Nevada Copper Corp. – Developing Nevada’s Next Major Copper Mine
Overview
Nevada Copper Corp. (TSX:NCU) is an exploration and development company focused on its Pumpkin Hollow Copper Property in western Nevada. It is an advanced stage property with a measured and indicated resource estimate of 5.9 billion pounds of copper, 1.6 million ounces of gold, 42 million ounces of silver, and 111 million tons of iron. In July 2011, Nevada Copper announced a bought deal common share financing with a syndicate of underwriters for 12,050,000 common shares for total proceeds of $65,070,000. The underwriters also have the option to purchase additional common shares at the offering price to raise proceeds of up to 15% of the initial offering.
Investment Highlights
- NI 43-101 Compliant Resource (0.20% Copper Cutoff):
M&I Resources > 5.9 Billion pounds of CopperInferred Resources > 3.7 Billion pounds of Copper
- Aggressive 50,000 Meters Plus Expansion Drilling Program- 3 Drilling Rigs
- Definitive Feasibility Study to be completed at the end of Q4
Chief Property
Pumpkin Hallow Copper Property – Lyon County, Nevada, United States
Nevada Copper’s 100% owned Pumpkin Hollow Copper Property is 8 miles southeast of Yerington, Lyon County, Nevada, an hour and a half away from Reno. Pumpkin Hollow covers 22 square miles of claims, accessible by paved road. Its infrastructure includes a power line on the property, a nearby natural gas supply and rail siding, and a local labor force.
The high-grade deposit lies within the Walker Lane belt in the Yerington copper porphyry district. Up to 2001, over 180,000 meters of drilling, several economic studies, and metallurgical and geophysical testing were carried out at Pumpkin Hollow. Nevada Copper acquired the property in 2005 and conducted over 45,000 meters of drilling in its 2007 and 2008 programs, along with metallurgical, geotechnical, and environmental studies.
The company released NI 43-101 compliant resource estimates in 2006, 2007, and 2008 and issued a Preliminary Economic Assessment in 2008. An updated PEA was released in 2010, claiming a US$498 million NPV for the property, assuming a US$2.50 copper price. Nevada Copper released an updated resource estimate in March, announcing measured and indicated resources of 5.9 billion pounds at a .20% cutoff. This estimate included an increase in gold to 1.6 million ounces and silver to 42 million ounces. The inferred copper resource remained unchanged from the 2009 estimate, at 3.7 billion pounds at a .20% cutoff, and iron resources totaled 341 million tons at a grade of 33%.
In May, the company announced that Definitive Feasibility Study drilling was complete, and positive assay results from the DFS drilling as well as preliminary results from the 20,000 meter step-out expansion program had extended the resource and confirmed continuity of high-grade mineralization at both East and North deposits. Results released in June expanded the deep mineralization NC10-GT10 intersected in May even further, finding an upper zone of 320 ft, averaging 1.08% copper, 0.164 grams gold, 4.2 grams silver, and 0.017% molybdenum and a lower zone of 785 feet, averaging 0.73 % copper, 0.048 grams gold and 1.2 grams silver.
In September, 2011, the company announced that the City of Yerington and Lyon County, in cooperation with Nevada Copper, are very pleased to announce that they will be moving forward with a transfer of Bureau of Land Management (“BLM”) administered federal lands to the City. This land transfer would both expand economic development opportunities for the City and accelerate the permitting timeline of the Pumpkin Hollow project under a local and State permitting process with production targeted to commence in 2015. Without the land transfer, the Integrated Operation could be permitted and developed under a federal and state permitting process with production targeted to commence in early 2017.
Based upon the proposed land transfer, Nevada Copper has elected to expand the scope of its DFS to include an integrated operation that includes both an open pit and underground mine feeding a single large nominal 60,000 ton per day mill (“Integrated Operation”). The final mill throughput rate will be established with further test-work. It is expected that the Integrated Operation will significantly reduce capital costs while also lowering operating costs.
Management
Giulio T. Bonifacio, President and CEO
Mr. Bonifacio has over 26 years in senior executive positions in the mining industry. Mr. Bonifacio is the founder, President & CEO of Nevada Copper Corp. and has a successful track record of raising equity and project capital for development projects of merit. Mr. Bonifacio is a professional accountant with extensive experience and knowledge in areas of corporate finance, securities matters, project finance and mergers & acquisitions.
Mr. Bonifacio has held senior executive roles with Getty Resources Limited, TOTAL S.A. and Vengold Inc.
Robert McKnight, Executive Vice President
Mr. McKnight is a Professional Engineer and MBA with over 30 years of experience in the resource business with a wealth of knowledge in project finance, mergers and acquisitions, feasibility studies and valuations. Mr. McKnight is a geological engineer with broad experience in the mining industry having held senior roles with Brascan Resources, Wright Engineers, Getty Resources, TOTAL S.A., Endeavour Financial, Pincock Allen & Holt Ltd., AMEC, Yukon Zinc and most recently Selwyn Resources. Mr. McKnight is a graduate of the University of British Columbia and Simon Fraser University with degrees in Geological Engineering and Business Administration.
Greg French, Vice President, Senior Project Manager
Mr. French is a geologist with over 25 years of exploration experience in the western US and Canada. He has worked in various capacities for Homestake Mining Co., Atlas Precious Metals, and Cornerstone Industrial Minerals as well as consulting for numerous junior mining companies. Mr. French has a Nevada gold discovery to his credit and extensive project development experience including two projects taken through feasibility and production.
Timothy M. Dyhr, Vice President, Environment & External Relations
Mr. Dyhr has 35 years of experience in mining. He has led multidisciplinary teams to successfully permit copper and gold mines in Nevada since 1983, and worked on projects in Arizona, California, Washington, Montana, Wyoming, Peru, Chile, Argentina, Australia, Africa, Turkey, China and Papua New Guinea. His experience includes environmental, regulatory, land and legal affairs; and government, media, NGO and public relations. He has worked as a mine site environmental manager, environmental consultant, natural resources manager, and group environmental manager for BHP Copper.
Timothy Dake, General Manager, Project Construction
Mr. Dake has over 30 years of experience in the mining and construction industries. He has worked in diverse capacities in mining and mineral processing in Indonesia, Chile, Russia and Brazil as well as Montana, Arizona, Alaska and Nevada. He is a mechanical engineer with a successful record of project leadership from concept to completion.
Joe Chan, Vice President and CFO
Mr. Chan is a professional accountant with over 25 years of accounting, administration and system experience in the mining industry. From 1992 to 2002, Mr. Chan held various positions with Teck Cominco Limited including 6 years as Controller for its wholly own subsidiary Quintette Operating Corporation and four years in a senior financial role for its US $2.5 billion Antamina copper project in Peru. Mr. Chan has served in senior financial roles for various public companies since 2003.
Brian Kirwin, Non Executive Chairman
Former Vice President, Exploration of Vengold 1997-2000; 1990-1997 Placer Dome Inc. in various senior roles. M.Sc. Mineral Exploration with over twenty years involved in international exploration evaluating deposits, mines and investment conditions worldwide. Credited with three satellite deposit discoveries on advanced projects in Nevada. Co-Founder of Nevada Copper.
Paul Matysek, Director
Mr. Matysek has over 25 years of experience in the mining industry and is an experienced geochemist and geologist with a Bachelor of Science degree and a Master of Science degree in Geology. Mr. Matysek has held senior management and director positions with several natural resource exploration and development companies. Mr. Matysek currently holds the position of President and CEO of Potash One Inc. Potash One Inc. is an agriculture focused resource development company well positioned to benefit from the growing global demand for food, feed and biofuels.
Most recently Mr. Matysek was the President & CEO of Energy Metals Corporation, a premiere uranium company traded on New York Stock and Toronto Stock Exchanges. Energy Metals became one of the fastest growing companies in Canada in the last few years having grown from a market capitalization of only $10 million in 2004 to approximately $1.5 billion when it was acquired by a larger uranium producer in 2007.
Joe Giuffre, Director
Mr. Giuffre has over eighteen years of combined experience in business and legal matters, and has a transaction-based practice in the areas of corporate finance, securities, mining, corporate structuring, project finance, mergers and acquisitions. Mr. Giuffre has extensive experience acting for Canadian public companies with an international focus, many of which have progressed from private start-up companies to publicly-listed emerging companies trading on the TSX Venture Exchange, the Toronto Stock Exchange, American Stock Exchange or NASDAQ.
Foster Wilson, Director
Mr. Wilson is the President and CEO of Mesa Uranium Corp., a uranium exploration company. Mr. Wilson has over 23 years of experience in exploration and development projects ranging from reconnaissance to definition drilling, ore reserve estimation and feasibility studies. He also formerly worked with Placer Dome Exploration 1990-1999 and Echo Bay Exploration 1985-1990.
Jan Castro, Director
Mr. Castro is the Chief Executive Officer of Pala Investments AG, the exclusive advisor to Pala Investments Holdings Ltd., a multi-strategy investment company dedicated to investing in, and creating value across, the mining sector in both developed and emerging markets. Pala seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions.
Prior to founding Pala in July 2006, Mr. Castro was Senior Vice President of Investments and Corporate Affairs for Mechel OAO, a NYSE-listed company and one of Russia’s largest mining and metals companies listed on the New York Stock Exchange. Mr. Castro currently serves on the Boards of Capstone Mining Corp, Alacer Gold Corp, Churchill Mining PLC and Gemcom Software International Inc. Mr. Castro is also Chairman of Sierra Rutile Ltd.
