Strong Pumpkin Hollow drill results for Nevada Copper

Vancouver – The latest drill results out of Nevada Copper‘s (NCU-T) Pumpkin Hollow project in Nevada look set to boost resources in a new estimate due out before mid-year.

The company drilled 73 holes totalling 26,600 metres in 2008 at Pumpkin Hollow, which sits about 20 km southeast of the small town of Yerington in Lyon County. The property hosts three open-pittable iron oxide copper gold (IOCG) deposits; the two large ones are called the North and South zone and the small one is the Southeast zone. In addition, Pumpkin Hollow has three higher grade underground copper deposits, named the Northwest, East, and E-2 zones.

Nevada Copper’s latest results are the last set of holes from the North zone. Infill hole 46 returned a long mineralized intercept: 225.3 metres averaging 0.62% copper from 184 metres depth. Hole 46 was a follow-up to hole 20, which was collared 30 metres to the south along the southern boundary of the North deposit and returned 1.03% copper over 235.6 metres. And hole 41, drilled 60 metres east of hole 20, cut a total of 192 metres grading better than 0.3% copper, including 62.8 metres of 0.65% copper and 59.4 metres of 0.67% copper.

Hole 42, another North zone infill hole but this one near the eastern boundary, intersected several zones of mineralization. The largest measured 11.7 metres true width and carried 2.65% copper, from 215 metres depth. In the same area step-out hole 35 returned 50.8 metres of 0.45% copper from 235 metres depth. Another eastern step out, hole 12, hit 30.8 metres of 0.59% copper.

And two central infill holes also returned strong results. Hole 22 cut 80 metres of 1.15% copper from 255 metres depth and hole 24 intersected five mineralized zones totalled 121 metres, the largest of which carried 0.4% copper over 41 metres.

Over at the South zone, hole 52 was drilled to follow up on shallow, high grade intercepts from the 2007 program in the south-west corner of the zone. The drill hit 48.5 metres averaging 1.4% copper from 95 metres depth.

And several infill holes returned significant intercepts. Hole 58 cut 68.6 metres grading 0.5% copper from 129 metres downhole; hole 59 returned 1.07% copper over 18.3 metres. Near the centre of the South zone, hole 25 hit 89.6 metres grading 1.03% copper from 175 metres depth.

In the Southeast deposit, infill hole 44 cut 69.8 metres grading 0.56% copper. Hole 51 returned 12.2 metres grading 0.35% copper, indicating the western boundary of copper mineralization.

In late 2007 Nevada Copper announced a resource for Pumpkin Hollow’s North and South zones, totalling 342.7 million measured and indicated tonnes grading 0.58% copper as well as 438.1 million inferred tonnes grading 0.45% copper. The deposits also carry low silver and gold grades.

Nevada Copper plans to calculate a new resource estimate once the final results from its 2008 campaign are available. Results from the East and E-2 zones are still outstanding. The company will then use the updated resource to optimize the preliminary economic assessment (PEA) completed a year ago. The company also plans to initiate a feasibility study before the end of the year.

The PEA evaluated an integrated underground and open-pit operation with a standard milling and flotation plant to produce high-grade copper concentrates. The operation would produce 95,000 tons of copper per over for more than 20 years. Capital costs were estimated at US$780 million.

Nevada Copper shares gained 3¢ on the latest drill results to close at 28.5¢. The company has a 52-week trading range of 16.5¢ to $2.83 and has 41 million shares outstanding.