Nevada Copper has decided to move ahead with the construction of the Pumpkin Hollow underground copper project in Nevada, US.
The Pumpkin Hollow high-grade skarn/iron oxide copper gold (IOCG) deposit is located within a porphyry copper district in Nevada.
The Pumpkin Hollow project involves development of 5,000 tons per day (tpd) underground mine as well as a 70,000tpd open pit and underground Integrated Project.
Pre-construction activities at the underground project has already commenced in May 2018, with the first concentrate production expected in the fourth quarter of 2019.
Nevada Copper president and CEO Matt Gili said: “We are very excited to commence full-scale construction of the Pumpkin Hollow underground project, which will include the processing plant and completion of the underground mine.
“Delivery of the underground project is the first key step in our strategy of capital-efficient, phased growth from our base in Nevada.
“I would like to thank all our shareholders and stakeholders, including our financing partners Triple Flag and Red Kite, for their support as we proceed with construction, targeting first copper production in 2019.”
For the project development, the company has signed contracts with Cementation USA and CIMIC Group’s Sedgman USA.
The scope of the contract awarded to Cementation involves shaft sinking and underground mine development work at Pumpkin Hollow.
Earlier, Cementation undertook pre-works program to prepare the existing shaft and hoist infrastructure.
Under a $118m contract, Sedgman will provide engineering, procurement and construction (EPC) services for the surface plant and infrastructure at the Pumpkin Hollow project.
Last December, Nevada Copper signed $378m worth of business recapitalisation and project financing deals for the Pumpkin Hollow project with Triple Flag Mining Finance Bermuda, Pala Investments, Red Kite Mine Finance, Concord Resources and other institutional equity investors.
For the first five years, the mine is expected to produce 285 million pounds of copper, 45,000Oz of gold as well as 1.1 million ounce (MOz) of silver per year.