Mr. Evan Spencer reports
NEVADA COPPER DELIVERS COPPER CONCENTRATE AND PROVIDES OPERATIONS UPDATE
Nevada Copper Corp. has resumed deliveries of copper concentrate to its offtake partner following the restart of copper production in August, 2020, at its Pumpkin Hollow underground mine and has provided an update on the company's operations.
Evan Spencer, chief executive officer of Nevada Copper, stated:
"We are pleased
deliveries from Pumpkin Hollow, following the restart of
We continue to work towards steady-state production and are pleased that the
We are also pleased to welcome Dale Ekmark as the company's chief operating officer. Dale brings decades of mining experience
to Nevada Copper
Concentrate delivery and processing plant restart
Nevada Copper has completed its first concentrate delivery following the restart of milling operations as announced on Aug. 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 in progress and are planned to continue with increasing volumes. Concurrent with the concentrate delivery, the company recommenced draws and repayments under its working capital facility.
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 toward mill design capacity.
The company's underground lateral development rates continue as planned and are on schedule. Ore grades encountered in continuing 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 Aug. 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 continuing monthly increasing ore production rates with production of 5,000 tonnes per day expected to be achieved during first quarter 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 derisking 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 Ltd., the company's largest shareholder, has provided the company with access to additional liquidity of up to $8-million (U.S.). The company made an initial draw of $4-million (U.S.), with subsequent draws available at the company's option, subject to agreed use of proceeds. The promissory note has a maturity date of Jan. 31, 2021, and bears interest at 8 per cent per annum on amounts drawn. The negotiation and approval of the promissory note were 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 herein, management continues its review to determine the additional costs expected to result from continuing mine planning and the effect of smaller initial stopes on the ramp-up and will provide further updates, as appropriate.
The information and data in this news release were reviewed by Greg French, CPG, and David Sabourin, PE for Nevada Copper, who are non-independent qualified persons within the meaning of National Instrument 43-101.
About Nevada Copper Corp.
Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, United States, 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, now in the production stage, and a large-scale open=pit project, advancing toward feasibility status.
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