North Deposit - Nevada Copper Corp

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Nevada Copper Corp.
Nevada Copper Corp.
Developing the Pumpkin Hollow Copper Deposit
- Nevada’s Next Major Copper Mine TSX: NCU
1
April, 2008
Cautionary Note
Certain statements contained in this presentation constitute forward-looking statements. Such
forward-looking statements involve a number of known and unknown risks, uncertainties and
other factors which may cause the actual results, performance of achievements of the
Corporation to be materially different from actual future results and achievements expressed or
implied by such forward-looking statements. Investors are cautioned not to place undue reliance
on these forward-looking statements.
This presentation describes “Measured”, “Indicated” and/or “Inferred” Resources. U.S. investors
are advised that while such terms are recognized and required by Canadian regulations, the
Securities and Exchange Commission does not recognize them. “Inferred Resources” have a
great amount of uncertainty as to their existence and great uncertainty as to their economic
feasibility. It cannot be assumed that all or any part of any inferred resource will ever be
upgraded to a higher category. Exploration is an inherently risky proposition and investors are
advised that most exploration projects fail to identify economic resources.
The Corporation has at present not confirmed the economic viability of any resources at the
project. The company plans drilling programs and studies with the objective of confirmation of
Copper and Iron deposits and ultimately completing a feasibility study to demonstrate the
economics of the resources. Any historical estimates are not mineral reserves and do not have
demonstrated economic viability and should not be relied upon.
2
Corporate Highlights
Stock Symbol:…..............................TSX: NCU
Shares Outstanding:.……..….........37.0 Million
Fully Diluted:………………………...45.8 Million*
*Options - 3.6 million @ $1.25 / Warrants – 5.2 million @ $1.80
Cash, March 15, 2008:….…..……...C$ 3.0 Million
Cash on exercise:.……………........C$13.8 Million
Market Cap/Cu Resource lb:……...C$0.011
3
Investment Highlights
4

100% Owned Pumpkin Hollow, Located in Nevada.

NI 43-101 Compliant Resource (Nov.’07):
7.9 Billion Pounds of Copper, 1.3 Million ounces of Gold,
57 million ounces of Silver and 144 million tons of Iron.
► Open Mineralization in Several Directions.

Significant Potential to Expand Resource.

Discovery Potential on Increased Land Position

Premier Permitting Site with Excellent Infrastructure.

Positive Preliminary Economic Assessment - March 2008.

Advanced Stage - Commence Feasibility Study in 2008.

Creation of a Mid-Tier, Well Managed Copper Company.
Nevada Copper Team
Giulio T. Bonifacio - President, CEO & Director
Joe Kircher - Vice President, COO & Director
Joe Chan - Vice President, CFO
Greg French - Project Manager
World Class Technical Team:
5

Tetra Tech – Resource Estimate, Open Pit & Preliminary Assessment

The Mines Group – Permitting & Environmental

Golder Associates – Geotechnical

Water Management – Hydrology

RDI – Metallurgy and Processing

Hazen Research – Metallurgical

Dynatec – Underground Mining

Harma Associates – Iron Processing and Marketing
Location Map
6
Land Position
Yerington
Pumpkin Hollow
Property – 21 sq. Miles
7
District Summary

1.9 Billion pounds of copper produced at 0.54% Cu grade;
Anaconda Copper Mine - 1953 to 1978.

12 Billion pounds of copper found in other porphyry deposits
in the district.

7.9 Billion pounds of copper at Pumpkin Hollow; a high grade
large skarn associated with the cluster of porphyry deposits.
NCU holds a commanding land position in
an exciting Copper District that hosts in excess of
20 Billion pounds of Copper.
8
District Geology
95
Tertiary volcanics
McArthur Deposit
29 Mt @0.2% Cu
(162 million lbs. Cu
Cretaceous quartz monzonite
Bear Deposit
500 Mt @0.4% Cu
(4.4 billion lbs. Cu)
Ann Mason Deposit
810 Mt @???
(7.1 billion lbs. Cu)
Jurassic Yerrington Batholith
Triassic-Jurassic Sedimentary
& metavolcanic rocks
Yerington Pit
Produced 165 Mt
@0.54% Cu
(1.9 billion lbs. Cu)
95
Blue Jay Mine
Yerrington
Ludwig
District
Produced
~700,000
tons
3-5% Cu
Mason
District
Pumpkin Copper
780 Mt @0.50% Cu
(7.9) Billion lbs. Cu
N
2000 meters
4000 feet
9
Project History
- 1960 to 2001
 Discovered 1960 by US Steel
Corporation.
Core
Sheds
 Next 30 Years - Anaconda,
Cyprus, Conoco, delineates
large copper and iron resource.
 590,000 feet (180,000 meters) of
drilling, metallurgy, mining,
economic studies completed.
 US$50 Million in estimated
historical expenditures.
10
Core
Sheds
1970’s Drill
Rigs
Core Processing Facility
11
Nevada Copper History
 Acquired Project in 2005, Copper Price $1.40 per lb.
 Aug.’2006 Resource Estimate - 6.1 Billion Pounds of Copper.
 Nevada Copper goes public on TSX Venture - August 2006.
 Nevada Copper lists on Toronto Stock Exchange - August 2007.
 2007 - Infill & Step-Out Drilling: (62,000 feet/19,000 Meters).
 Baseline Data Collection for Feasibility & Permitting Started
in Q1 2007.
 Nov.’2007 Updated Resource - 7.9 Billion Pounds of Copper.
 Mar.’2008 – Positive Preliminary Assessment/Scoping.
12
The Copper Deposits
Outline of Patented Claims
(Note: Property extends off the map in all directions)
EAST ZONE
NORTH ZONE
High Grade
Underground
Copper Deposits
JK-34 ZONE
Copper - Iron
Open Pit Deposits
SOUTH ZONE
E-2 ZONE
SOUTHEAST
ZONE
0ft
13
2,000ft
3,000ft
2007 Drilling Highlights
14

Increased drill program from 12,000 Meters to 19,000 Meters
based on extremely successful in-fill and step out program.

East Deposit - Converted Inferred to Measured & Indicated,
increased grade and added metal.

E2 - Converted Inferred to Measured & Indicated, increased
grade.

North Deposit - Converted Inferred to Measured & Indicated,
converted waste to ore, added strike and metal.

South Deposit - Confirmed shallow high grade Cu/Au deposit.
2006 vs. 2007 Cu Resource
NI 43-101 Compliant Estimate
2006 Measured Indicated & Inferred
Copper Cutoff
Tons (000)
Cu (%)
Cu(lbs/000)
0.20 %
766,084
0.40
6,147,300
0.30 %
415,989
0.53
4,437,093
0.75 %
42,056
1.43
1,198,833
2007 Measured Indicated & Inferred
Copper Cutoff
Tons (000)
Cu (%)
Cu (lbs/000)
0.20 %
780,899
0.50
7,874,513
0.30 %
458,547
0.69
6,324,491
0.75 %
115,668
1.37
3,168,487
HIGHLIGHTS:
15

32% Increase in Copper Grade

44% Increase in Measured and Indicated Copper Resource

28% Overall Increase in Contained Copper
2007 Resource Detail
NI 43-101 Compliant Estimate (0.2% Copper Cutoff)
2006
Category
Tons (000)
Cu (%)
Cu(lbs/000)
Meas. & Ind.
312,063
0.44
2,751,700
Inferred
454,021
0.37
3,395,600
6.1 Billion Pounds of Contained Copper plus 75 million tons of Iron Magnetite.
2007
Category
Tons (000)
Cu (%)
Cu(lbs/000)
Gold (Oz.)
Silver (Oz.)
Meas. & Ind.
342,735
0.58
3,967,688
635,000
26,643,000
Inferred
438,164
0.45
3,906,825
647,000
30,680,000
HIGHLIGHTS:

7.9 Billion Pounds of Contained Copper

Added 1.3 Million Oz. of Gold and 57 million Oz. of Silver

92% Increase in Iron to 144 Million Tons
Prepared in Nov.’07 by Tetra Tech MM Inc., an Industry Leading International Engineering Firm.
16
East and E2 Underground
NI 43-101 Compliant Estimate
2007 Measured & Indicated
Cu Cutoff Tons (000) Cu (%)
Cu (lbs/000)
Au Oz
Ag Oz
0.75 %
41,592
1.46
1,214,000
167,000
5,106,000
1.00 %
26,108
1.81
947,000
128,000
3,562,000
1.40 %
13,555
2.41
653,000
83,000
2,125,000
2007 Inferred
Cu Cutoff Tons (000) Cu (%)
Cu(lbs/000)
Au Oz
Ag Oz
0.75 %
25,333
1.25
634,000
90,000
2,926,000
1.00 %
13,671
1.59
434,000
59,000
1,765,000
1.40 %
5,354
2.25
240,933
31,000
814,000
2006 vs. 2007 : At 0.75% cutoff M&I increased 303% to 1.2 billion pounds
from 301 million pounds. In all categories increased 168% to 1.85 billion
pounds from 690 million pounds.
17
North & South Open Pit
NI 43-101 Compliant Estimate
2007 Measured & Indicated
Cu Cutoff Tons (000) Cu (%)
Cu (lbs/000)
Au Oz
Ag Oz
0.20 %
161,964
0.51
1,666,216
278,000
12,211,000
0.30 %
104,228
0.68
1,430,626
224,000
8,953,000
0.40 %
75,357
0.82
1,231,800
186,000
7,065,000
2007 Inferred
Cu Cutoff Tons (000) Cu (%)
18
Cu(lbs/000)
Au Oz
Ag Oz
0.20 %
230,838
0.44
2,022,429
336,000
16,148,000
0.30%
116,338
0.63
1,460,355
230,000
11,892,000
0.40%
73,333
0.80
1,170,554
180,000
6,812,000
2007 Iron Resource
NI 43-101 Compliant Estimate
2007
Measured & Indicated
Iron Cutoff
10 %
20 %
30 %
Tons (000)
191,008
119,755
76,235
Iron (%)
27.8
35.9
42.2
Tons (000)
53,154
42,956
32,152
Cu %
0.28
0.31
0.31
Inferred Resources
Iron Cutoff
10 %
20 %
30 %
Tons (000)
465,337
135,144
74,474
Iron (%)
19.6
34.1
42.1
Tons (000)
91,363
46,097
31,349
Cu %
0.23
0.37
0.44
Iron resources amenable to open-pit mining methods in the North and
South Deposits. Metallurgical test-work has demonstrated amenability
of generating marketable pellet feed.
1996: $ 28 per metric ton iron pellet feed.
2007: > $ 100 per metric ton iron pellet feed.
19
Resource - 3D
20
Open Targets/ Step-out
56,000 N
East Deposit
North Deposit
North down Dip
Northeast
Shallow
KM-12
West East
Extensions
E91-1
South
Up-dip
52,000 N
JK-34
South Deposit
N
North
border
E-2
Deposit
21
58,000 E
Southeast
Deposit
Sec 11
54,000 E
50,000 E
48,000 N
Southwest
extension
Open
Mineral
Directions
1500 FEET
Exploration Targets
56,000 N
Northwest
Magnetic
Anomaly
East
Ground
Magnetic
North Deposit
East Deposit
FG-20
Between
North & South
52,000 N
JK-34
Open
Mineral
Trends &
Anomalies
N
South Deposit
Southeast
Strike & dip
E-2
Deposit
E-2 -Section 11
22
Sec 11
58,000 E
Southeast
Deposit
54,000 E
50,000 E
48,000 N
1500 FEET
2008 DRILL PROGRAM
STARTED IN JANUARY
23
Premier Development Site
Pumpkin Hollow Site
24
Ideal Development Site
Yerington - Full
Services
Paved Road
98% of the Resource on Private Ground
Mining Friendly Nevada
25
Power line
Site Layout -
Conceptual
Concentrator
Dewatered Tailings
Overburden Repository
26
Mine Profile
 Integrated open pit and underground
operation.
 Throughput, 60,000/tpd, 88% open pit,
12% underground.
 Single copper concentrator,
conventional floatation circuit.
 Producing an Average of 95,000 tons
of copper per year.
 Gold, silver and iron by- products
 Mine life 20-30 years.
27
Operating Characteristics
Open Pit
 52,500 tons per day
 7,500 tons per day
 Truck and Shovel Mining
 Bulk Long-hole Mining
 Avg. 2.9:1 waste/ore Ratio
 Shaft Access
 432,000,000 tons Ore
 28,000,000 tons Ore
 Cu equiv. Grade 0.62%
 Cu equiv. Grade 1.82%
 $0.99/ton Mining Cost*
 $17/ton Mining Cost*
 $4.96/ton Milling Cost
 $4.96/ton Milling Cost
 24 Year Mine Life
 14 Year Mine Life
* Includes dewatering cost
28
Underground
Open Pit Excavations
South
Deposit
North
Deposit
29
Underground – East & E-2
30
Preliminary Economics
Financial highlights:
(In Millions of US Dollars and Imperial Units)
Base Case
Variable
@ $1.75
$2.50
NPV @ 4 %
$ 1,381
NPV @ 8 %
$
IRR (Incl. contingency)
Capital (Incl. contingency
& working capital)
CU Price ($/lb)
Payback (years)
(1)
(2)
(3)
31
Alternative Case
$3.00
Variable
@ $1.75
$2.50
$3.00
$ 2,143
$ 3,396
$ 863
$ 1,623
$ 2,876
765
$ 1,086
$ 1,918
$ 531
$
851
$ 1,684
23.8%
20.5%
29.3%
22.9%
19.7%
29.0%
$ 780
$ 780
$ 780
$ 780
$ 780
$ 780
3.1
4.8
3.6
3.1
4.8
3.6
Recoveries: 89% Cu; 70% Au; 68% Ag; 81% Fe
Base Case: Operating Cost of $1.02/lb, net of by-product credits
Alternative Case – No Iron: Operating Cost of $ 1.29/lb, net of by-product credits
Underground Only
 7,500 ton per day mine.
 Capital: $270 Million / Incl. Working Capital & Contingency
 14 Year Mine Life / Payback 4.5 Years
 19% IRR & $220 Million NPV @8% / $415 Million NPV @ $3.00 Cu.
 Significant upside in Grade and tonnage to be tested in 2008.
32
Value Drivers/ Upside
 Shallow Open Pit Deposit Extensions in the North, South and
Southeast.
 Deposit Extensions in the high grade East and E2 extending mine
life and improving Year 1-5 grade.
 Iron Deposit Expansion and Detailed Evaluation.
 Grade Increase’s in all Deposits with additional Infill and Step-out
Drilling.
 Gold, Silver and Moly Additions from Re-Assay Program.
 Green Fields “DISCOVERY” Potential Is Huge.
33
Preliminary Project Timeline
2008
1st Q
Description
In-Fill, Step Out and
Exploration Drilling
Re-Assay Program
Updated Resource &
Feasibility
Permitting
Exploration PreDevelopment
Surface Construction
Production
34
2nd Q
3rd Q
2009
4th Q
1st Q
2nd Q
3rd Q
2010
4th Q
2011
2012
Market Catalysts
35

2008 Results Oriented Aggressive Drilling Program - In-Fill, Step
Out & Exploration.

Assay Program - Continue Historic Drill Hole assaying program
for copper, gold, silver & Moly (Completed 5,300 Meters/
85 Drill Holes).

Steady News Flow - 2008 Drilling Results/ Other.

Commence Bankable Feasibility Study in 2008.

Updated Resource - Late 2008.
Peer Group Comparables
Market Value per pound of Copper in situ (Cents per lb)
4.5
5
3.9
3.9
3.4
3.3
4
3
1.1
2
1
0
Norsemont Augusta
Northern
Peru
Peru
Copper
Chariot
Nevada
Copper
Norsemont ***
Augusta Resources*
Northern Peru **
Peru Copper**
Chariot *
4.5
3.9
3.9
3.4
3.3
Average
Nevada Copper ***
3.8
1.1
* Feasibility / ** Acquired / *** Scoping/PEA
Market Comparables @ March 28, 2008
Peer

36
Group Average: 3.8 cents per pound Copper
Industry Average: Plus 5 cents per pound Copper
Deposit Geology Section
The following pages present cross sections,
photos and 3 D Models of the:
East, E-2 and North Deposits.
37
Underground Deposits
Outline of Patented Claims
(Note: Property extends off the map in all directions)
EAST ZONE
NORTH ZONE
High Grade
Underground
Copper Deposits
JK-34 ZONE
Copper - Iron
Open Pit Deposits
SOUTH ZONE
E-2 ZONE
SOUTHEAST
ZONE
0ft
38
2,000ft
3,000ft
East Deposit View
East Deposit
E-2 Deposit
South Deposit
Looking East
39
East & E2 Resource – 3D
40
East Deposit – Plan View
OPEN
EAST
NC07-21
54600N
DEPOSIT
NC07-5
NC07-8
0ft
54200N
2000ft
Patented property outline only
N
EAST DEPOSIT
OPEN
53400N
400 FEET
NC07-2
OPEN
Nov.’07 43-101 Resource:
50.8 Million tons @
1.38% Copper
@ 0.75% copper cutoff
NC07-14
Nevada Copper
drill holes
Historic drill holes
41
East Section - 54600N
SECTION 54600N
EAST
EAST
E2
SECTION 49600N
42
East Section -
54600N
NC07-5 NC07-21
Section shortened for
visual efficiency
5’
2.58% Cu
40.5’
4.08% Cu
9’
4.74% Cu
HJ-11
39’
2.59% Cu
6’
2.38% Cu
57’
2.33% Cu
6’
2.89% Cu
Mesozoic
J-11
57.5’
3.34% Cu
10.5’
5.0% Cu
DEPOSIT
4600’
3800’
0ft
20’
2.10% Cu
3600’
2’
2.03% Cu
15’
2.24% Cu
5’
2.03% Cu
3000’
87’
2.76% Cu
Conglomerate
19’
Tertiary volcanics
2.37% Cu
3.5’
Limestone, Marble
56’
Hornfels
2.3% Cu
4.34% Cu
Magnetite skarn
8’
Cal-silicate skarn
Intrusive
4.59% Cu
+ 1% Cu
KM-12
+ 2% Cu
JK-12
Trace of drill hole
400 FEET
19’
Intersected length of
2.37% Cu
Mineralization in feet, %Cu
Note: Assays <1% not plotted
43
EAST
4800’
2400’
2000ft
Patented Property Outline only
NC07 – 5
40.5 feet @ 4.08% Cu
10.5 feet @ 5.00% Cu
57.5 feet @ 3.34% Cu
NC07 – 21
20 feet @ 2.10% Cu
87 feet @ 2.76% Cu
56 feet @ 4.34% Cu
East Section – 53400N
SECTION 53400N
SECTION 49600N
44
East Section -
53400N
55400E
57800E
NC07-14
4800’
4600’
4000’
3600’
Mesozoic
Conglomerate
Tertiary volcanics
Limestone, Marble
Hornfels
Magnetite skarn
Cal-silicate skarn
Intrusive
+ 1% Cu
+ 2% Cu
19’
2.37% Cu
116.2’
3.08% Cu
C-8
36’
5.04% Cu
C-6
Trace of drill hole
Intersected length of
Mineralization in feet, %Cu
Note: Assays <1% not plotted
C-12
2400’
M-20
KM-20
3000’
28’
3.89% Cu
111’
3.31% Cu
JK-19
45
44’
2.75% Cu
400 FEET
1800’
E-2 Section –
49600N
5800 feet
East
E2
46
E2
SECTION 49600N
E-2 Section - 49600N
56000E
58000E
NC07-23
4800’
C-11
4600’
3800’
E-2
63’
2.29% Cu
KM-45
M-44
KM-44
Mesozoic
Tertiary volcanics
Limestone, Marble
Hornfels
Magnetite skarn
Cal-silicate skarn
Intrusive
+ 1% Cu
+ 2% Cu
115’
4.45% Cu
>0.3% Cu
19’
2.37% Cu
135’
2.66% Cu3200’
C-13
145’
2.44% Cu
2000’
Trace of drill hole
Intersected length of
Mineralization in feet, %Cu
400 FEET
Note: Assays <1% not plotted
47
2600’
1800’
Open Pit Deposits
Outline of Patented Claims
(Note: Property extends off the map in all directions)
EAST ZONE
NORTH ZONE
High Grade
Underground
Copper Deposits
JK-34 ZONE
Copper - Iron
Open Pit Deposits
SOUTH ZONE
E-2 ZONE
SOUTHEAST
ZONE
0ft
48
2,000ft
3,000ft
North Deposit View
North Deposit
Office
Looking North
49
North Deposit – 3D
50
North Section – 47700E
2000 feet
North
SECTION 47700E
51
North Section North
47700E
54500N
54000N
53500N
53000N
52500N
4800’
99-7 USS-79
99-6
NC07-9
USS-70
99-4
USS-46
Mesozoic
Tertiary volcanics
Limestone, Marble
Hornfels
Magnetite skarn
Cal-silicate skarn
Intrusive
+ 1% Cu
+ 2% Cu
>0.3% Cu
19’
2.37% Cu
Trace of drill hole
Intersected length of
Mineralization in feet, %Cu
24.9’
3.38% Cu
99-2
USS-76
USS-95
12.5’
2.53% Cu
99-3
42’
2.49% Cu
109.9’ USS-41
3.22% Cu
52
3400’
115.5’
2.51% Cu
2800’
400 FEET
Note: Assays <1% not plotted
4000’
North Section -
47900E
54500N
54500N
54000N
53500N
53000N
52500N
North
4800’
USS-56 USS-96 USS-34
USS-46
NC07-1
USS-43
USS-88
99-1
Mesozoic
Conglomerate
Tertiary volcanics
Limestone, Marble
Hornfels
Magnetite skarn
Cal-silicate skarn
Intrusive
+ 1% Cu
+ 2% Cu
19’
2.37% Cu
342’
@ 2.03%
4000’
USS-70
USS-76
USS-88
USS-48
3400’
Trace of drill hole
Intersected length of
Mineralization in feet, %Cu
2800’
400 FEET
Note: Assays <1% not plotted
53
Nevada Copper Corp.
Nevada Copper Corp.
Developing the Pumpkin Hollow Copper Deposit
- Nevada’s Next Major Copper Mine TSX: NCU
54
January, 2008
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