Nevada Copper Corp (NEVDQ)

[the cork]

Nevada Copper Delivers Copper Concentrate and Provides Operations Update

6:20 pm ET October 5, 2020 (Globe Newswire) Print

Nevada Copper Corp. (TSX: NCU) ("Nevada Copper" or the "Company'') is pleased to announce the resumption of deliveries of copper concentrate to its offtake partner following the restart of copper production in August 2020 at its Pumpkin Hollow Underground Mine and provide an update on the Company's operations.

Evan Spencer, Chief Executive Officer of Nevada Copper, stated:

"We are pleased to have resumed concentrate deliveries from Pumpkin Hollow, following the restart of milling operations as planned in August. We continue to work towards steady-state production and are pleased that the Main Shaft remains on schedule for completion in November. We are also pleased to welcome Dale Ekmark as the Company's Chief Operating Officer. Dale brings decades of mining experience to Nevada Copper that will help lead the Company to achieve top operational results."

Concentrate Delivery and Processing Plant Restart

Nevada Copper has completed its first concentrate delivery following the restart of milling operations as announced on August 24, 2020, following a temporary suspension of copper production due to impacts of the COVID-19 pandemic. This first shipment comprised 1,322 tons of concentrate. Since the restart, concentrate specifications have been compliant with offtake requirements and concentrate grade is consistent with plan. Concentrate deliveries remain ongoing and are planned to continue with increasing volumes. Concurrent with the concentrate delivery, the Company recommenced draws and repayments under its working capital facility.

Mine Development

Completion of Main Shaft transition to its permanent production configuration remains on schedule for completion in November 2020. Completion of the Main Shaft is a key milestone following which increased hoisting rates will allow mining operations to ramp-up towards mill design capacity.

The Company's underground lateral development rates continue as planned and are on schedule. Ore grades encountered in ongoing development continue to reconcile well to resource model grades, and hoisted development ore grades have increased in line with the commencement of stope development.

Initial Mine Planning

Further to the August 6, 2020 update regarding geotechnical analysis of recent definition drilling in the Upper East South zone, the Company has elected to reduce the size of certain early stopes in a localized area where initial ramp-up ore is planned. The move to initial smaller stopes in this area is a prudent short-term measure to further reduce mining risk and does not affect the life of mine resource. Management is continuing to review cost impacts relating to initial smaller stopes.

The Company continues to plan ongoing monthly increasing ore production rates with production of 5000tpd expected to be achieved during Q1 2021 rather than year end. Despite the slower ramp-up, the change to initially smaller early stope sizes is expected to provide the benefit of an increased number of stopes earlier in the ramp-up which contributes toward de-risking production.

As a result of delays in certain expected cash receipts, including return of cash collateral under bonding arrangements and a lower initial draw under the working capital facility, Pala Investments Limited ("Pala"), the Company's largest shareholder, has provided the Company with access to additional liquidity of up to US$8 million (the "Promissory Note"). The Company made an initial draw of US$4 million, with subsequent draws available at the Company's option, subject to agreed use of proceeds. The Promissory Note has a maturity date of January 31, 2021 and bears interest at 8% per annum on amounts drawn. The negotiation and approval of the Promissory Note was supervised on behalf of the Company by the independent members of the Company's board of directors.

The estimated timing for completion of the ramp-up remains subject to revision based on impacts of the COVID-19 pandemic and other factors. As noted above, management continues its review to determine the additional costs expected to result from ongoing mine planning and the effect of smaller initial stopes on the ramp-up and will provide further updates as appropriate.

Qualified Persons

The information and data in this news release was reviewed by Greg French, C.P.G., and David Sabourin, P.E, for Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.

Note: The announcement is a week old, but since nobody else posted this production update, I did, so we'd have the most current information available

https://invest.ameritrade.com/grid/p/site#r=jPage/https://research.ameritrade.com/grid/wwws/research/stocks/news/article?c_name=invest_VENDOR&docKey=100-279u6123-1