Nevada Copper expects full-scale production in Q4

Nevada Copper (TSX: NCU) expects to reach full production capacity at its Pumpkin Hollow underground mine in the fourth quarter of 2020, the company stated in an operations update on Friday.

The underground mine, located in Yerington, Nevada, began production in December 2019, becoming the first copper project to reach production stage in the US over the past decade.

However, mining activities were suspended in early April due to the covid-19 related travel and workplace restrictions imposed by the state government. The operational delay was anticipated to last at least six weeks.

Nevada Copper is continuing to make preparations for restart of production. The main shaft equipping is advancing according to plan, while the materials handling system is complete and in position pending finalization of related civil works.

Phased re-mobilization of workforce is currently underway and expected to be completed this month, with the mill restart expected for mid-August.

Initial production during September and October will come from both existing stockpile and development ore, after which full hoisting will begin from the main shaft in Q4.

The Pumpkin Hollow operation has the capacity to produce 65 million pounds of copper-equivalent per year at all-in sustaining costs (AISC) of $1.86/lb, with possibilities for further expansion.