Nevada Copper

Overview

Nevada Copper (TSX:NCU) owns the Pumpkin Hollow copper project in Nevada, US – one of the world’s top-rated mining jurisdictions. Pumpkin Hollow is one of only two large-scale copper projects in the US that is fully permitted and under construction. Initial production is expected in Q4, 2019. The property hosts two deposits – one underground and one open pittable. Nevada Copper is fully-funded through to production and anticipates entering a copper market during a time of looming supply deficits.

Nevada Copper is run by a management team of highly-experienced mine builders, led by Matt Gili. The team is supported by a Board of Directors that includes Tom Albanese, former CEO of Rio Tinto, and Ernie Nutter, former managing director of RBC Capital Markets. The company is also supported by a number of institutional investors.

The property’s two copper-gold-silver assets are outlined in the company’s 2017 NI43-101 Technical Report, which includes a 5,000 ton per day prefeasibility study (PFS) for an underground operation and a 70,000 ton per day PFS for an open-pit and underground mining operation. An updated PFS is expected in H1, 2019.

The company has re-engineered the underground development to reduce CAPEX and bring the project into production faster. Importantly, Nevada Copper also has a fixed-price EPC contract in place with its largest contractors, which greatly reduces CAPEX risk.

The open pit development plan has also undergone re-engineering to similarly lower capital costs as well as following a “margin over tonnes” approach with an early focus on the high-grade mineralization.

Both the underground and open pit developments have significant growth potential. A 2018 drill program focused on the open pit, encountered mineralization in all 26 holes. Importantly, it intersected mineralization in areas that were previously classified as waste rock.

Company Highlights

• US-based copper project in Nevada is expected to enter production in Q4, 2019
• Fully-funded through to production of underground mine
• Underground project post tax NPV (5 percent) of US$301 million and IRR of 25 percent
• More than 5 billion pounds of contained copper
• Underground production revenue could be used to help fund open-pit operations
• Underground mine construction is on time and on budget
• Staged expansion potential for the open-pit deposit.
• Updated PFS for open-pit forthcoming in Q1, 2019.
• Exceptional management team with notable experience in building mines, permitting, financing and operating large mining projects
• Significant expansion and exploration upside for both the underground and open pit deposits

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