NEVADA COPPER | Pumpkin Hollow, Production, Positive PEA

Matthew Gili, the President, CEO, and Director of Nevada Copper sits down with Proven and Probable to discuss the unique value proposition of the Pumpkin Hollow Copper Project and fulfilling their commitment on becoming North America’s Next Large-Scale Copper Producer.  Mr. Gili, will provide current and prospective shareholders insights regarding two monumental press releases just issued regarding the 2 deposits, the underground deposit and the open-pit deposit) located on the Pumpkin Hollow Copper Project.

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AUDIO

TRANSCRIPT

Maurice Jackson: 

Welcome to Proven and Probable. I’m your host Maurice Jackson. Joining us for conversation is Matthew Gili. He is the president and CEO of Nevada Copper, North America’s next copper producer. Mr. Gili, welcome to the show, sir.

Matthew Gili: 

Thank you very much, Maurice. It’s a pleasure to talk to you today.

Maurice Jackson:    

In our previous interview, Nevada Copper announced a construction decision for the Pumpkin Hollow underground project. For those that missed this historic announcement, please share the details.

Matthew Gili: 

First I want to remind the audience that Nevada Copper controls Pumpkin Hollow. Pumpkin Hollow has two distinct deposits, the open pit and the underground. The August 28th announcement was specific to the underground. I’m very proud of the results of the construction decision. That’s going to allow us to be able to construct. We’re fully funded to construct the underground at Pumpkin Hollow, very strong project. NPV five percent of over 300 million U.S. dollars, IRR of 25%. That project is in construction right now with commissioning to commence in the fourth quarter of 2019. That project’s going to allow us to have an average annual free cash flow of about $80 million for the first five years of operation.

Maurice Jackson:  

Now let’s move on to the second deposit at the Pumpkin Hollow, the open pit. Last week, Nevada Copper issued a press release regarding positive PEA results. What can you share with us?

 

Matthew Gili:

Well, Maurice, very pleased with the results of the PEA. We have an NPV of greater than $1 billion U.S. dollars, an IRR greater than 20%. This is a very strong project with an annual production of $167 million pounds of copper in concentrate, and a very robust cash cost of $1.67 a pound.

Maurice Jackson: 

You know, for our audience, I was at the Pumpkin Hollow project last week when the announcement was made regarding the positive PEA and one could really appreciate the sense of pride and accomplishment for the entire team. Let me ask you this, Mr. Gili, what has got you most excited about this open pit PEA?

Matthew Gili: 

What I’m most excited about is the optionality that’s built into this PEA. It’s really in two phases, phase one and phase two. Phase one is the initial production plan for the open pit, targeting high-grade material, targeting free cash flow generation and being very capital efficient. That is a brilliant standalone project in its own right. Then we have the optionality in years six through eight, to look at an expansion to the open pit, which again is value accreting and brings in more value, but always knowing that we have the optionality to choose phase two when it best suits the organization.

Maurice Jackson:

Matthew, let’s cover two important timelines for current and prospective shareholders. Beginning with the underground, when are we looking at going into production?

Matthew Gili: 

All right. For the underground, as you know we’re in construction today. Teams are in place and work is occurring. The next real phase for the underground is gonna be commissioning in the fourth quarter 2019, ramping up to full production by mid year 2020. Right now, our base case is for construction to commence on the open pit in the latter part of 2020. That’ll be about an 18 to 24 month construction timeline. I do point out that the open pit is fully permitted and again that allows us a lot of flexibility when it’s best for us to start that, but right now, base case end of year 2020.

Maurice Jackson: 

Mr. Gili, what is the ultimate goal for Nevada Copper?

Matthew Gili: 

Nevada Copper’s going to be the next mid-tier copper producer centered in North America. We come with this with three tiers to our strategy. First, develop, commission, operate the underground mine. Second, really get the story out there in the open pit and unlock its full potential. Third, regional player, this is a … Yerington is a brilliant area for copper production. Historically it’s been a major copper producer and we look forward to the continued growth of the Yerington district.

Maurice Jackson: 

Multi-layered question here. What is the next unanswered question for Nevada Copper, when should we expect results, and what determines success?

Matthew Gili:  

We had a very successful drilling campaign this year. Really targeting the open pit, all of them intersected mineralization. The next big result for Nevada Copper, Pumpkin Hollow, is going to be an updated pre-feasibility study for the open pit. That will come out in the first quarter of 2019. That pre-feasibility study is going to incorporate the results of this years drilling campaign. We look forward to some real positive results.

Maurice Jackson: 

Last question. What did I forget to ask?

Matthew Gili:   

I think the question I would ask is about the team. We are doing a lot of work at Pumpkin Hollow. We’re developing an underground mine, we’re advancing an open pit study. A very valid question would be, “Have you assembled the right team of people, have you been able to attract the talent you need to successfully execute this strategy?” I’m very pleased to say we have attracted that top rate talent. We are a very solid team, executing to our commitments. Very proud on everyone’s input.

Maurice Jackson:  

Matthew, for someone listening that wants to get more information about Nevada Copper, please share the contact details.

Matthew Gili: 

You can find us on the web at www.nevadacopper.com. There’s an updated investor presentation on the website, please review that. Look it over, I think you’ll be very excited as I am with the results of Nevada Copper.

Maurice Jackson:  

For our audience, we wish to remind you that Nevada Copper trades on the TSX, symbol NCU and on the OTC, symbol NEVDF. For additional inquiries contact Richard Matthews, 877-648-8266. That number again, is 877-648-8266. Or you may email rmatthews@nevadacopper.com.

Maurice Jackson: 

As a reminder for our listeners, Nevada Copper is a sponsor of Proven and Probable and that we’re proud shareholders of Nevada Copper for the virtues conveyed in today’s message.

Maurice Jackson:

Last but not least, please visit our website, provenandprobable.com, where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.

Maurice Jackson:

Matthew Gili of Nevada Copper, thank you for joining us today on Proven and Probable.

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