- Mining rates have increased month over month in H2, 2021
- Productivity increased by 31 per cent between October and November resulting in substantial improvement in operating efficiency and cost reductions
- Nevada Copper closed a $125M public equity offering in November
- Long term debt reduced by approximately 30 per cent during Q4, 2021
- Nevada Copper is a Canadian-based mining company
- Nevada Copper Corp. (NCU) opened trading at C$0.58 per share
Nevada Copper (NCU) has provided an operations update and an overview of milestones achieved at its Pumpkin Hollow Project.
Randy Buffington, President and Chief Executive Officer commented on the company’s progress.
“I am very pleased with the progress the company has made in H2 of this year. Our mining rates, a key metric for ramp-up production advancement, have been increasing month over month. We are now seeing the efficiencies generated from the advanced management systems implemented in Q3 of this year. The building blocks are in place for increased mining rates and production as we move into H1 of next year.”
Operations
- Equipment availabilities materially improved:
14 per cent improvement in total fleet availability since the beginning of Q4, 2021. Additional equipment expected to be added in Q4, 2021 - Contractor performance improved:
Productivity increased by 31 per cent between October and November resulting in substantial improvement in operating efficiency and cost reductions - Increased mining development rates:
Rates achieved in December are currently 50 per cent higher than August Commissioning of additional bolters planned to deliver a further 50 per cent increase in development rates in the coming weeks - Consistent mill performance:
Milling operations have performed well throughout 2021, with batch processing reaching 4700tpd, recoveries over 90 per cent and concentrate quality performing in-line with design specifications - Dike crossing completion:
First crossing of the water bearing dike was completed in August 2021, and the second crossing is anticipated to occur later this year. No further crossings are required during the ramp up to 3ktpd expected in H1, 2022 - Ventilation infrastructure in place:
All underground ventilation infrastructure was completed in H1 2021. Final addition of surface ventilation fans remains on schedule, with commissioning planned to be completed in January, 2022, with ventilation no longer expected to be a constraint to production rates thereafter.
Corporate
- Transformational financing completed:
- Closed C$125M public equity offering in November 2021
- The financing provides additional liquidity to fund exploration and expansion studies at the company’s open pit project in addition to the ramp-up of Underground Mine.
- Significantly enhanced balance sheet flexibility:
- Long term debt reduced by approximately 30 per cent during Q4, 2021
- First debt repayment under the Company’s senior credit facility with KfW-IPEX Bank deferred by 2 years to July 2024
- Hiring of key management positions:
- CEO Randy Buffington brings substantial operational and development experience in both underground and open pit mines in Nevada and internationally.
- 8 key operational management positions added in H2 2021, resulting in operational improvement and enhanced planning and execution systems.
- Development
- Developed program for Open Pit Project resource extension and feasibility study:
The budget and execution plan have been defined and the company expects that drilling to support the updated open pit feasibility study will commence in Q2 2022, potentially sooner depending on drill rig availability. - Open Pit Project decarbonization program advanced:
- Solar power studies were completed in 2021, which show:
- Pumpkin Hollow benefits from ample sun and land to support a large solar project with the capacity to meet a significant portion of the Open Pit Project’s power requirements;
- The solar potential at the site is up to 200MW;
- The already low grid power costs in Nevada could be further reduced through an on-site solar plant; and
- A third-party solar project provides an option to remove upfront power infrastructure costs from the Open Pit Project.
- Electric fleet study for mobile mining equipment fleet electrification at the Open Pit Project was completed by US-based energy and sustainability consultant Sprout Energy, which concluded:
- Scope 1 carbon emissions over the life of mine could be reduced by approximately 10 per cent of total estimated emissions; and
- Fuel and maintenance costs could be reduced by up to approximately US$200m over the life of mine.
- Solar power studies were completed in 2021, which show:
- Developed program for Open Pit Project resource extension and feasibility study:
- Exploration
- Undertook further property reconnaissance on the Copper Ridge Area, which is located to the northeast of the Open Pit.
- Defined target exploration plan: Initiated further refinement and interpretation of the newer geophysics in key areas such as Tedeboy, Tedeboy porphyry and Copper Ridge.
- Initial grab sampling and mapping of these areas have resulted in areas with high grade copper samples. Surface mapping and sampling are planned for Q1 of 2022, supporting the commencement of drilling in Q2 2022.
Nevada Copper is a Canadian-based mining company engaged in the exploration, and development of copper and other mineral properties located in the United States.
Nevada Copper Corp. (NCU) opened trading at C$0.58 per share.