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Press release from Marketwire

Nevada Copper Announces 1.1 Billion Pound Increase in Measured and Indicated Resource

Friday, September 07, 2012

Nevada Copper Announces 1.1 Billion Pound Increase in Measured and Indicated Resource07:00 EDT Friday, September 07, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2012) -Nevada Copper Corp. (TSX:NCU) ("Nevada Copper" or the "Company") is very pleased to announce it has completed an updated National Instrument ("NI") 43-101 mineral resource estimate for its 100% owned Pumpkin Hollow Property in Nevada. The updated mineral resource estimate includes the results of approximately 44,000 meters of resource delineation drilling completed since October, 2010. This program focused on expanding the Measured and Indicated ("M&I") copper resource primarily in the North and South open-pittable deposits (the "Western Deposits").The following are highlights of the new mineral resource estimate, compared to the previously published January 2011 resource estimate. The new resource estimate is based on drill results from October 2010 to August 2012. The details of tonnage and grades are contained in the resource tables below.26% Increase of the M&I copper resources for the Western Deposits - increasing by 1.1 billion pounds to 5.4 billion pounds (0.15% cutoff); 30% Increase of the M&I copper resource in the North Deposit - increasing by 820 million pounds to 3.5 billion pounds (0.15% cutoff); 20% Increase of M&I copper resources in the South Deposit - increasing by 315 million pounds to 1.9 billion pounds (0.15% cutoff); 1.1 billion pound increase of Total M&I copper resource to 6.8 billion pounds for the combined Western and Eastern Deposits from 5.7 billion pounds (0.15% cutoff - Western Deposits; and 0.75% cutoff - Eastern Deposits); Total Inferred copper resource of 1.7 billion pounds for combined Western and Eastern Deposits (0.15% cutoff - Western Deposits and 0.75% cutoff - Eastern Deposits); 16% Increase of the M&I Iron Resource for the Western Deposits increasing by 17.8 million tons to 129 million tons of contained iron (20% cutoff); and, Significant Increase in the Inferred Iron Resource for the Western Deposits increasing by 19.9 million tons to 27.6 million tons of contained iron (20% cutoff). Since October 2010 the Eastern Deposits received limited drilling mainly along the edges of the deposits representing only 6% of the total drilling completed. As a result, the Eastern Deposits mineral resources have not been updated and are reported below as previously published. On completion of the 2,200 foot, 24 foot diameter production-sized shaft currently underway, Nevada Copper anticipates commencement of an underground drilling program that will focus on several open areas of the East Deposit and the JK-34 target area. In considering the cutoff grades in the tables below, it should be noted that the cutoff grades for the Eastern deposits and the Western Deposits are different due to differing mining methods and costs. The cutoff grade ranges in the resource tables below are specific to the individual deposits. In preparing economic analyses, appropriate cut-off grades are determined for use for the mining plans, either underground or open pit, developed as part of any feasibility study. The cut-off grades used in resource tables below are indicative of those used in Nevada Copper's National Instrument 43-101 Technical Report-Feasibility Study filed on SEDAR (www.sedar.com) in February 2012.The Pumpkin Hollow mineral resource summary, by deposit area, is as follows:WESTERN DEPOSITS - MEASURED AND INDICATED RESOURCES - AS AT SEPTEMBER 2012CategoryCutoff Grade (%Cu)Tons (000)Grade (%Cu)Contained Copper (000 lbs)Gold Grade optGold (000 ozs)Silver Grade optSilver (000 ozs)Cu Equiv. %Measured0.20186,0370.481,793,2500.0023180.05410,1240.531Measured0.15237,9150.411,954,8740.0023680.04911,6200.460Indicated0.20348,3890.433,023,1090.0014780.05218,1410.461Indicated0.15494,1410.353,493,3510.0016130.04522,4140.379M&I Total0.20534,4260.454,816,3590.0017960.05328,2650.481M&I Total0.15732,0560.375,448,2250.0019810.04634,0340.400WESTERN DEPOSITS - INFERRED RESOURCES - AS AT SEPTEMBER 2012CategoryCutoff Grade (%Cu)Tons (000)Grade (%Cu)Contained Copper (000 lbs)Gold Grade optGold (000 ozs)Silver Grade optSilver (000 ozs)Cu Equiv. %Inferred0.20138,1490.401,094,7750.0011500.0496,7750.430Inferred0.15225,0730.311,388,1070.0012190.419,2960.416Copper equivalency is based on $3.00 per pound for copper, $1400 per ounce gold and $20 per ounce silver and metallurgical recoveries of 92%, 78% and 57.5% for copper, gold and silver respectively.EASTERN DEPOSITS - MEASURED AND INDICATED RESOURCES - AS AT JANUARY 17, 2011CategoryCutoff Grade (%Cu)Tons (000)Grade (%Cu)Contained Copper (000 lbs)Gold Grade optGold (000 ozs)Silver Grade optSilver (000 ozs)Cu Equiv. %Measured1.009,2061.81333,3240.0111040.242,2052.080Measured0.7512,4971.56390,3720.011280.2162,6991.805Indicated1.0024,3381.72835,5890.012470.2455,9711.971Indicated0.7538,0921.41,069,4520.0083210.2138,1181.605M&I Total1.0033,5441.741,168,9130.013510.2448,1761.991M&I Total0.7550,5891.451,459,8240.0094490.21310,8171.675EASTERN DEPOSITS - INFERRED RESOURCES - AS AT JANUARY 17, 2011CategoryCutoff Grade (%Cu)Tons (000)Grade (%Cu)Contained Copper (000 lbs)Gold Grade optGold(000 ozs)Silver Grade optSilver(000 ozs)Cu Equiv. %Inferred1.004,9261.45143,3130.002100.1014981.511Inferred0.7512,0981.11267,5330.002240.0657921.164Copper equivalency is based on $3.00 per pound for copper, $1400 per ounce gold and $20 per ounce silver and metallurgical recoveries of 92%, 78% and 57.5% for copper, gold and silver respectively.Tonnage, grades and totals in the tables above may not total due to rounding. Iron Resources Nevada Copper has also updated the standalone estimate of the iron resource at Pumpkin Hollow. Nevada Copper is continuing to assess the commercial viability of the large iron by-product found within, and contiguous to, the copper-gold-silver deposits at Pumpkin Hollow.The following tables summarize only those iron resources amenable to open-pit mining methods in the Western deposits:IRON RESOURCES WESTERN DEPOSITS - AS AT SEPEMBER 2012CategoryIron % CutoffTons (000s)Iron Grade %Tons Iron (000s)Measured20243,00732.879,759Measured30133,89739.452,736Indicated20157,21931.449,140Indicated3071,18839.428,041M&I Total20400,22632.2128,899M&I Total30205,08539.480,777Inferred2093,12729.627,562Inferred3035,408238.813,721* Tonnage, grades and totals may not total due to rounding. Drill-Hole Database The updated resource is based on a database that now consists of over 740 drill holes containing in excess of 335,200 meters (1,100,000 feet) of drilling and over 89,000 assays. The 2011 and 2012 program consisted of 94 resource holes totaling 47,700 meters (156,500 feet) and 10 hydrological, and geotechnical holes that totaled 3,900 meters (12,800 feet). Gregory French, CPG, M.Sc., VP, Senior Project Manager, commented, "The drilling program since late 2010 has proved to be extremely successful in expanding the M&I resources in the North and South Deposits which focused primarily on the North Deposit and increased by over 800 million pounds or 32%. We are extremely pleased that these results have exceeded our initial expectations while mineralization still remains open in both the North and South Deposits. The addition of more than 1.1 billion pounds of copper to the previous 4.3 billion pounds of copper in the M&I category is expected to have a very positive impact on already robust project economics. The combination of converting waste and inferred material within the current feasibility open pit designs to M&I and the new mineralization discovered in the North Deposit is expected to yield a larger and deeper ultimate North Pit. Based on limited pit design work by Tetra Tech, we believe that this will significantly increase mineable reserves within the designed pits, subject to the results of an updated feasibility study encompassing the Western deposits. This study is targeted for release in January 2013. Additionally, the updated resource estimate further supports our expectation that the North and South pits will merge. We anticipate that merged pits should produce both operational and project capital synergies, whilst extending the mine life of the North Deposit by several years." Qualified Person The completed updated mineral resource estimate was prepared by the mineral resource and mining division of Tetra Tech Inc. an industry leading international engineering firm by, or under the direction of, Dr. Rex Bryan, SME Registered Member, an independent Qualified Person as set forth by Canadian National Instrument 43-101. The Pumpkin Hollow drilling program is under the supervision of Gregory French, CPG, M.Sc., Vice President, Senior Project Manager of Nevada Copper Corp. Mr. French is a non-independent Qualified Person as defined in Canadian National Instrument 43-101 and is responsible for the preparation of the technical information in this news release. A National Instrument 43-101 technical report, including the updated mineral resource estimate, will be filed on SEDAR within the next 45 days and will also be available on the company's website. NEVADA COPPER CORP.Giulio T. Bonifacio, President & CEO Cautionary Language We seek safe harbour.FOR FURTHER INFORMATION PLEASE CONTACT: Eugene ToffoloNevada Copper Corp.VP, Investor Relations & Communications604-683-8266 or Toll free: 1-877-648-8266etoffolo@nevadacopper.comORRobert McKnight, P.Eng.Nevada Copper Corp.Executive Vice President604-683-1309bmcknight@nevadacopper.comwww.nevadacopper.com