Nevada Copper Corp (TSX:NCU, OTC:NEVDF) said mobilization activities for the underground lateral development contract at its Pumpkin Hollow copper project, which has been awarded to US-based Small Mine Development LLC, began on May 10, 2023.
In a statement, Randy Buffington, president & CEO of Nevada Copper, expressed his satisfaction with the contract, commenting: "We are very pleased to award this contract to SMD, who have a strong reputation for safe and productive development in Nevada hard rock mines. Partnering with SMD is an effective way to ensure we have the ore stopes available to achieve and maintain our planned steady state production rate of approximately 5,000 tons per day."
The key components of the development contract include the construction of 66,000 feet of lateral capital development over a 24-month period, the delivery of fully developed ore stopes in 2023 to restart and maintain milling operations, and a unit rate agreement for development and associated services.
Nevada Copper will manage stope mining as well as ore and waste handling, while SMD will handle underground stope ground support services.
Nevada Copper also provided updates on various debottlenecking projects, which are crucial for a successful ramp-up to a steady state. It said the vent shaft construction is complete, and the surface fans have been commissioned; rehabilitation of ore pass 2 is finished, increasing materials handling flexibility; excavation of the coarse ore bin and the conveyor drift is progressing; and underground electrical infrastructure is in place to support the development contractor's ventilation requirements.
The ongoing construction of a key ventilation raise is expected to be completed by the end of May 2023, the company added.
SMD, a well-respected underground development contractor, has significant experience in underground mining in the United States, particularly in Nevada. With a workforce of approximately 650 employees and a wide range of mining equipment, SMD is well-positioned to support Nevada Copper's underground development goals.
Nevada Copper is the owner of the Pumpkin Hollow copper project in Nevada, which has substantial reserves and resources of copper, gold, and silver. The company's two fully permitted projects include the high-grade underground mine, which is undergoing a restart, and a large-scale permitted open pit project in the pre-feasibility stage.
Contact the author at jon.hopkins@proactiveinvestors.com