Name of the Project
Pumpkin Hollow copper project.

Location
The property is located near Yerington, Nevada, in the US.

Project Owner/s
Nevada Copper.

Project Description
A technical report has described the Pumpkin Hollow property and its advancement, based on a phased development approach of the underground and openpit deposits, as standalone projects.

The prefeasibility study (PFS) proposes the development of the openpit project independently from the underground mine currently under construction.

The openpit study envisages a phased operation with an initial mining rate of 37 000 t/d (years 1 to 6), later expanding to 70 000 t/d (years 7 to 9). Peak production is forecast at 111 000 t/y, or 244-million pounds a year.

The proposed openpit project plan includes additional drilling in areas that have mineralisation open within the pit boundary, which are currently inferred resources, as well as areas where the boundary of mineralisation remains open. The openpit has been designed to be a conventional truck-and-shovel operation, with a combination of hydraulic and electric cable shovels and haul trucks.

The openpit has a mine life of 19 years.

Processing will be undertaken through a conventional flotation concentration plant and will comprise crushing and grinding circuits, followed by a flotation process to recover and upgrade copper, gold and silver from the feed material.

The 5 000 t/d underground project will produce about 60-million pounds of copper in the first five years of operations, as well as 9 000 oz of gold and 173 000 oz of silver.

Over the underground project’s 13.5-year mine life, it will average 50-million pounds of copper a year, 8 000 oz/y of gold and 15 000 oz/y of silver.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The openpit operation has an estimated pretax net present value (NPV), at a 7.5% discount rate, of $1.04-billion and an internal rate of return (IRR) of 23%, with a payback of 4.5 years. Together, the underground and openpit operations have a pretax NPV, at a 7.5% discount rate, of $1.32-million and an IRR of 24%.

Capital Expenditure
Initial capital expenditure for the openpit is estimated at $627-million.

Planned Start/End Date
The timing of the openpit construction and operations remains flexible.

Latest Developments
Nevada Copper needs additional funding for the ramp-up of its Pumpkin Hollow underground project.

A change in mine plan to initially mine smaller stopes in the Upper East South zone will increase costs in the short term and it will, therefore, require additional funding over the next four months.

Production will transition to predominantly larger stopes over the first quarter of 2021, supporting the sustained mining of larger stopes as previously planned, Nevada Copper has said.

The company has reported that it is in discussions with senior lender KfW-IPEX Bank and has received a term sheet from a third party for an additional credit line of $20-million to $30-million to fund its increased cash requirements.

The miner’s largest shareholder, Pala Investments, will continue to provide financial support until the end of the year, by which time the company expects to complete financing.

“. . . in the absence of sufficient financing, the company may not be able to continue operations,” the copper producer has stated.

Nevada Copper has said that the estimated timing for completion of the ramp-up remains subject to revision based on the availability of funding and the impacts of the Covid-19 pandemic.

Meanwhile, the main shaft steelwork is complete and work is progressing on the materials handling system. The company continues to hoist development ore through the East North vent shaft and is continuing the ramp-up to 5 000 t/d. The lateral development rates are also on schedule, with development ore grades continuing to increase to targeted levels. In addition, the mill ramp-up continues positively with extended periods of operation approaching nameplate throughput and recovery, the company has said

Key Contracts, Suppliers and Consultants
Golder Associates, Sedgman and Tetra Tech Inc (openpit PFS and technical report) Redpath USA (mining contractor).

Contact Details for Project Information
Nevada Copper Corp, email info@nevadacopper.com.