Main Shaft Material Handling System Has Commenced

YERINGTON, NV - Nevada Copper Corp. Chief Executive Officer, said, “We are pleased that the Main Shaft steelwork is complete and that work is progressing on the materials handling system. In the meantime, we continue to hoist development ore via the East North Vent Shaft and look forward to our continued ramp-up to 5,000 tpd. We are also pleased that our lateral development rates are on schedule with development ore grades continuing to increase to targeted levels. Mill ramp up continues positively with extended periods of operation approaching nameplate throughput and recovery.”

The Company’s underground lateral development rates continue to be on schedule, with ore grades encountered in ongoing development reconciling well to resource model grades, and hoisted development ore grades improving as expected with stope development. Average stope development grades in October reached over 2% copper equivalent grades.

During October the steelwork in the Main Shaft was completed. Work is ongoing in the Main Shaft to complete the remaining loading pocket. By the middle of November the Company plans to use the Main Shaft to transfer materials, supplies and people, freeing the East North Vent Shaft to be used exclusively for development ore and waste movement, with a resultant expected increase in ore hoisting rates.

Staged commissioning of the Main Shaft material handling system has commenced. The Company is testing the communication system and interaction of these sections to ensure ramp-up can be accelerated once the underground conveyor is installed later in the quarter.

Processing plant performance continued to improve with recoveries increasing 10% in October from September. Mill throughput rates are continuing to increase as mill optimization is ongoing, reaching throughput rates approaching design. Campaign milling is being utilized to optimize ore stockpile management heading into the commissioning of the Main Shaft materials handling system.

Further to the updates regarding localized geotechnical changes arising from recent definition drilling in the Upper East South zone, the Company has continued its review of the costs associated with initially smaller stopes during the ramp-up period. Additional geotechnical review and ongoing definition drilling completed in October continues to support the Company’s mine plan which shows production quickly transitioning to predominately larger stopes over Q1 2021 and thereafter, supporting sustained mining of larger stopes as previously planned. While the move to initially smaller stopes in the Upper East South zone will further de-risk the project and does not affect the life of mine resource, the change will increase costs in the short term.

In light of the additional costs associated with this change in mine plan during the ramp-up period, Management has concluded that the Company will require additional funding over the next four months as it completes the ramp-up and transitions out of the immediate mining area back into originally planned larger stopes which are typical of the broader mine.