I received this from Nevada Copper, who are located beside PMH, thought it might interst...
NEVADA COPPER – INTERSECTS 773 FEET (236 meters) OF 1.03% COPPER in the OPEN PITTABLE NORTH DEPOSIT
September 18, 2008 - Nevada Copper Corp. (TSX: NCU) ("Nevada Copper") is pleased to announce very significant high grade drilling results from the Company’s current 40,000 meter drill program, at its 100% owned Pumpkin Hollow Copper Development Property located in Nevada. Drilling continues to define continuity, thickness and expand the high grade copper mineralization. Specifically, following are the latest drilling results from the North Deposit.
Drill hole NC08-20 has intersected 235.6 meters (773 ft) averaging 1.03 % copper. NC08-20 was drilled as a step out along the southern boundary of the open pittable North Deposit, where drill density was sparse or too shallow. The drill hole confirmed the extension of the shallow copper mineralization and much more. Within this large zone of copper mineralization a new high grade zone of skarn breccia was encountered, 45.7 meters (150 ft) averaging 2.99% copper, 0.232 g/t gold, and 8.3 g/t silver. In addition, NC08 -20 contained a 26 meter (85ft) zone within the copper mineralization averaging 0.018 % molybdenum.
“This exceptionally strong mineralization along the southern boundary of the North Deposit is very significant as it is expected to substantially expand the existing resource and any future open pit configurations. Continued success in expanding the resource southward could result in the merging of the proposed North and South Deposit pits as suggested in the recent Preliminary Economic Assessment , further enhancing already robust project economics.” commented Greg French, Project Manager for Nevada Copper. The Company is currently in the process of offsetting the mineralization which remains open 500 feet to the South and Southwest.
Drill holes NC08-06, 7, 8, and 9 were also drilled in the open pittable North Deposit. The drill holes were designed as infill holes to establish continuity and convert inferred resources to measured and indicated resources. The holes encountered several large zones of open pittable grade mineralization. The three largest zones: NC08-6 intersected 36.6 meters (120 ft) averaging 0.41% copper and 38.4 meters (126 ft) averaging 0.78% copper. Hole NC08-08 intersected 69.5 meters (228 ft) averaging 0.45% copper.
A plan map and cross sections for the deposits are available at www.nevadacopper.com. Drill results announced here represent true thicknesses.
NORTH DEPOSIT – Open Pit: Assays greater than 0.3% Cu
In November of 2007, the Company reported a NI 43-101 compliant copper resource estimate for the North Deposit, at a 0.2% cutoff, of: Measured resource of 10.3MM tons @ 0.81% copper, Indicated resource of 64.5 MM tons at 0.58% copper, and an additional Inferred resource of 158 MM tons @ 0.46 % copper, resulting in a total contained copper resource of 2.4 billion pounds. Over 40,000 meters of drilling is planned in the current 2008 program. To date 55 exploration, hydrologic, and geotechnical holes have been drilled for a total of 20,000 meters. Results from 13 holes have been reported with the balance either being processed or awaiting assays. Further drill results will be released as they become available throughout the remainder of 2008 and prior to the updated resource estimate scheduled for release in early December.
About Nevada Copper Nevada Copper is an emerging copper company, responsibly developing its advanced stage Pumpkin Hollow copper-iron property into Nevada’s next copper mine.
Nevada Copper announced robust economic results from an NI43-101 compliant Preliminary Economic Assessment (“PEA”) in March, 2008. The PEA evaluates an integrated underground and open pit mining operation with a standard milling and floatation plant that will produce high-grade copper concentrates. Annual production will average 95,000 tons of copper per year over a mine life exceeding 20 years. Highlights from the PEA at copper prices from $1.75 to $3.00 per lb. copper are as follows:
- Net present Value $765 Million to $1.9 Billion with an 8% discount rate; - Internal Rate of Return 20.5% to 29.3%; - Operating Cost $0.57/lb of copper, direct and $1.02/lb total, net of by-product credits; - Capital Cost Estimate $665 Million before contingencies and working capital, $780 inclusive; - Project payback from start of construction 3.1 to 4.8 years
The designed mining operation would have a 60,000 ton per day concentrator throughput. Metallurgical recoveries are estimated at 89% for copper, 70% for gold and 68% for silver. In November 2007, Nevada Copper updated its National Instrument 43-101 compliant resource estimate. At a 0.2% copper cutoff grade, the measured and indicated copper resource is 3.96 billion pounds of copper, contained in 343 million tons grading 0.58% copper and 635 thousand ounces of gold and 26.6 million ounces of silver. An inferred copper resource of 3.91 billion pounds of copper is contained in 438 million tons grading 0.45% copper and 647 thousand ounces of gold and 30.1 million ounces of silver. Additionally, there are also potentially open-pittable iron resources of 144 million tons of contained iron in 656 million tons at an average grade of 22 per cent iron at an iron cut-off of 10 per cent.
Within these large resources is a significant high grade copper resource in the East and E2 deposits. Using a 0.75% copper cutoff grade, the measured and indicated resources contain 1.2 billion pounds of copper in 41.6 million tons of material grading 1.46% copper and, in addition, the inferred resource contains 635 million pounds of copper within 25.3 million tons grading 1.25% copper.
Nevada Copper continues its systematic fast-track program to develop its advanced stage Pumpkin Hollow Property with the resource delineation drilling program, metallurgical, geotechnical, hydrological, condemnation data and environmental baseline data for purposes of a Feasibility Study planned to commence by Q4 of 2008.
The Pumpkin Hollow project is under the supervision of Gregory French, CPG #10708, a Qualified Person as defined in Canadian National Instrument 43-101, who is responsible for the preparation of the technical information in this news release. All assaying and whole rock geochemistry is processed at the American Assay Laboratories (AAL) in Reno, Nevada. Samples are delivered from the project core logging facility to AAL by Nevada Copper or AAL personnel. A Quality Assurance and Quality Control Assay Protocol have been implemented whereby blanks and standards are inserted into the assay stream and check samples are sent to Chemex-Reno and Inspectorate-Reno laboratories.
Nevada Copper has 40.6 million shares outstanding and is well financed with no debt. For additional information about Nevada Copper please visit our website at www.nevadacopper.com
PMH Price at posting:
20.0¢ Sentiment: LT Buy Disclosure: Held
