Earlier this week, Nevada Copper announced a $24-million equipment financing with Caterpillar Financial Services. Proceeds from the financing will go towards an overall project capital funding package for the company’s Stage 1 underground operation, currently under construction.
On October 3, the company released the results of its feasibility study for the Pumpkin Hollow copper project, located in Nevada. The study reports on the results of a stand-alone open-pit operation and builds on the company’s previously released feasibility studies, released in February and December 2012.
With the feasibility study, Nevada Copper has confirmed the technical and economic viability of constructing and operating a stand-alone 70,000-ton-per-day open-pit copper mining and processing operation.The company’s Stage 2 open-pit operation will be located in close proximity — 4 kilometers west — of its 6,500-ton-per-day Stage 1 underground operation.
Now that Nevada Copper has received all the necessary permits for Stage 1 of its operations, as well as the financing that was announced on October 1, it is well on its way to production from the Stage 1 operation. The company is anticipating production to start at Stage 1 in 2015 and expects to bring Stage 2 of the project online in 2016.
According to the feasibility study, open-pit proven and probable mineral reserves increased from 3.2 to 4.1 billion pounds of copper, a rise of 29 percent. Initial capital costs are estimated to be $926 million, including contingencies and excluding working capital of $23 million.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
Editorial Disclosure: Nevada Copper is a client of the Investing News Network. This article was not produced as part of their advertising campaign.