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Nevada Copper hits with 19 mineralised holes

Nevada Copper Corporation has announced results from 19 holes in and near the open pit project which is located 4km from the Company’s underground mine, both situated at its 100% owned Pumpkin Hollow copper project.

All of the 19 holes have hit copper mineralisation, with 9 holes hitting high-grade mineralisation, including hole NC18-22, located outside of the current pit limits, which intercepted 6.9 meters true thickness averaging 4.12% copper between 175.7m and 187.0m. In total, 26 holes were drilled during the 2018 Open Pit Project expansion work program and the results indicate a new high-grade zone, new lenses of mineralisation and the continued success of the waste-to-ore conversion program. None of these holes was included in the recent preliminary economic assessment (“PEA”) study (see news release dated September 10, 2018).

These 26 holes will be included in the upcoming pre-feasibility study anticipated Q1, 2019 and have the potential to enhance the size and economics of the Open Pit Project.

A total of 26 Holes over 9,800 meters have been drilled this year, including 19 New Mineralised Drill Holes: All 26 holes encountered multiple zones of mineralisation. Results include: Hole NC18-06 intersected 9.2 meters true thickness averaging 1.09% copper; Hole NC18-14 intersected 13.0 meters true thickness averaging 2.42% copper; and Hole NC18-23 intersected 29.4 meters true thickness averaging 0.71% copper, including 5.7 meters true thickness averaging 2.60% copper.

The program intersected strong mineralisation in the Northern Extension target area outside and within the walls of the Open Pit Project mine plan that have been classified as waste rock. It also targeted areas classified as inferred category ore with the goal of upgrading to the indicated category. Converting the waste rock may reduce stripping costs and extend the ore body.

Three of the holes encountered high-grade mineralisation outside of the walls of the existing Open Pit Project plan. Drill hole NC18-19 intersected 9.9 meters true thickness averaging 3.48% copper. NC18-09 also targeted down dip expansion and intersected 28.0 meters true thickness averaging 1.97% copper. The mineralisation remains open. The Company intends to further delineate this new zone of high-grade mineralisation.

As outlined in the recent PEA study, the Open Pit Project has the potential for robust economics and the option to expand in stages. Following the dissemination of the PEA technical report, the results of the 26 mineralised drill holes will be included in the resource model of the PFS study, expected Q1, 2019 with the potential to improve the grade and size of the resource estimate.

Pumpkin Hollow Development Options - Pre-feasibility Study 5,000tons/day Underground Project; Feasibility Study for a 70,000 tons/day Open Pit/Underground Project”, with an effective date of 15th September 2017 and an amended report date of 3rd January 2018.

Matt Gili, President and CEO, of Nevada Copper, commented, “We are very encouraged by this extensive set of drilling results, which includes the discovery of a new high-grade zone and new lenses of mineralisation. We are also pleased to see the continued, strong progression of our waste-to-ore conversion program. Overall, the success of this program has the potential to improve the size and the economics of the open pit development at Pumpkin Hollow and we look forward to the PFS that is planned for Q1, 2019.”

Located adjacent to and in the North Pit and covering an area of approximately 26 ha, the Northern Extension Zone was not previously drilled due to the now-completed land transfer process. As a result, the Northern Extension Zone was classified as waste rock or inferred material in the Existing Technical Report. Subsequent fieldwork and analysis have shown the Northern Extension to be a highly-prospective area and the 2018 drilling included a waste-to-ore conversion program which has successfully intersected significant mineralisation in this high priority target area.

A new drilling program is expected in H1, 2019 as well as exploration to locate the source of the mineralisation at Pumpkin Hollow, In addition, a new PFS, encompassing the new drill holes and further expanding on the PEA results, is expected Q1, 2019. The underground mine is expected to commence production in Q4, 2019.