Yerington, NV – 19. Februar 2021 – Nevada Copper Corp. (TSX: NCU) („Nevada Copper“ or that „Companies“) releases a corporate and operational update for the underground mine on its Pumpkin Hollow project (the “Underground project”) known.
Commissioning of the shaft and production work in the shaft
– After completing the material handling system in the main shaft, the company achieved a daily in February Maximum funding rate of over 3,000 tons and has now reached a production rate equivalent to 5,000 tons per day on a shift basis.
– Despite improving production rates, the cumulative impact of a number of unplanned shutdowns due to mechanical issues and other incidents in the main shaft has resulted in ore production to date to be lower than expected in 2021. The average production rate in February was around 1,600 tons per day, compared to the planned approx. 3,000 tons per day.
The retrofit work to address these issues is expected to be completed in the coming weeks.
business the grinding plant
The throughput at the grinding has done well with an average of around 3,100 tons of ore per day in 2021, with a peak of 4,000 tons per day.
The yield has continued to increase, with an average yield of around 90% in February.
– Product specifications continue to be in line with expectations, with high grade, clean copper concentrates being supplied to the company’s customer.
The facility continues to process development ore and it is expected that higher grade adit ore will be available as planned in the coming months.
Start up production
– As a result of the above-mentioned delays in the shaft and the delayed upgrading of the underground electrical and ventilation systems, the production of copper concentrates in the first half of 2021 is expected to be significantly lower than planned.
The elimination of the problems with the commissioning of the main shaft, the ongoing installation of additional upgrades to the underground power and ventilation systems and the use of additional mobile fleet devices underground are expected to lead to higher copper production rates from the second quarter of 2021.
The company anticipates that stable production of 5,000 tons of ore per day will shift from mid-year to the third quarter of 2021 due to the above delays.
“We are excited about the continuous improvements to the converting facility and that we have achieved this month Maximum funding rates“Said Nevada Copper CEO Mike Ciricillo. “We look forward to den conclusion the upgrades at the main shaft in the coming weeks and the resulting increases in delivery rates and production. “
The company recently extended the credit facility, announced on December 9, 2020 (the “Credit facility”), which enables a claim of $ 15 million subject to certain conditions, performed and completed. In addition, the lender has confirmed its intention to provide the company with an accordion feature if required, adding $ 15 million to the credit facility.
The Company intends to meet the resulting additional cash requirements to advance the ramp-up of the project through the use of the cash on hand, the working capital facility, the $ 5 million set of funds for cost overruns, and the borrowing of funds to cover the credit facility.
Settlement with the contractors
The company’s wholly owned subsidiary, Nevada Copper, Inc. has resolved its litigation with its contractors, Cementation USA Inc. and Sedgman USA Inc. According to the Settlements, the company has paid $ 1 million and issued $ 2 million in common stock and will make $ 14 million in installments beginning September 2021. In addition, the company can be obligedto issue up to an additional US $ 2 million in common stock when certain performance metrics are met.
The company also received cash back from the release of the litigation deposit.
The company continues to advance its medium- and longer-term mine planning analysis, including the associated costs and timing implications.
The information and data in this news release has been reviewed by Greg French, CPG, and David Sabourin, PE, for Nevada Copper, both non-independent persons as defined by NI 43-101.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Pumpkin Hollow is located in Nevada, United States and has significant reserves and resources including copper, gold and silver.
The two fully approved projects include the high-grade underground mine and processing facility, now in the production phase, and a large-scale open pit project moving towards feasibility.
NEVADA COPPER CORP.
Mike Ciricillo, President and CEO
For more information please contact:
Rich Matthews, Investor Relations
+1 604 757 7179
This press release contains certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this press release that do not relate to historical facts are forward-looking statements. Such forward-looking statements and forward-looking information include, but are not limited to, statements relating to operational matters and mine development plans, production and ramp-up plans, and the expected costs, timing, results and financing thereof.
Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans,” “expects,” “potential,” “is expected,” “anticipated,” “will be sought,” “budget,” “planned.” “,” estimates “,” predicts “,” intends “,” anticipates “or” believes “or their negations or modifications such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “may” or “will” take place or be achieved. Forward-looking statements or information are subject to known or unknown risks, uncertainties and other factors that could cause actual results and events to differ materially from future results, performance or accomplishments expressed or implied in such forward-looking statements or information.
Forward-looking statements or information are subject to a number of risks and uncertainties that could cause actual events or results to differ from those expressed in the forward-looking statements or information, including, but not limited to, the risks and uncertainties in Relating to: the company’s ability to complete the ramp-up of the underground project within expected cost estimates and timeframes; the need for additional capital, the availability of which cannot be guaranteed; the impact of COVID-19 on the business and operations of the company; the state of the financial markets; the loss history; the dilution; adverse events related to mill operations, construction, development and ramp-up, including the Company’s ability to handle underground development and process plant development issues; the soil conditions; Cost overruns related to the development, construction and ramp-up of the underground project; Loss of material properties; Rise in interest rates; World economy; limited production history; future metal price fluctuations; speculative character of exploration activities; periodic interruptions to exploration, development and mining activities; Environmental hazards and liability; Accidents at work; Failure of processing and mining equipment that does not perform as expected; Labor disputes; Delivery issues; Uncertainty in production and cost estimates; interpreting drill results and estimating mineral resources and reserves; Changes in project parameters as plans are further refined; possible deviations in ore reserves, grade of mineralization or recovery rates from management expectations, which difference can be material; legal and regulatory processes and community actions; the result of disputes with the company’s contractors; Accidents; Property issues; regulatory approvals and restrictions; increased costs and physical risks associated with climate change, including extreme weather events and new or revised regulations related to climate change; Permits and licenses; Volatility of the market price of the company’s common stock; Insurance; Competition; Hedging activities; Currency fluctuations; Loss of important employees; other mining industry risks and those risks described in the Company’s Management Report for the year ended December 31, 2019, and in the Risk Factors section of the Company’s Annual Report dated May 15, 2020. Should one or more of these risks and uncertainties materialize or should the assumptions on which they are based prove to be incorrect, the actual results may differ materially from those described in the forward-looking statements and information.
The company refuses disclaims any intention or obligation to update any forward-looking statements or information, except as required by law.
The company does not guarantee that forward-looking statements and information will prove to be correct, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information.
The German version can be shortened or summarized. No responsibility or liability is assumed for the content, correctness, appropriateness or accuracy of this translation. From the perspective of the translator, the message does not constitute a buy or sell recommendation! Please note the original English message on www.sedar.com, www.sec.gov, www.asx.com.au/ or on the company website!