TORONTO (miningweekly.com) – TSX-listed Nevada Copper is now fully permitted to start construction and operate its $1.04-billion Pumpkin Hollow openpit and underground copper project, in Nevada, which CEO and president Giulio Bonifacio describes as one of the best mining jurisdictions in the world.
"This makes Pumpkin Hollow an attractive and scarce copper asset,” he said in a statement on Monday.
The final reclamation permit was rendered effective as of August 14, as no appeals were filed during the appeal period for the outstanding revised reclamation permit, which expired on August 9, the Vancouver-based project developer explained.
"A fully permitted project is an enormous achievement and, for Pumpkin Hollow, is the culmination of years of effort by many people.
"Pumpkin Hollow has a long life and low operating cost, confirmed by our integrated feasibility study, with additional upside demonstrated by recent drilling results,” Bonifacio commented.
The Pumpkin Hollow copper project had proven and probable mineral reserves, including openpit and underground, of 572-million tons of ore, grading at 0.47% copper equivalent and containing 5.05-billion pounds of copper, 761 000 oz of gold and 27.6-million ounces of silver.
The feasibility study had confirmed the technical and financial viability of building and operating a 70 000 t/d copper mining and processing operation, comprising a large concentrator with mill feed from openpit and underground operations.
The project development proposed a 63 500 t/d openpit mine and 6 500 t/d underground mine feeding the concentrator, generating substantial yearly cash flow over the life-of-mine.
The project had a net present value, at a 5% discount rate, of $1.1-billion, and an after-tax internal rate of return of 15.6%, with 4.7-year payback.
Nevada Copper continued to advance financing options and expected these developments to further enhance financing opportunities.