Nevada Copper (NCU.TO) is continuing to advance its Pumpkin Hollow project in Nevada as the open pit drilling has now been completed. The purpose of the drill program was to convert additional tonnage from the waste to the ore categories and to open up new mineralized horizons. It’s an understatement to say Nevada Copper was successful in doing so as the mineralisation at the South deposit was expanded, as well as the higher grade near-surface copper mineralisation in the north pit.
Additionally, we expect Nevada Copper to be able to convert several tens of millions of tonnes which were previously classified as waste, as an in-pit resource and this could have a huge impact on the value of the project as the mine life could be extended and an updated pit outline could improve the efficiency of mining the open pit.
But more importantly, Nevada Copper also has provided an update on the most important part of the company and the project; finding funding to pay for the construction of what will be Nevada’s next copper mine. Nevada’s official statement is pretty straightforward, and we have copied and highlighted the update.
On the financing front, a number of project finance banks have expressed interest in leading or participating in a large debt financing and the substantial mobile equipment fleet has attracted the interest of the major equipment lessors. A large smelter has also expressed interest in a long term concentrate purchase contract that could attract government loan guarantees and result in longer loan term and lower financing costs. On the project delivery front, the Company has been contacted by numerous engineering firms regarding EPCM work. In light of the current lack of work in mine construction, there are good opportunities for soliciting lump sum bids and cost savings in major areas of project capital. We are also examining opportunities for cost reductions and optimization in the flow sheet and process plant.
It sounds like the ‘large smelter’ could be Aurubis as the German government is one of the very few governments indeed providing loan guarantees for projects where a German company is involved.
Nevada Copper sounds upbeat about its financing projects, so we are still hopeful a decent financing package could be completed in due course.
> Click here to go to Nevada Copper’s website
Disclosure: The author holds a long position in Nevada Copper. Nevada Copper is a sponsor of the website. Please see our disclaimer for current positions.
