Nevada Copper Sweetens Pumpkin Hollow Upside with New PFS

Nevada Copper (TSX:NCU) has released a new preliminary feasibility study (PFS) for its Pumpkin Hollow project near Yerington in Nevada.

In a technical report released on Tuesday (April 16), the company included its PFS for the standalone underground project at Pumpkin Hollow, which is currently under construction and is due for production by the end of this year, along with the new PFS for the open pit project on the same property.

The open pit PFS improves on the numbers associated with the project — which is also standalone — sweetening its position as the upside to the broader Pumpkin Hollow project.

“The results clearly illustrate the potential to put this large, open pit project into production with a further improved internal rate of return and continued low capital and operating costs,” said Matt Gili, president and CEO of Nevada Copper.

Looking at some of those numbers, Gili said that the new PFS improves the attractiveness and viability of the open pit thanks to lower capital expenditure (CAPEX) with a staged ramp up, an improved copper grade profile, an improved internal rate of return of 21 percent and a US$829 million net present value.

In the new PFS, initial CAPEX for the open pit is now US$672 million due to a proposed staged ramp up starting at 37,000 short tonnes per day before expanding to 70,000 short tonnes later on.

The company said future development and expansion of the open pit will also be backed by cash flows from the underground mine, reducing the need to access equity capital markets.

“We believe that Pumpkin Hollow represents one of the most attractive development-stage copper projects in the world, given its top rates jurisdiction, compelling economics and opportunity for staged development,” said Gili.

The grade profile of the open pit has been improved by drilling conducted through 2018.

The company and the project have the backing of community leaders in Yerington, who in September last year told the Investing News Network that the community welcomes more job openings for young residents who would otherwise leave the region for opportunities elsewhere.

The company fired the starting gun on construction of its underground project just last year, and is expected to reach first production in Q4 2019.

On the Toronto Stock Exchange, Nevada Copper was trading at C$0.40 on Wednesday (April 17).

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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Nevada Copper is a client of the Investing News Network. This article is not paid-for content.