Nevada Copper Receives All Permits for Stage 1 Underground Mine
September 9, 2013 - Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or “Company”) is extremely pleased to announce that it has received its Nevada Air Quality Operating Permit. This is the final permit needed for construction and operation of the Stage 1 underground project. The Pumpkin Hollow underground project is now fully permitted for mine construction and operations.
With all permits in hand, Nevada Copper will receive a further US$15 million under the US$200 million RK Mine Finance senior secured loan facility and copper concentrate off-take agreements (see March 28, 2013 News Release). A total of US$51 million will be received from this facility with a further US$149 million to be received by Q2-2014 on the completion of certain other project milestones, including completion of the 24 foot diameter, 2,140 foot deep production sized shaft.
Air Quality Operating Permit
The Nevada Department of Environmental Protection (“NDEP”) issued the Air Quality Operating Permit on September 5, 2013. On July 25, 2013, NDEP published the 30-day Notice of Proposed Action to issue this permit. This 30-day public review was completed on August 30, 2013. During the 30-day comment period, no comments were received. The Water Pollution Control Permit and Reclamation Permit were also previously issued with no public comments.
Giulio Bonifacio, President and CEO, stated: “This is a very significant milestone for Nevada Copper, as the path is now clear for us to build and operate our Stage 1 underground operation. We now have a fully permitted project that we will advance to commercial production in 2015. We are very pleased with the diligence of NDEP staff to review our applications and issue permits for Pumpkin Hollow in a timely manner. We will now move forward in Q4 with the execution of both an equipment lease and precious metal stream which when combined with sunk costs and our current treasury will provide substantially all the project funding required while allowing us to achieve the most significant milestone since the company was formed in late 2006 – a fully funded and permitted project.”
Other activities on the project are moving forward at an accelerated pace. These include building our core team of staff and contractors; continued development of the 24 foot diameter, 2,140-foot deep production-sized shaft; detailed engineering on the 6,500 ton per day mill and concentrator for underground ore; preparation of construction bid documents and detailed underground mine planning.
Further to our press release dated April 23, 2013 the Company is currently completing a standalone, Stage 2 open pit feasibility study. The feasibility study contemplates mining the Western open pittable deposits, includes the recently increased mineral resources and higher throughput production rates in the range of 70,000 to 75,000 tons/day. TetraTech, an industry leading international engineering firm was engaged to complete the feasibility study. Feasibility results are targeted for release on or before October 4, 2013.
For purposes of permitting the Stage 2 Open Pit operation we continue to work with the Nevada Congressional delegation to pass the Lyon County Economic Development Bill in order to accelerate development of the Stage 2 open pit operation.
The Senate version of this bill (S. 159) has been reported out of the Senate Energy and Natural Resources Committee. Senator Reid and Senator Heller are working to include this bill in an upcoming floor vote. The identical House version of the bill (H.R. 696) is awaiting action in the House Natural Resources Committee, after which it can be voted on the floor of the House. Lyon County, the City of Yerington and Nevada Copper are supporting the Congressional delegation and are confident this bill will be passed in 2013.
For additional information about Nevada Copper please visit our website at www.nevadacopper.com.
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
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, including the likelihood of commercial mining, securing as strategic partner, expanding the mineral resources and reserves and possible future financings are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements concerning: Nevada Copper Corp. (the “Company”) plans at the Pumpkin Hollow Project; the timing of granting of key permits; from the Feasibility Study: the estimated metal production and the timing thereof; capital and operating costs, future metal prices and cash flow estimates derived from the foregoing.
Forward-looking statements or information relate to future events and future performance and include statements regarding the expectations and beliefs of management and include, but are not limited to, statements with respect to the estimation of mineral resources and reserves, the realization of mineral resources and reserve estimates, the timing and amount of estimated future production, capital costs, costs of production, capital expenditures, success of mining operations, environmental risks and other mining related matters. 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”, “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 include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual industry 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 or 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; loss of its 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 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 September 26, 2012. 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, and you 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.
For further information call:
VP, Investor Relations & Communications
Toll free: 1-877-648-8266
Robert McKnight, P.Eng., MBA
Executive Vice President & CFO