Nevada Copper Corp has announced positive results from the feasibility study for its 100%-owned Pumpkin Hollow copper project located in Yerington, Nevada. The study reports the results of a stand-alone open pit operation, and builds upon previously released feasibility studies in February 2012 and December 2012 which were prepared under the direction of Tetra Tech. The latest study confirms the technical and economic viability of constructing and operating a stand-alone 70,000 t/d open pit copper mining and processing operation. The Stage 2 Open Pit Operation would be located approximately 4 km west of the 6,500 t/d Stage 1 underground operation that is currently under construction. Development of the Stage 1 Underground Operation is supported by a feasibility study filed in December 2012.
The Stage 1 Underground Operation will initially access ore from the East deposit and, if warranted, the E2 deposit. With all Stage 1 permits received on September 5, 2013 and a significant portion of project capital funding arranged, Nevada Copper is advancing towards production from the Stage 1 operation and, subject to receipt of permits and project funding, construction of the Stage 2 Open Pit Operation. Production for the Stage 1 Underground Operation is expected to commence in 2015 with Stage 2 Open Pit Operation targeted for 2016.
Nevada Copper states that the positive Stage 2 Feasibility Study results “further support the company’s decision to proceed with a two-staged development of Pumpkin Hollow.”
Upon successfully establishing production from both Stage 1 and Stage 2 operations, Nevada Copper’s projected annual average production for the first five years will be approximately 285 Mlb of copper; 45,000 oz of gold, 1.1 Moz of silver resulting in annual operating cash-flow of approximately $500 million which assumes a forward price curve reducing to a long term price of $2.75/lb copper. “The completion of our Stage 2 stand-alone open pit feasibility study is yet another significant milestone achieved by Nevada Copper since the company was formed in 2006,” commented Giulio Bonifacio, President and CEO. “We are extremely pleased with these results as it further confirms that the Pumpkin Hollow project will support an economically-robust, large copper mine built on a staged basis which is unlike any other copper project currently in construction. It is our view that cash flows from Stage 1 will enhance the available financing alternatives for the much larger open pit operation which, once constructed, will transform Nevada Copper to a mid-tier copper producer. On a combined basis, Stage 1 and Stage 2 currently represent proven and probable mineral reserves of approximately 5 billion lb of copper and annualised average production in the first five years of 285 Mlb of copper on a project that has an ideal geographic location with an extremely low risk profile.”