An unforeseen change in the mine plan of the Pumpkin Hollow underground pit would require Nevada Copper to raise $30mn by the end of the year.
According to Nevada Copper’s news release on Nov 3, the copper output from Pumpkin Hollow continued to grow in October, with concentrate production up by 140pc over the prior month. However, the report indicated that during Q1 2021, operations would transition to larger-than-estimated stopes in the underground pit, which will lead to costs going up drastically.
Stopes are empty spaces left behind by mining activity and are usually filled with tailings but need to be cemented if the spaces are too large. This cementing cost raises the overhead cost per pound for the concentrate produced.
The company’s investor Pala will continue to provide credit till the end of 2020, but the company is now looking to secure an additional credit line worth $20-30mn, failing which a further ramp-up of activities may be hindered and operations may be idled until funds are available.