Nevada Copper (NCU.TO) has been drilling at the East underground copper deposit on its Pumpkin Hollow copper project in Nevada, USA. The company drilled a total of almost 3,000 meters in 11 holes, of which one hole was a shaft geotechnical hole. Nevada Copper’s primary reason for this drill program was to confirm the confidence in the mineralized zones underground that would be mined first.
And it does look like the drill program has indeed hit the ‘sweet spots’ considering the drill bit intersected several higher grade copper zones per drill holes with for instance 24.8 meters (true thickness) of 2.79% copper and 120 meters at 1.21% copper (again true thickness) for a rock value of respectively $141/t and $61/t (excluding the gold and silver credits which would add another 3% and 9% based on the copper-equivalent grade).
Despite the very weak copper price, Nevada Copper is getting everything turn-key ready at Pumpkin Hollow and whilst it won’t be easy to secure funding for this fully-permitted copper project given the current state of the markets, we still believe Nevada Copper will have a lot of options on the table when/if the copper price increases to $2.75/lbs again. It’s a pity the permitting process took so much longer than anticipated because if Nevada Copper would have been able to conclude the permitting process just one year earlier, the situation would have been completely different.
Disclosure: The author holds a long position in Nevada Copper. Nevada Copper is a sponsor of the website. Please see our disclaimer for current positions.