Nevada Copper Reports Operations Improvement And Completion Of Materials Handling System

YERINGTON, NV - Mike Ciricillo, Chief Executive Officer of Nevada Copper, said, “We are pleased with our operations progress in Q3 following recommencement of concentrate production in August. The Processing Plant performance continues to deliver on-spec concentrate with increased throughput rates, concentrate grade, recovery, and volume. By the end of Q4 we look forward to continuing our operations improvements and completing the materials handling system, a key to accelerating ramp-up to commercial production in Q1 2021. The Company expects to restart advancing optimizations for its open pit project (the “Open Pit Project”) following the current focus on ramp-up of the Underground Project. The optimizations are expected to include further extension and in-fill drilling as a follow-up to the last Open Pit Project drilling program, which identified significant additional mineralization and indicated the ore body extends beyond the original pit boundary and remains open in multiple directions, as well as value engineering options and trade-offs with the aim of further enhancing project economics. In addition, we continue to evaluate its extensive mineral landholdings at and around Pumpkin Hollow, including drilling and/or trenching, where appropriate, and to look for opportunities to increase its landholdings at the appropriate time. We continue to review recent and historical aero-magnetic survey data in conjunction with surface exploration to identify prospective targets. Further to this strategy, additional ground was staked along the eastern boundary of the Tedeboy target area.”

During Q3 2020, the Company made notable progress in its previously announced accelerated development plan, re-mobilized its workforce and re-started the processing plant at its underground project (the “Underground Project”) on August 20, 2020. Milestones for the quarter include: Mill Restart - On August 20, 2020, the Company restarted its processing plant at the Underground Project following the temporary suspension of copper production due to impacts of the COVID-19 pandemic. During the quarter, the processing plant continued to improve on its performance achieving single day throughput milestones of 4,440 tons (representing approximately 90% of design throughput). Processing plant performance continues to improve with recoveries increasing 10% in October when compared with September.

Concentrate Delivery - During the quarter, the processing plant processed 125,796 tons of blended material consisting of stockpiled low-grade mineralized material and development ore. Concentrate production in Q3 totaled 1,050 dry metric tons (“dmt”) at 24.7% copper. The Company shipped a combination of inventoried material from April and current quarter production totaling 1,179 dmt at a concentrate grade of 22.4%. October concentrate shipments increased 166% from September and the Company continued to deliver on-spec copper concentrates to its offtaker, with the Company shipping 1,461 dmt at a concentrate grade of 25.5% copper during the month.

Main Production Shaft Equipping - The Company has completed equipping of the Main Production Shaft. Work is ongoing to complete the remaining loading pocket. By the third week 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.

Lateral Development - Lateral development rates of the revised mine plan and hoist rates via the East North Vent Shaft are ahead of targets. Ore grades encountered in ongoing development continue to reconcile well to resource model grades, and hoisted development ore grades have increased in line with the commencement of stope development.

Mining - During the third quarter, the Company hoisted an average of a 1,000 tons of material per day from the East North Vent Shaft, which was approximately 30% better than planned hoisting rates. The Company has initiated mining activities in stope ore with stope development grades in October reaching over 2% copper equivalent.

Materials Handling - During the quarter, the surface materials handling infrastructure has been completed and moved into the permanent location and staged commissioning has commenced. The Company is testing the communication system and interactions of these sections to ensure ramp-up can be accelerated once the underground conveyor is installed later in Q4 2020.

Geotechnical Update - 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 Underground Project and does not affect the life of mine resource, the change has increased 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 process.

Mine Plan - Mine planning to develop detailed production mining layouts and stope sequencing has commenced following receipt of the updated geological model and revised geotechnical design parameters developed from underground infill drilling and mapping of the development.