- Published: 15 July 2009
- Written by Editor
Nevada Copper Reports Significant Resource Increase to 9.3 Billion Pounds Copper & 1.45 Million Ounces of Gold, Including 42% Increase to Measured & Indicated
Nevada Copper Corp. (TSX:NCU) ("Nevada Copper") is pleased to announce it has completed an updated National Instrument 43-101 compliant resource estimate for its 100% owned Pumpkin Hollow IOCG Property in Nevada. Copper, gold and iron resources have increased significantly while showing substantial increases in the Measured and Indicated ("M & I") categories.
The increase in the total resources is largely due to the very successful expansion of open mineralization and focused resource classification drilling during 2008. The new resource estimate increased to 9.3 billion pounds of copper at a 0.20% cutoff, an increase of 1.4 billion pounds of copper or 18% from the November 2007 resource of 7.9 billion pounds. The following are highlights of the new resource estimate:
- 42% Increase of the M & I copper resource to 5.6 billion pounds (0.20% cutoff);
- 55% Increase of the M & I gold resource to 983,000 ounces;
- 47% Increase of the M & I and Inferred Iron resource in the Western deposits to 362 million tons averaging 35.8% iron (20% cutoff);
- 74% Increase of M & I open pit Western deposits copper resource to 198 million tons averaging 0.66% copper (0.30% cutoff);
- Eastern underground deposits now contain a M & I resource of 31 million tons averaging 1.83% copper and an Inferred resource of 9 million tons of 1.67% copper (1.0% cutoff); and
- Total gold resource of 1.45 million ounces and 55 million ounces of silver (0.20% cutoff).
The resource estimate was prepared by the mineral resource and mining division of Tetra Tech MM Inc., an industry leading international engineering firm.
The detailed resource summary is as follows:
MEASURED and INDICATED RESOURCES ------------------------------------------------------------------ Copper Tons Copper lbs Copper Gold Silver % Cutoff (thousands) % Grade (thousands) (ounces) (ounces) ------------------------------------------------------------------ 0.20 488,228 0.58 5,619,266 983,000 33,763,000 ------------------------------------------------------------------ 0.30 334,952 0.73 4,869,128 819,000 26,734,000 ------------------------------------------------------------------ 0.75 96,018 1.36 2,610,236 402,000 11,907,000 ------------------------------------------------------------------ 1.00 56,361 1.71 1,925,784 278,000 8,054,000 ------------------------------------------------------------------ Consisting of: MEASURED RESOURCES ------------------------------------------------------------------ Copper Tons Copper lbs Copper Gold Silver % Cutoff (thousands) % Grade (thousands) (ounces) (ounces) ------------------------------------------------------------------ 0.20 125,053 0.67 1,671,891 331,000 9,780,000 ------------------------------------------------------------------ 0.30 92,179 0.82 1,509,738 294,000 8,269,000 ------------------------------------------------------------------ 0.75 32,093 1.45 931,988 168,000 4,332,000 ------------------------------------------------------------------ 1.00 20,366 1.79 730,147 124,000 3,182,000 ------------------------------------------------------------------ INDICATED RESOURCES ------------------------------------------------------------------ Copper Tons Copper lbs Copper Gold Silver % Cutoff (thousands) % Grade (thousands) (ounces) (ounces) ------------------------------------------------------------------ 0.20 363,175 0.54 3,947,375 652,000 23,983,000 ------------------------------------------------------------------ 0.30 242,773 0.69 3,359,390 525,000 18,466,000 ------------------------------------------------------------------ 0.75 63,925 1.31 1,678,248 234,000 7,575,000 ------------------------------------------------------------------ 1.00 35,995 1.66 1,195,637 154,000 4,872,000 ------------------------------------------------------------------ And: INFERRED RESOURCES ------------------------------------------------------------------ Copper Tons Copper lbs Copper Gold Silver % Cutoff (thousands) % Grade (thousands) (ounces) (ounces) ------------------------------------------------------------------ 0.20 440,826 0.42 3,695,093 468,000 21,214,000 ------------------------------------------------------------------ 0.30 229,632 0.58 2,678,451 313,000 14,469,000 ------------------------------------------------------------------ 0.75 39,645 1.28 1,016,031 112,000 4,673,000 ------------------------------------------------------------------ 1.00 21,160 1.65 696,843 70,000 3,104,000 ------------------------------------------------------------------
Further details of the updated resource estimate by deposit and applicable mining method are as follows:
MEASURED & INDICATED RESOURCE by DEPOSIT
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Copper lbs
Cu % Tons Grade Copper Gold Silver
Deposit Type Cutoff (thousands) % (thousands) (ounces) (ounces)
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Western Open Pit 0.20 305,965 0.51 3,125,463 532,000 20,872,000
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Western Open Pit 0.30 197,652 0.66 2,596,183 426,000 15,795,000
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Eastern U/G 0.75 48,496 1.47 1,429,043 233,000 5,994,000
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Eastern U/G 1.00 30,508 1.83 1,117,157 180,000 4,370,000
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INFERRED RESOURCE by DEPOSIT
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Copper lbs
Cu % Tons Grade Copper Gold Silver
Deposit Type Cutoff (thousands) % (thousands) (ounces) (ounces)
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Western Open Pit 0.20 229,989 0.42 1,917,518 229,000 12,883,000
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Western Open Pit 0.30 118,854 0.58 1,387,536 141,000 8,412,000
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Eastern U/G 0.75 20,305 1.22 496,222 71,000 2,116,000
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Eastern U/G 1.00 9,026 1.67 302,262 42,000 1,203,000
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Nevada Copper is also pleased to report that significant potential continues to exist to further expand the resource with open mineralization fronts remaining in the Eastern and Western deposits. As currently designed the Eastern deposits will share a common underground access and the Western deposits will have a common open pit high wall. All deposits are within one mile of each other and contained on private patented claims.
The updated resource is based on a database that now consists of 530 drill holes containing in excess of 222,500 meters (730,000 feet) of drilling and over 42,000 assays. The 2008 program consisted of 73 resource, hydrological, and geotechnical holes that totaled over 26,600 meters (87,300 feet) and were incorporated into the updated resource estimate.
Gregory French, CPG, M.Sc., commented, "The 2008 drilling program proved to be extremely successful with a combination of both infill drilling and targeting open mineralization. First, the infill drilling improved the continuity and confidence in the mineralization. Secondly, the resource was expanded where new mineralization was encountered. The combination of the two produced a 42% increase in the Measured and Indicated resource categories and a significant increase to the total contained metal. These increases will have a very positive impact on the already robust economics of the project. Future drilling will build on this large and high grade resource with a focus on defining several open mineralized areas."
As a result of the significant increases in the updated resource estimate, Nevada Copper intends to update its Preliminary Economic Assessment ("PEA") to incorporate these results and recent positive results of its internal optimization studies. The internal optimization studies have focused on developing a production profile that results in largely reduced capital costs, higher grade resources while also being resilient to lower copper prices.
The updated PEA will commence immediately, followed by a Feasibility Study in 2009.
Iron Resource
Nevada Copper has also updated its stand alone resource estimate of the iron resource at Pumpkin Hollow. As previously disclosed this will allow Nevada Copper to better access 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 express only those iron resources amenable to open-pit mining methods in the Western deposits:
IRON RESOURCE MEASURED & INDICATED RESOURCES -------------------------------------------- Iron Tons Iron Tons Iron % Cutoff (thousands) % Grade (thousands) -------------------------------------------- 10 306,420 30.04 92,057 -------------------------------------------- 20 209,399 37.30 78,100 -------------------------------------------- 30 142,913 43.01 61,472 -------------------------------------------- INFERRED RESOURCES -------------------------------------------- Iron Tons Iron Tons Iron % Cutoff (thousands) % Grade (thousands) -------------------------------------------- 10 440,138 20.67 90,986 -------------------------------------------- 20 152,109 33.83 51,454 -------------------------------------------- 30 85,690 40.87 35,022 --------------------------------------------
Potentially open pit iron resources at Pumpkin Hollow are 130 million tons of contained iron in 361 million tons at an average grade of 36% iron at a 20% iron cutoff. Iron occurs predominately as magnetite and historic metallurgical test-work has demonstrated the ready amenability of generating a marketable pellet feed concentrate. The iron deposits at Pumpkin Hollow remain open in several directions.
A NI 43-101 report on the Pumpkin Hollow resource estimate will be available within 45 days on SEDAR at www.sedar.com. Nevada Copper is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect its estimate of mineral resources.
Qualified Person
The mineral estimation work was performed by or under the direction of John Rozelle, PG, Tetra Tech's Mineral Resource Division Principal Geologist, an independent Qualified Person as set forth by Canadian National Instrument 43-101. The Pumpkin Hollow project is under the supervision of Gregory French, CPG #10708, a Qualified Person as defined in Canadian National Instrument 43-101, who is responsible for the preparation of the technical information in this news release. All assaying and whole rock geochemistry is processed at the American Assay Laboratories (AAL) in Reno, Nevada. Samples are delivered from the project core logging facility to AAL by Nevada Copper or AAL personnel. A Quality Assurance and Quality Control Assay Protocol have been implemented whereby blanks and standards are inserted into the assay stream and check samples are sent to Chemex-Reno and Inspectorate-Reno laboratories.
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
CAUTIONARY NOTE
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including estimates of resources, mineralization and planned exploration activities; the likelihood of commercial mining and possible future financings are forward-looking statements. Although Nevada Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper's annual filings that are available at www.sedar.com.
Contact:
Contacts:
Nevada Copper Corp.
Giulio T. Bonifacio
President & CEO
604-699-0023
This email address is being protected from spambots. You need JavaScript enabled to view it.
Nevada Copper Corp.
Joe Kircher
Vice President & COO
775-463-3510
www.nevadacopper.com
