March 28, 2019 – Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’) is pleased to confirm that its Pumpkin Hollow underground copper project remains on target to commence production in Q4 2019 and provides an update on key management changes. Additionally, the company announces the release of its consolidated financial statements for the year ended December 31, 2018 and the related management’s discussion and analysis.
Construction Progress Update
- Mine development well progressed:
- East Main shaft stations are complete on both production levels and lateral development has advanced more than 1,000 feet
- Utilities and ventilation infrastructure have been installed in the main production shaft
- East North ventilation shaft headframe has been completed and commissioned. Total Vertical development has advanced over 350 feet
- Surface infrastructure and processing equipment advancing to plan:
- Process facility earthworks are complete
- Sag, ball and vertical mills foundations and form work is advancing well
- Conduit and initial foundation works for flotation, thickening and filtration areas are making excellent progress
Financial and Operational Highlights
- Significant balance sheet strengthening completed:
- Long term debt reduced to US$80 million
- Successfully completed aggregate gross financing of US$256 million, including US$70 million precious metals stream deposit and aggregate equity offerings of US$186 million
- Company cash balance as of December 31, 2018 of US$108 million
- Underground construction commenced:
- Underground project construction decision announced in August 2018
- Total underground project construction is 26% complete as of December 31, 2018
- Open Pit Project re-engineered and expanded:
- 2018 drill program completed in September 2018, successfully extending open pit mineralization to the North and defining further exploration targets
- Subsequent to year end, Pumpkin Hollow tenement package area expanded by 32%, encompassing new exploration targets
Promotion of Senior Vice President - Operations and New Director
Effective as of March 28, Mr. David Swisher has been promoted to Senior Vice President – Operations and will take responsibility for the management and oversight of all construction and technical activities on site.
Concurrently, Mr. Philip Day is transitioning from his role as Chief Operating Officer to a Non-Executive position on Nevada Copper’s Board of Directors. In his position as Director, Mr. Day will join the Company’s Technical Advisory Committee and continue to provide strategic support and direction in respect of the ongoing construction of the underground project. In connection with this previously-planned transition, Mr. Day will hand over management of operations to Mr. Swisher – a highly-qualified professional mining engineer with over 23 years' experience developing and operating both underground and open pit mines. He has held multiple senior operating roles at mines in North America and has overseen the development of numerous mining projects globally. Mr. Swisher has led the underground project development at Pumpkin Hollow from study stage through construction, providing for a seamless transition.
Matt Gili, Chief Executive Officer of Nevada Copper, stated “On behalf of the board and management team, I want to thank Phil Day for his contributions to the Pumpkin Hollow project and the success in building a first-tier operations team. The planned management changes are well timed and represent a further stage in the growth of Nevada Copper. The execution of the Company’s underground project is progressing at a strong and steady pace with both underground development and surface works on track. The Company remains focused on executing its medium-term strategy to commence production in Q4 and continues to seek to reduce its cost of capital by pursuing potential lower cost project finance. In addition, we will soon release an updated pre-feasibility study for the large-scale, open pit project at Pumpkin Hollow and are also preparing an exploration program for the recently-staked ground, adjacent to the east of our property.”
Construction Activity Images
(Main shaft headframe, east north vent shaft headframe and surrounding works)
(CAT R1600 Loader)
(flotation deck foundation)
(Sag Mill foundation)
(Completed concrete for the vertical mill)
Please visit our website at www.nevadacopper.com for updated construction progress photos and additional project information.
The information and data in this news release was reviewed by David Swisher, P. E., SVP of Operations for Nevada Copper, who is a non-independent Qualified Person within the meaning of NI 43-101.
About Nevada Copper
Nevada Copper’s (TSX: NCU) Pumpkin Hollow underground project is in construction with a view to commencement of copper production in Q4, 2019. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully-permitted projects include a high-grade underground project (under construction) and a large-scale open pit project.
For further information please visit the Nevada Copper corporate website
NEVADA COPPER CORP.
Matthew Gili, President and CEO
For further information call:
VP Investor Relations
Toll free: 1-877-648-8266
This news release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements concerning: the ongoing construction of the underground mine, the commencement of production at the underground mine, and other plans of Nevada Copper with respect to the development, construction and commercial production at the Pumpkin Hollow project, ongoing work on a new technical report and the objectives and results thereof, ongoing exploration activities and the objectives and results thereof, and ongoing discussions relating to financing matters and the objectives and results thereof.
Often, but not always, forward-looking statements and forward-looking information can be identified using words such as "plans", "expects", "potential", "is expected", "anticipated", "is targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information are subject to known or unknown risks, uncertainties and other factors which may cause the actual results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements and information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: history of losses; requirements for additional capital; dilution; adverse events relating to construction and development; cost overruns; loss of material properties; interest rates increase; global economy; no history of production; future metals price fluctuations, speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates may differ from what is indicated and the difference may be material; legal and regulatory proceedings and community actions; accidents, title matters; regulatory restrictions; permitting and licensing; volatility of the market price of the Company’s common shares; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form dated March 28, 2018. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper's annual filings that are available at www.sedar.com.
The Company provides no assurance that forward-looking statements will prove to be accurate, 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.