YeOldGoldNugget's Stock Picks: Nevada Copper Corp. (TSE:NCU)

Nevada Copper Corp. Weekly Chart December 04, 2009

Nevada Copper Corp Trend Analysis.
Chart is courtesy of marketclub.
Nevada Copper owns 100% of the Pumpkin Hollow Copper Development Property in the Walker Lane mineralized belt of Western Nevada.

Pumpkin Hollow is an advanced development stage copper property, which contains Measured and Indicated Resources totalling 5.6 Billion pounds of Copper plus additional Inferred Resources of 3.7 Billion pounds of Copper (all using a 0.2% copper cutoff grade). This 9.3 Billion pound copper resource, 1.45 million ounces of gold, 55 million ounces of silver and 130 million tons of contained iron in 361 million tons at an average grade of 36% iron at a 20% iron cutoff was estimated effective June, 2009.

Contained within the larger resource is a high grade component of 77 million tons grading 1.7% copper at a 1.0% cutoff containing 2.6 Billion pounds of Copper. Ongoing drilling has yet to define the limits of this world class Copper-Iron-Gold-Silver deposit.

Robust Preliminary Economic Assessment (PEA) results were announced on March, 17, 2008, demonstrating that at a US$1.75 long term copper price, the Pumpkin Hollow Copper Project has a US$784 Million NPV at an 8% discount, with an IRR of 24%. At a US$2.50 copper price the project's discounted NPV at an 8% discount increases to US$1.1 Billion. The NI43-101 compliant technical report highlighted several additional areas that have the potential to further improve the already solid economic base. The detailed PEA can be accessed at http://www.nevadacopper.com/i/pdf/PEA-March2008.pdf

As a result of the significant increases in the recently completed resource estimate, Nevada Copper intends to update its PEA to incorporate these results and the positive results of its internal optimization studies.
http://www.nevadacopper.com/s/Home.asp

Nevada copper reports robust results

Nevada copper reports robust results

Nevada Copper Corporation announced that it has completed a National Instrument 43-101 Preliminary Economic Assessment for its 100% owned Pumpkin Hollow IOGC Property in Nevada which incorporates a High Grade Case.

In March, 2008 Nevada Copper completed a PEA describing an integrated 60,000 tons per day open pit underground operation resulting in USD 552 million at USD 1.75 per lb copper price to USD 1.7 billion at USD 3.00 per lb copper price at an 8% discount rate. Capital costs under the integrated open pit and underground operation were estimated at USD 780 million including contingencies and working capital.

The High Grade Case incorporates the recent increase to Pumpkin Hollow's resource as a result of drilling completed in 2008 and 2009 and optimization studies focused on developing a production profile that would result in largely reduced capital costs and a project which would be resilient to lower copper prices while still allowing for the transition to the large integrated open pit underground operation.

Capital costs have been reduced to approximately 25% of that required for a larger 60,000 tonnes per day integrated open pit-underground operation. More importantly, the High Grade Case does not compromise the integrity of the large open pit project envisioned in the 2008 PEA and will allow for transition to the large integrated open pit underground operation on a staged basis.

According to National Instrument 43-101 guidelines, a PEA is considered preliminary in nature and includes the use of inferred mineral resources which are considered too speculative geologically to apply economic considerations that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not demonstrated economic viability. Thus, there is no certainty that the production profile concluded in the PEA will be realized. Actual results may vary.

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1 comments:

79Atoms said...: No change in my outlook.
Only matter of time before this rocket takes off.

As always, in the unlikely case if things do get ugly, for those with a lot of nerve there is the support at 2.50,...but...don't ever fall in love with a stock. Set yourself a predetermined margin you are willing to loose and stick to it.

2.80 would set off my alarms.; Thursday, December 31, 2009 12:11:00 PM