Nevada Copper Announces Integrated Feasibility Study Filed on SEDAR

Nevada Copper Corp. (TSX:NCU) announced that it’s completed and filed on SEDAR a NI 43-101 integrated feasibility study technical report for its Nevada-based Pumpkin Hollow copper project.
As quoted in the press release:

The Integrated Feasibility Study describes the proposed development of a 70,000 tons per day copper concentrator with mill feed from both open pit and underground mine operations. The Technical Report, entitled “NI 43-101 Technical Report Integrated Feasibility Study, Pumpkin Hollow Project Yerington, Nevada” (“IFS”), has an effective date of April 15, 2015. This technical report supersedes all previous technical reports on the Pumpkin Hollow Copper Project.
The IFS was prepared under the direction of Tetra Tech, Inc. (“Tetra Tech”) with Stantec Consulting Services Inc. (“Stantec”) having responsibility for the detailed underground mine design and underground capital cost estimation. Tetra Tech and Stantec are both industry-leading international engineering firms.

Highlights of the integrated feasibility study (in US dollars) are as follows:

Reserves and mine production are as reported in the May 28, 2015 press release however, certain costs differ slightly from previously reported amounts:

• Long mine life of 23 years with low-risk profile located in an ideal mining jurisdiction close to existing infrastructure, an increase of 5 years from the first published integrated feasibility study, with production ramp-up targeted for 2018;
• Assuming the Base Case of US$3.15 copper, US$1,200 gold and US$18 silver, the Integrated Project generates Life-of-Mine (“LOM”) after-tax net cash flow of US$2.5 billion, NPV@ 5% of US$1.1 billion, an after-tax IRR of 15.6% with 4.7 year payback;
• Significant LOM metal production of 4.5 billion pounds (2.05 million tonnes) of copper, 512,000 ounces of gold and 15.6 million ounces of silver in a quality copper concentrate. Average annual copper production of 275 million pounds in years 1 to 5;
• The project development contemplates a 63,500 tons/day open pit mine and 6,500 tons/day underground mine, feeding a single 70,000 tons/day concentrator, generating substantial annual cash flow over LOM;
• Proven and Probable Mineral Reserves, including open pit and underground mineable, are 572 million tons of ore grading 0.47% copper equivalent¹, containing 5.05 billion pounds of copper, 761,000 ounces of gold and 27.6 million ounces of silver;
• Initial capital costs are estimated to be $1.04 billion including contingencies, excluding working capital of $33 million. Sustaining LOM capital is $0.63 billion;
• Low LOM site operating costs of $11.80 per ton of ore-milled (Year 1 to 5 – C1 Production Costs at $1.49/lb. payable copper), excluding leased equipment and Nevada State Minerals Tax;
• The IFS includes drilling data to 2011 for the underground deposits and 2013 for the open pit deposits. Further upside and optimization potential exists from current drilling in 2015 which is not included in the IFS; and
• The IFS confirms the technical and financial viability of constructing and operating a 70,000 tons/day copper mining and processing operation at Pumpkin Hollow comprising a single large concentrator with mill feed from both open pit and underground operation.

Click here to read the full Nevada Copper Corp. (TSX:NCU) press release.
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