BASE METALS

Nevada Copper completes Pumpkin Hollow openpit PFS

Nevada Copper says a prefeasibility study on a standalone openpit mine at Pumpkin Hollow in Nevada has broadly confirmed the earlier positive PEA, with the surface mine to complement underground development in progress at the site near Yerrington.

Nevada Copper has outlined feasible plans for a parallel openpit mine at Pumpkin Hollow, Nevada

Nevada Copper has outlined feasible plans for a parallel openpit mine at Pumpkin Hollow, Nevada

The company has filed a prefeasibility study that considers an independent and phased openpit operation at Pumpkin Hollow, which it says will be value accretive for shareholders.

Nevada Copper said the pre-tax IRR increased to 23%, compared with the September 2018 PEA result of an IRR of 21%. The PFS also calculated an NPV, using a 7.5% discount, of US$1.04 billion, below the PEA NPV of $1.17 billion.

Initially, the openpit will operate at a mining rate of 37,000t/d, later increasing to 70,000t/d, which substantially lowers upfront capital costs, compared with historic studies.

The openpit's pre-production capex of $672 million in the PFS, compared with the PEA estimate of $592 million, gives the project a capital intensity of $9,544/t of copper equivalent.

"We are very pleased with the new PFS for our openpit project at Pumpkin Hollow. The results clearly illustrate the potential to put this large, openpit project into production with a further improved internal rate of return and continued low capital and operating costs," CEO Matt Gili said.

Peak copper production is forecast to be 111,000t/y, or 244Mlb/y. In the first five years of its 19-year mine life, the Pumpkin Hollow openpit is predicted to achieve copper-equivalent grades of 0.69%.

"The study's focus of generating project value through an improved internal rate of return has resulted in a higher-grade driven mine plan. This means we expect the openpit project to be more robust with regards to lower copper prices, while also affording potential flexibility for mining more of the mineral resource under differing market conditions," said Gili.

The 2018 drilling programme on which the openpit PFS was based extended openpit mineralisation while highlighting a need for further drilling to test the full extent of the deposit and continue expanding openpit resources.

The Pumpkin Hollow underground mine was on track to start production in the fourth quarter, Gili said.

The 5,000t/d underground project will produce 60Mlb a yearn of copper in the first five years, as well as 9,000ozpa gold and 173,000ozpa silver. Over the entire 13.5-year mine life, annual output will average 50Mlb copper, 8,000oz gold and 150,000oz silver.

Nevada Copper (TSX:NCU) is currently trading about 38.5% below its value a year ago at C40c, which capitalises the company at $264.77 million.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.