Recent Video Clip: We’re already blasting… now to dig a really big hole
Nevada Copper (TSX:NCU) owns 100% of the Pumpkin Hollow Copper Development Property located in Nevada, United States. Pumpkin Hollow is a large advanced stage development copper property with substantial reserves and resources including copper, gold, silver, as well as a large iron resource.
- Pumpkin Hollow is located approximately 8 miles southeast of the small town of Yerington, Nevada in Lyon County, one and one half hours drive southeast of Reno.
- Resource is located on patented claims within a contiguous 22 square-mile land package comprised of patented and unpatented claims.
- Accessible by paved road and located on relatively flat gently rolling hills.
Yerington Area Summary
- Farming-mining community of 4000.
- History of copper mining: Anaconda Copper operated an open pit mine across the valley from Pumpkin Hollow from between 1953 and 1978, producing 2 billion pounds of copper at a 0.6% Cu grade.
- Locally available infrastructure includes an electrical power line crossing the Pumpkin Hollow property, natural gas supply and rail siding within 10 miles of the property, and a reliable local labor supply.
- Pumpkin Hollow is a high grade Iron Oxide Copper Gold (IOCG) deposit within a porphyry copper rich district with a mineral inventory of over 24 billion pounds of copper.
- Positive Stage 1 Underground (2012) and Stage 2 Open Pit (2014) Feasibility Studies.
- Positive Integrated Project (Combined Underground and Open pit Mining and One Process Facility)
- Significant Resource/Reserve Upside.
- Significant iron magnetite resource yet to be included.
- Premier Site – Entirely On Private Lands, Federal Land Conveyance Completed October 2015.
- Fully Permitted
- Excellent Infrastructure – Power, Rail, Roads, Labor etc.
- 1960: Discovered by US Steel using airborne magnetic surveys.
- Up to 2001: Over 180,000 meters of drilling by US Steel, Anaconda, and other world leading mining companies discovers and delineates large copper and magnetite resources.
- Up to 2001: Several economic studies were completed with extensive metallurgical, geotechnical and geophysical studies.
- Acquired by Nevada Copper in 2005 with copper prices at $1.40/lb.
- Nevada Copper completed over 154,000 meters of drilling to date.
- Collection of geotechnical, metallurgical, environmental and hydrological baseline data has been ongoing since 2006 to support permitting and feasibility efforts.
- Nevada Copper completes NI 43-101 compliant resource estimates in 2006, 2007, 2009, 2012.
- Positive Stage 1 Underground and Stage 2 Open Pit Feasibility Studies completed.
- Stage 1 project construction started in 2012.
- Received State permits for Stage 1 underground mine development
- Begin the process for open pit mine operating permits
- Completed a positive 70,000 tpd stand-alone (Stage 2) open pit feasibility study
- Secured a US$200 million senior secured loan facility and copper concentrate off-take agreement with RK Mine Finance
- Executed a US$24 million equipment finance facility with Caterpillar Financial Services Corporation for the Stage 1 underground development
- Commenced engineering and procurement for the Stage 1 underground operations
- Congressional legislation enacted to convey 10,400 acres of federal lands to the City of Yerington to expedite mine development
Federal Land Conveyance
The Pumpkin Hollow project is located both on private land and unpatented mining claims located on Bureau of Land Management (“BLM”) administered federal lands. Legislation was passed in 2014 to convey the federal lands to the City of Yerington (the “City”).
The National Defense Authorization Act (“NDAA”) was signed into law on December 19, 2014. Section 3009 of the NDAA, the “Land Conveyance to Yerington, Nevada”, directs the sale of approximately 10,400 acres of land from the federal government to the City. Nevada Copper is working with the City and the Bureau of Land Management (BLM) to ensure the land conveyance is completed in 2015 as provided for in the law.
Upon completion of the land conveyance in mid-2015 that portion of the lands associated with the project will then be conveyed to Nevada Copper for mine operations. As a result, the entire Pumpkin Hollow project will be located on private lands owned or controlled by Nevada Copper.
The land conveyance will allow the City to annex the mine operations and therefore receive a portion of both property tax and Nevada net proceeds of mines taxes. It would also provide additional lands available for the City and Nevada Copper for other commercial and industrial development, solar energy development, recreational opportunities, and expansion of community and cultural events.
Once the project is located within the City, the project will be governed by a development agreement with the City.
Nevada Copper also has a water service agreement with the City sufficient to supply the project.
Pumpkin Hollow Project – A Clear Path to Production
Pumpkin Hollow has overwhelming support from the community, Yerington, Lyon County and the State of Nevada. Environmental baseline studies have been conducted and will be completed in conformance with all Federal, State and local standards. That assures that the project is designed, constructed and operated to meet those standards.
There are no land use conflicts, endangered or threatened species, critical wildlife habitat, sage grouse, nesting golden eagles, surface waters, groundwater conflicts with adjacent agricultural areas, cultural resources, Native American sites, wilderness areas near the project, or other issues that could delay development of the project.
The key permit from the State of Nevada, the Water Pollution Control Permit, has been received for both the underground and open pit stages of the project. The other two key permits, the reclamation and air quality permits have been issued for the underground facilities and only require modification to include the open pit facilities.