Nord Resources Corporation (NRDS.PK) announced that the company has recognized an increase of 109% in production reserves at the company’s Johnson Camp mine site. This increase can be attributed to an increase in copper prices that are utilized in mine modeling. In fact, reserve estimates were previously based at $.90 copper, whereas the current price of copper is $1.50.
The company anticipates reserve estimates totaling 73.4 million tons of ore at an average total copper grade of 0.335%. Based on the current copper price of $1.50 per pound and the stripping ratio of 0.66 to 1, this represents a significant increase in production figures.
Furthermore, Bikerman Engineering and Technology Associates have stated that the Johnson Camp Mine have a copper price of $2.45 per pound over the life of the mine. Bikerman also expect that this mine can generate positive discounted cash flows over a 16 year mine life at 8%, 15% and 20% discount rates and produce 25 million pounds of copper each year for 16 years.
President and CEO, John Perry commented, “We are pleased with the significant increase in proven and probable reserves. These results, along with the results of our current drilling program underway at Johnson Camp, will be evaluated to determine the viability of potential future production increases.”
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