Novacopper Inc. (NYSEMKT: NCQ) Bornite Project Update Warms Hearts


Novacopper Inc (NYSEMKT: NCQ) recently updated on the resource estimate for its Bornite Project, which is located in northwest Alaska. The update showed that Indicated Resources at Bornite increased 173%. The company broke down the details of the resource estimate at Bornite as follows:

Based on 0.50% copper cutoff grade, Novacopper Inc. (NYSEMKT: NCQ) said that Bornite is estimated to have 40.5 million tons of what it calls in-pit Indicated Resources. At 1.02% copper, that translates to 913 million pounds of contained copper.

As for the Inferred Resources estimate, the company’s update showed that the Bornite Project contained an estimated 84.1 million tons of in-pit Inferred Resources at 0.50% copper cutoff grade. At 0.95% copper, it translates to 1.8 billion pounds of contained copper.

Based on 1.50% copper cutoff grade, Novacopper Inc. (NYSEMKT: NCQ) said its estimated showed that Bornite contained 57.8 million tons of below-pit Inferred Resources. At 2.89% copper, that reflects contained copper measuring 3.7 billion pounds.

173% spike in Indicated Resources

The company said that Indicated Resources at Bornite Project increased to 913 million pounds from 334 million pounds. That suggests a 173% increase in the quantity of contained metal at Bornite Project.

Nevertheless, Novacopper Inc. (NYSEMKT: NCQ) reported a 4% decrease in the quantity of contained copper in Inferred Resources. The quarter saw a drop to 5.45 billion pounds from 5.97 billion pounds.

What caused the decrease?

Novacopper Inc. (NYSEMKT: NCQ) blamed the decrease in the quantity of copper contained in Inferred Resources on the transfer of in-put Inferred Resources to the category of Indicated Resources.

According to the company’s CEO, Rick Van Nieuwenhuyse, their resources modeling shows that there is enough room to expand the resources next to their current in-pit endowment.


In 1Q2016, Novacopper Inc. (NYSEMKT: NCQ) posted EPS loss of $0.03 as higher expenses hit the bottom-line during the quarter. The company finished 1Q with $14.7 million in cash, which the management termed as sufficient for fund operations for the next two years.


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