towards fully financing our Stage 1 underground mine the Company
will continue to prudently manage our treasury while considering
our financing options. We will also continue to advance current
discussions regarding funding for our much larger stand-alone Stage
2 open pit operation in anticipation of Stage 2 being fully
permitted in 2014."
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
We seek safe harbor.
Nevada Copper Corp.Eugene ToffoloVP, Investor Relations &
Communications604-683-8266 or Toll free:
1-877-648-8266etoffolo@nevadacopper.comNevada Copper Corp.Robert
McKnight, P.Eng., MBAExecutive Vice President &
CFO604-683-1309bmcknight@nevadacopper.com
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