Nevada Copper Files Resource Update NI 43-101 Technical Report on SEDAR
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/19/12 -- Nevada Copper Corp. (TSX: NCU) ("Nevada Copper" or the "Company") has filed its National Instrument 43-101 Technical Report, Mineral Resource Update ("Mineral Resource Update") for its 100% owned Pumpkin Hollow Copper project located near Yerington, Nevada, on SEDAR (www.sedar.com). The Mineral Resource Update will also be available on Nevada Copper's website (www.nevadacopper.com).
Results from the Mineral Resource Update were previously announced on September 7, 2012. The Mineral Resource Update was prepared under the direction of Tetra Tech, Inc. ("Tetra Tech"), an industry leading international engineering firm.
The updated mineral resource includes the results of approximately 44,000 meters of resource delineation drilling completed during the period from October, 2010 to August, 2012. This program focused on expanding the Measured and Indicated ("M&I") copper resource primarily in the North and South open-pittable deposits (the "Western Deposits").
The following are highlights of the new mineral resource estimate, compared to the previously published January 2011 resource estimate. The details of tonnage and grades are contained in the resource tables below.
-- 26% Increase of the M&I copper resources for the Western Deposits -
increasing by 1.1 billion pounds to 5.4 billion pounds (0.15% cutoff);
-- 30% Increase of the M&I copper resource in the North Deposit -
increasing by 820 million pounds to 3.5 billion pounds (0.15% cutoff);
-- 20% Increase of M&I copper resources in the South Deposit - increasing
by 315 million pounds to 1.9 billion pounds (0.15% cutoff);
-- 1.1 billion pound increase of Total M&I copper resource to 6.8 billion
pounds for the combined Western and Eastern Deposits from 5.7 billion
pounds (0.15% cutoff - Western Deposits; and 0.75% cutoff - Eastern
Deposits);
-- Total Inferred copper resource of 1.7 billion pounds for combined
Western and Eastern Deposits (0.15% cutoff - Western Deposits and 0.75%
cutoff - Eastern Deposits);
-- 16% Increase of the M&I Iron Resource for the Western Deposits
increasing by 17.8 million tons to 129 million tons of contained iron
(20% cutoff); and,
-- Significant Increase in the Inferred Iron Resource for the Western
Deposits increasing by 19.9 million tons to 27.6 million tons of
contained iron (20% cutoff).
Since October 2010 the Eastern Deposits received limited drilling mainly along the edges of the deposits representing only 6% of the total drilling completed. As a result, the Eastern Deposits mineral resources have not been updated and are reported below as previously published.
On completion of the 2,200 foot, 24 foot diameter production-sized shaft currently underway, Nevada Copper anticipates commencement of an underground drilling program that will focus on several open areas of the East Deposit and the JK-34 target area.
In considering the cutoff grades in the tables below, it should be noted that the cutoff grades for the Eastern deposits and the Western Deposits are different due to differing mining methods and costs. The cutoff grade ranges in the resource tables below are specific to the individual deposits.
In preparing economic analyses, appropriate cut-off grades are determined for use for the mining plans, either underground or open pit, developed as part of any feasibility study. The cut-off grades used in resource tables below are indicative of those used in Nevada Copper's National Instrument 43-101 Technical Report-Feasibility Study filed on SEDAR (www.sedar.com) in February 2012.
The Pumpkin Hollow mineral resource summary, by deposit area, is as follows:
WESTERN DEPOSITS - MEASURED AND INDICATED RESOURCES - AS AT SEPTEMBER 2012
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Cutoff Contained Gold Gold Silver Silver Cu
Grade Tons Grade Copper Grade (000 Grade (000 Equiv.
Category (%Cu) (000) (%Cu) (000 lbs) opt ozs) opt ozs) %
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Measured 0.20 186,037 0.48 1,793,250 0.002 318 0.054 10,124 0.53
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Measured 0.15 237,915 0.41 1,954,874 0.002 368 0.049 11,620 0.46
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Indicated 0.20 348,389 0.43 3,023,109 0.001 478 0.052 18,141 0.46
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Indicated 0.15 494,141 0.35 3,493,351 0.001 613 0.045 22,414 0.38
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M&I Total 0.20 534,426 0.45 4,816,359 0.001 796 0.053 28,265 0.48
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M&I Total 0.15 732,056 0.37 5,448,225 0.001 981 0.046 34,034 0.40
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WESTERN DEPOSITS - INFERRED RESOURCES - AS AT SEPTEMBER 2012
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Cutoff Contained Gold Gold Silver Silver Cu
Grade Tons Grade Copper Grade (000 Grade (000 Equiv.
Category (%Cu) (000) (%Cu) (000 lbs) opt ozs) opt ozs) %
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Inferred 0.20 138,149 0.40 1,094,775 0.001 150 0.049 6,775 0.43
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Inferred 0.15 225,073 0.31 1,388,107 0.001 219 0.41 9,296 0.42
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Copper equivalency is based on $3.00 per pound for copper, $1400 per ounce
gold and $20 per ounce silver and metallurgical recoveries of 92%, 78% and
57.5% for copper, gold and silver respectively.
EASTERN DEPOSITS - MEASURED AND INDICATED RESOURCES - AS AT JANUARY 17, 2011
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Cutoff Contained Gold Gold Silver Silver Cu
Grade Tons Grade Copper Grade (000 Grade (000 Equiv.
Category (%Cu) (000) (%Cu) (000 lbs) opt ozs) opt ozs) %
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Measured 1.00 9,206 1.81 333,324 0.011 104 0.24 2,205 2.08
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Measured 0.75 12,497 1.56 390,372 0.01 128 0.216 2,699 1.81
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Indicated 1.00 24,338 1.72 835,589 0.01 247 0.245 5,971 1.97
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Indicated 0.75 38,092 1.4 1,069,452 0.008 321 0.213 8,118 1.61
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M&I Total 1.00 33,544 1.74 1,168,913 0.01 351 0.244 8,176 1.99
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M&I Total 0.75 50,589 1.45 1,459,824 0.009 449 0.213 10,817 1.68
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EASTERN DEPOSITS - INFERRED RESOURCES - AS AT JANUARY 17, 2011
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Cutoff Contained Gold Gold Silver Silver Cu
Grade Tons Grade Copper Grade (000 Grade (000 Equiv.
Category (%Cu) (000) (%Cu) (000 lbs) opt ozs) opt ozs) %
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Inferred 1.00 4,926 1.45 143,313 0.002 10 0.101 498 1.51
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Inferred 0.75 12,098 1.11 267,533 0.002 24 0.065 792 1.16
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Copper equivalency is based on $3.00 per pound for copper, $1400 per ounce
gold and $20 per ounce silver and metallurgical recoveries of 92%, 78% and
57.5% for copper, gold and silver respectively.
Tonnage, grades and totals in the tables above may not total due to rounding.
Iron Resources
Nevada Copper has also updated the standalone estimate of the iron resource at Pumpkin Hollow. Nevada Copper is continuing to assess the commercial viability of the large iron by-product found within, and contiguous to, the copper-gold-silver deposits at Pumpkin Hollow.
The following tables summarize only those iron resources amenable to open-pit mining methods in the Western deposits:
IRON RESOURCES WESTERN DEPOSITS - AS AT SEPEMBER 2012
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Tons Iron Grade Tons Iron
Category Iron % Cutoff (000s) % (000s)
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Measured 20 243,007 32.8 79,759
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Measured 30 133,897 39.4 52,736
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Indicated 20 157,219 31.4 49,140
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Indicated 30 71,188 39.4 28,041
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M&I Total 20 400,226 32.2 128,899
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M&I Total 30 205,085 39.4 80,777
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Inferred 20 93,127 29.6 27,562
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Inferred 30 35,408 38.8 13,721
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(i) Tonnage, grades and totals may not total due to rounding.
Gregory French, CPG, M.Sc., VP, Senior Project Manager, commented, "The drilling has proved to be extremely successful in expanding the M&I resources in the North and South deposits. The addition of more than 1.1 billion pounds of copper to the previously reported 4.3 billion pounds of copper in the M&I category is expected to have a positive impact on already robust project economics. The combination of converting waste and inferred material as well as new mineralization discovered in the North Deposit is expected to yield a larger and deeper ultimate North Pit that supports our expectation that the North and South pits have now merged.
Drilling results to date have exceeded our initial expectations as mineralization continues to remain open in the western deposits. The newly discovered mineralization in NC12-34 along the south border of the North deposit which was drilled and not included in the resource update intersected 690 feet of 1.17% copper. These results open up a very large area where previous drilling has not drill tested the mineralized zones. When drilling resumes, this area will be a top priority as mineralization remains open in several areas. Additionally, upon completion of the 2,200 foot shaft currently underway an underground drilling program will commence and will focus on several open areas of the East Deposit and the JK-34 target area."
Drill-Hole Database
The updated resource is based on a database that now consists of over 740 drill holes containing in excess of 335,200 meters (1,100,000 feet) of drilling and over 89,000 assays. The 2011 and 2012 program consisted of 94 resource holes totaling 47,700 meters (156,500 feet) and 10 hydrological, and geotechnical holes that totaled 3,900 meters (12,800 feet). Drilling is expected to resume by December 2012.
Qualified Person
The completed updated mineral resource estimate was prepared by the mineral resource and mining division of Tetra Tech Inc. an industry leading international engineering firm by, or under the direction of, Dr. Rex Bryan, SME Registered Member, an independent Qualified Person as set forth by Canadian National Instrument 43-101.
The Pumpkin Hollow drilling program is under the supervision of Gregory French, CPG, M.Sc., Vice President, Senior Project Manager of Nevada Copper Corp. Mr. French is a non-independent Qualified Person as defined in Canadian National Instrument 43-101 and is responsible for the preparation of the technical information in this news release.
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
We seek safe harbour.
Contacts:
Nevada Copper Corp.
Eugene Toffolo
VP, Investor Relations & Communications
604-683-8266 or Toll free: 1-877-648-8266
etoffolo@nevadacopper.com
Nevada Copper Corp.
Robert McKnight, P.Eng., MBA
Executive Vice President & CFO
604-683-1309
bmcknight@nevadacopper.com
www.nevadacopper.com