NEVADA COPPER
UPDATES FEASIBILITY STUDY PROGRESS
February
8, 2011 - Nevada Copper Corp. (TSX: NCU) ("Nevada
Copper") Nevada Copper is pleased to provide an update on progress of the
Definitive Feasibility Study ( DFS ), the start of which
was announced on November 25, 2010. The DFS team, led by Tetra Tech Inc.,
is building upon previous Preliminary Economic Assessments completed in March
2008 and December 2009 (both filed on SEDAR). The DFS is scheduled for
completion by June 30, 2011.
Tetra
Tech s team in December focussed on updating the mineral estimate and
completing a number of trade-off studies prior to commencement of detailed
engineering. The recently completed
definition drilling program totalling 50,000 meters was very successful in
achieving its objective of moving additional mineral resources into the
Measured and Indicated categories as well as discovering stacked mineralization below the existing North
deposit. The DFS will use this updated resource estimate to develop mine plans
and, ultimately, a categorized mining reserve.
The trade-off studies covered such
areas as staging of mine development from underground and the larger scale
open-pits; tailings storage alternatives; reviewing potential production rates;
methods of accessing the underground East and E2 deposits and ore transport
from underground comparing decline versus shaft options; for the open pits,
truck vs. in-pit crushing and conveying; and power supply alternatives.
With the results of the trade-off
studies, Nevada Copper has directed Tetra Tech to proceed with detailed
engineering and costing on the basis of the following project development
parameters:
Phased Project
Development
For purposes of the DFS, Nevada
Copper has elected to evaluate a phased project development build-out to allow
for earlier production from an underground operation located entirely on
private, patented claims. The earlier Phase 1 underground mine and mill
operation can be developed economically on its own and would not be dependent
upon subsequent phases of the project. A subsequent Phase 2 would involve
two open pits, which would require additional environmental design, amendments
to local and State permits and Federal approvals. This phased plan means that
the stand-alone underground project could be in operation as early as late 2013
while additional environmental studies are performed to secure Federal
approvals for Phase 2.
Nevada Copper believes that Phase 1 operations will generate early cash
flows that will provide lower cost financing options for the larger Phase 2
development and construction.
Phase 1
- Underground Operation on Private
Land
? Phase 1 development
includes a 8,000 ton per day mine/mill operation with
ore feed from the high grade East and E2 underground deposits. Phase 1
mining and milling rates will be optimized and determined as part of the DFS.
? Phase 1 operation
is highly attractive because of its small environmental footprint with the
development contained entirely within private patented mining claims -
requiring no Federal permits. This phase would require State and County
permits only and result in faster permitting and earlier initial copper
production. Final permits for the Phase 1 development are expected to be received
by the third quarter of 2012.
?
Ore from
the East and E2 deposits will be transported to surface by two vertical shafts one to each of the deposits, which will
also be linked underground by a conveyor-equipped decline. Compared to
access via a decline, this configuration allows for the earliest possible
access to the ore zones, maximizes operational flexibility and minimizes the
potential for cost overruns due to any adverse near-surface ground conditions.
Phase 2 - Open Pit
Mine/Mill on Private and BLM
Land
? A Phase 2 expansion
includes a 60,000 tons per day open pit mine feeding a
separate mill facility with grind size optimized for maximum copper recovery
from the open pit ores. Phase 2 mining and milling rates will be
optimized and determined as part of the Definitive Feasibility Study. The mining sequence will likely start with pre-stripping of the
North Deposit and later move towards the coincident mining of both the North
and South Deposits.
? Phase 2 would
require BLM Plan of Operations and an Environmental Impact Statement since the
project would extend onto unpatented claims held by Nevada Copper on BLM
lands. Phase 2 development timeline allows for more time for detailed
engineering and environmental design associated with the larger open pits, mine
rock storage facilities, tailings storage facilities and the groundwater
studies needed to support County, State and Federal permitting.
Phase 2
approvals are expected to be received approximately 27 months after submission
of a complete BLM Plan of Operations. The BLM Plan of Operations is
targeted for submission in Q3 of 2012.
Copper Production
Annual copper production for Phase 1, based on
previous studies, is expected to be up to 120 million pounds with a
life-of-mine average of approximately 90 million pounds. At full production,
including Phases 1 and 2, annual copper production, based on previous studies,
is expected to be up to 270 million pounds with a life-of-mine average of approximately
190 million pounds. The DFS will confirm the actual annual copper
production schedule based on the sequencing of Phase 1 and 2 mine production,
mining rates, mill recoveries and mill feed grades.
Other key elements
of the DFS are discussed below:
?
Water
Rights. Nevada Copper already owns water rights well in excess of Phase 1
requirements and is currently working on the acquisition, or lease of,
additional water rights that would be adequate for the larger combined
operation.
?
Tails
Storage. For maximizing the potential for water recycling, dry stacked tailings
has been selected for Phase 1, and dewatered tails for the larger Phase 2
expansion.
?
Power
Supply. Supply of line power to the Project will require upgrading of
existing distribution lines and substations. Energy availability
nearby in the City of Yerington
is considered sufficient, with upgrading, for Phase 1 power requirements.
A high voltage power line is located 5 miles east of the property is the likely
source of energy for the larger Phase 2 requirements. On-site natural gas
generation is also under consideration with existing natural gas lines in place
approximately 8 miles west of the Project.
? Concentrates
Transportation. Copper concentrates will be transported by truck to a
rail loading facility located close to Yerington and then by Union Pacific rail
to a west coast port. Direct truck-to-port transportation is being
evaluated as a backup in times where there may be rail disruptions. The
overall transportation plan is under development by specialist consultants and
will be incorporated into the DFS.
? Segregated
Magnetite Tailings. The process flow sheets for both Phase 1 and 2
require magnetic separation of magnetite before the copper flotation
circuits. The magnetite tails will be segregated for future processing
and, although not considered in this DFS, possible future sale of an iron
magnetite concentrate. Nevada Copper will initiate further studies to
determine how best to extract value from this considerable high grade resource.
Robert McKnight, Executive Vice
President of Nevada Copper, comments, We are very pleased with
progress on the feasibility study to date. This work has focussed on
various trade-off studies and finalizing an updated mineral resource estimate
as a basis for the DFS reserve estimate. Work now will advance to
detailed work on all aspects of the staged mine development platform, mine and
mill design, equipment selection, developing mine production schedules,
development of capital & operating costs and provision for the related
project infrastructure requirements. Meantime, State permits allowing for
the start on underground access to the East and E2 deposits are expected by the
end of the first quarter, 2011.
Tetra
Tech are an engineering, environmental and permitting and construction services
company with over 12,000 staff working in over 30 countries. Tetra Tech's
mining services are provided by 4,000 staff from offices in the US, Canada, Peru,
Chili, Panama, Colombia, Argentina, UK, China, Australia, India, and
Africa. Tetra Tech s services span the full life cycle of the mining
industry. This includes frontend assessments and feasibility studies;
engineering and environmental evaluations and permitting, geotechnical
engineering around underground and surface mining, including tailings
impoundments and heap leach facilities; process metallurgy; EPCM; closure and
reclamation and post-closure operation and monitoring.
Qualified Person
The Pumpkin Hollow
project is under the supervision of Gregory French, CPG #10708, a Qualified Person as defined in Canadian National
Instrument 43-101, who is responsible for the preparation of the technical
information in this news release.
For additional
information about Nevada Copper please visit our website at www.nevadacopper.com.
NEVADA COPPER
CORP.
Giulio T. Bonifacio, President & CEO
This
news release includes certain statements that may be deemed forward-looking statements . All
statements in this release, other than statements of historical facts,
including the likelihood of commercial mining, possible future copper grades,
recoveries and production rates, and possible future financings are
forward-looking statements. Although Nevada
Copper believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
unsuccessful exploration results, changes in metals prices, changes in the
availability of funding for mineral exploration, unanticipated changes in key
management personnel and general economic conditions. Mining is an inherently
risky business. Accordingly the actual events may differ materially from those
projected in the forward-looking statements. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. For more information on Nevada
Copper and the risks and challenges of its business, investors should review Nevada
Copper s annual filings that are available at www.sedar.com.