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Market Cap £150.2m
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Nevada Copper Announces Further Progress With Underground Operations and Strategic Project Development

Mon 12th July, 2021 10:30pm
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YERINGTON, Nev., July 12, 2021 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX:
NCU) (OTC: NEVDF) (“Nevada Copper” or the “Company”) is pleased to
provide an update regarding the ramp-up of the Underground Mine and
development activities for the Open Pit project at its 100%-owned,
fully-permitted Pumpkin Hollow Project in Nevada.

Production Ramp-Up Update
* Safe and effective penetration of dike structure: The Company is in the
process of safely completing the dike crossing. As reported on May 17, 2021,
ground and hydrological conditions associated with the dike reduced
development rates for a temporary period while traversing the dike to allow
for grouting and ground control. With the completion of the dike crossing
within the next two weeks, the Company expects to see lateral development
rates increase back to planned rates this month.
* Underground ventilation commissioned on-schedule: All underground
ventilation fans were installed and commissioned during May, as planned. The
final surface fans continue to be planned for delivery in Q3 2021 and
commissioning in Q4 2021. Consequently, achievement of steady-state production
continues to be expected in Q4 2021.
* Successful completion of process plant C5 Testing: During June, Sedgman
successfully completed C5 testing of the processing plant for grind size and
Mike Ciricillo, Nevada Copper’s Chief Executive Officer, stated:

“I am pleased with the continued progress with the ramp-up from Pumpkin
Hollow. The safe penetration of the dike and commissioning of the underground
ventilation system are significant de-risking steps and facilitate increasing
development and production rates, as we progress to steady-state. The
longer-term mine planning work being advanced indicates future potential
upside for both Underground and Open Pit projects.”

Project Development
* Underground Mine Planning supports potential for higher long-term production
rates: As part of its project development objectives reported on March 1,
2021, the Company has progressed its life-of-mine planning aimed at operating
its underground mine at an ultimate production rate in excess of the
originally contemplated 5,000 tons per day rate. Mine planning work during Q2
2021 further supports the potential for the mine, once ramped-up to
steady-state, to operate at higher long-term rates of 6,500 tons per day
milled, increasing long-term annual copper production. This additional
production capacity would also support accelerated mining of the significant
additional underground copper resources that exist over and above the current
underground reserve. Further engineering work will be undertaken during H2
2021 to support the potential for a higher long-term production rate from the
underground operation.
* Open Pit Solar Power Study indicates potential to further reduce Open Pit
power costs: The Company has also progressed the planned feasibility studies
for a potential solar project, with renewables consulting group Sprout
Associates, with the following initial conclusions. Further updates will be
provided upon completion of the next phase of study work: * Pumpkin Hollow
benefits from ample sun and land to support a large solar project with the
capacity to meet a significant portion of the Open Pit project’s power
* The solar potential at the site is up to 200MW;
* Already low grid power costs in Nevada could be materially further reduced
through an on-site solar plant; and
* A third-party solar project provides an option to remove upfront power
infrastructure costs from the Open Pit project.
Balance Sheet Update
* Further to the Company’s announcement on May 17, 2021, Pala Investments
Limited has agreed to provide additional financing of US$25 million through a
promissory note (in addition to the fully drawn existing US$30 million credit
facility), providing additional liquidity for the ramp-up and addressing the
reduced development rates associated with the dike grouting program. The
Company has drawn US$15 million under the promissory note, with subsequent
draws available at the Company’s option, subject to agreed use of proceeds.
The promissory note has a maturity date of June 30, 2022 and bears interest at
8% per annum on amounts drawn. The promissory note was reviewed and approved
by the independent members of the Company’s board of directors. In addition,
US$9 million remains available to draw under the Company’s working capital
facility with its offtake partner, Concord Resources Limited.
* The Company has received proceeds of CAD$1.4 million for exercise of
warrants so far in 2021. The Company has the potential to receive a further
CAD$65 million of warrant proceeds should all the outstanding warrants
expiring in January 2022 with an exercise price of CAD$0.20 (the “January
2022 Warrants”) be exercised prior to maturity. In addition to the January
2022 Warrants, a further CAD$34 million of warrant exercise proceeds may be
received should the outstanding warrants expiring in July 2022 with an
exercise price of CAD$0.22 be exercised in full prior to maturity.
* The Company’s senior lender, KfW IPEX-Bank (“KfW”), has provided the
Company with a 60-day extension to the project completion longstop date from
June 30, 2021 to August 31, 2021, while the parties agree on a revised
completion test and longstop date for the project. The Company will provide a
further update once a revised project completion test and longstop date has
been agreed with KfW. While the Company expects to agree on an appropriate
revised date with KfW, there can be no assurance this will be achieved.
* The Company continues to undertake near-term mine planning to incorporate
the recent impact of the dike on development rates and other factors that have
slowed the production ramp-up. It is possible that such mine plan updates may
indicate higher operating costs and additional development capital and working
capital requirements for the ramp-up than previously contemplated.
Qualified Persons

The information and data in this news release was reviewed by Greg French,
C.P.G., and Norm Bisson, P.Eng., for Nevada Copper, who are non-independent
Qualified Persons within the meaning of NI 43-101.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow
copper project. Located in Nevada, USA, Pumpkin Hollow has substantial
reserves and resources including copper, gold and silver. Its two fully
permitted projects include the high-grade Underground Mine and processing
facility, which is now in the production stage, and a large-scale Open Pit
project, which is advancing towards feasibility status.


Mike Ciricillo, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
+1 604 757 7179

Cautionary Language

This news release includes certain statements and information that constitute
forward-looking information within the meaning of applicable Canadian
securities laws. All statements in this news release, other than statements of
historical facts are forward-looking statements. Such forward-looking
statements and forward-looking information specifically include, but are not
limited to, statements that relate to mine development plans, production and
ramp-up plans and the expected timing and results thereof, equipment
installation, and further discussions with KfW.

Often, but not always, forward-looking statements and forward-looking
information can be identified by the use of words such as “plans”,
“expects”, “potential”, “is expected”, “anticipated”, “is
targeted”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates”, or “believes” or the negatives thereof
or variations of such words and phrases or statements that certain actions,
events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved. Forward-looking statements or
information are subject to known or unknown risks, uncertainties and other
factors which may cause the actual results and events to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks
and uncertainties which could cause actual events or results to differ from
those reflected in the forward-looking statements or information, including,
without limitation, risks and uncertainties relating to: the ability of the
Company to complete the ramp-up of the Underground Mine within the expected
cost estimates and timeframe; requirements for additional capital and no
assurance can be given regarding the availability thereof; the impact of
COVID-19 on the business and operations of the Company; the state of financial
markets; history of losses; dilution; adverse events relating to milling
operations, construction, development and ramp-up, including the ability of
the Company to address underground development and process plant issues;
ground conditions; cost overruns relating to development, construction and
ramp-up of the Underground Mine; loss of material properties; interest rates
increase; global economy; limited history of production; future metals price
fluctuations; speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities; environmental
hazards and liability; industrial accidents; failure of processing and mining
equipment to perform as expected; labor disputes; supply problems; uncertainty
of production and cost estimates; the interpretation of drill results and the
estimation of mineral resources and reserves; changes in project parameters as
plans continue to be refined; possible variations in ore reserves, grade of
mineralization or recovery rates from management’s expectations and the
difference may be material; legal and regulatory proceedings and community
actions; accidents; title matters; regulatory approvals and restrictions;
increased costs and physical risks relating to climate change, including
extreme weather events, and new or revised regulations relating to climate
change; permitting and licensing; volatility of the market price of the
Company’s securities; insurance; competition; hedging activities; currency
fluctuations; loss of key employees; other risks of the mining industry as
well as those risks discussed in the Company’s Management’s Discussion and
Analysis in respect of the year ended December 31, 2020 and in the section
entitled “Risk Factors” in the Company’s Annual Information Form dated
March 18, 2021. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described in forward-looking statements or
information. The forward-looking information and statements are stated as of
the date hereof. The Company disclaims any intent or obligation to update
forward-looking statements or information except as required by law.

The Company provides no assurance that forward-looking statements and
information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements and information. 


GlobeNewswire, Inc. 2021
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