New Nevada copper mine could become significant production hub
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The company is a force to be reckoned with following a US$380 million recapitalisation at the end of last year led by Pala Investments. Top drawer investors include JP Morgan, BlackRock, Capital Group, CIBC and Red Kite.
The action centres on the underground Pumpkin Hollow copper project near Reno, Nevada, in the Yerington District.
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Matthews said: "Global economic growth is combining with new demand from electric vehicles, grid upgrades, charging infrastructure, energy storage and green energy infrastructure to produce strong copper fundamentals.
"With global mine supply declining and demand increasing, this is the right project at the right time."
Pumpkin Hollow was said to contain more than five billion pounds of copper in resource, and the Yerington District held about 33 billion pounds of copper-in-resource. As first-mover in the region, Nevada was aiming to be the "partner of choice" in the district.
Matthews said: "Our vision is to be the next mid-tier copper producer based in North America. We anticipate an increase in copper prices, based on analysis of industry supply and demand. We are well positioned for the upturn in the market."
Tom Albanese, formerly CEO of Rio Tinto, is lead independent director of Nevada. According to the company's presentation, the underground mine has mineral reserves of 23.9 million tonnes at 1.74% copper-equivalent. In years 1-5 annual production was flagged at an average 60Mlbs copper, 9,0000oz gold, and 173,000oz silver.
"There is significant expansion potential," said Matthews.
An openpit option was under review with a decision due next year.