Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (January 2022)
44 slides from Western Copper And Gold's investor presentation, January 2022
Slide 1: January 2022 Corporate Presentation
JANUARY 2022 – CORPORATE PRESENTATION TSX : WRN I NYSE AMERICAN : WRN
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Western Copper and Gold Corporation and its subsidiaries (collectively, the “Company”). This document should be read in conjunction with al
Slide 3: Clean and Tightly-Held Ownership Structure
CLEAN AND TIGHTLY-HELD OWNERSHIP STRUCTURE TRADING Toronto Stock Exchange, NYSE American WRN CASH POSITION Cash & Short Term Investments C$ 51.8 million September 30, 2021 Short/Long Term Debt $Nil SHARE STRUCTURE January 21, 2022 Share Price C$ 1.99 Market Cap C$ 301 M Issued and outstanding (basic
Slide 4: WRN and the Casino Deposit
WRN AND THE CASINO DEPOSIT ALASKA YUKON CLEAR INVESTMENT THESIS ✓ Strongest copper market in the past decade CASINO PROJECT ✓ Project is one of the largest copper-gold projects in Canada Whitehorse ✓ Located in the Yukon – new emerging mining district Skagway ✓ New PEA shows robust economics and lon
Slide 5: Rio Tinto Strategic Investment
RIO TINTO STRATEGIC INVESTMENT Rio’s investment provides opportunity for Rio to gain a better understanding of Casino, through an agreed upon Scope of Work. SCOPE OF WORK ▪ Defined and performed in partnership with Rio, focusing on technical, regulatory, and community aspects of the project. TERMS*
Slide 6: Rio Tinto Work Program Progress
RIO TINTO WORK PROGRAM PROGRESS Executing on program developed in partnership with Rio Tinto Work Completed ▪ Metallurgical and geotechnical drilling ▪ Resource confirmation drilling ▪ Soil sampling program east and south of the main Casino Deposit ▪ Exploration: ~1,600 m in 6 holes on new targets ▪
Slide 7: The World Needs a Lot More Copper
THE WORLD NEEDS A LOT MORE COPPER COPPER – KEY TO LIMITING CLIMATE CHANGE 12 million tonnes • To keep global warming under 1.5 degrees, annual copper supply needs to copper equal to grow by >12 Mt in the next 10 years – growth only 7 Mt in the past 20 years over 150 new • Limited copper projects und
Slide 8: Casino Copper-Gold – An Attractive Copper or Gold Mine
CASINO COPPER-GOLD – AN ATTRACTIVE COPPER OR GOLD MINE CONTAINED METAL VALUE DISTRIBUTION IN SILVER THE M&I MILL RESOURCE 4% MOLY 18% GOLD GOLD 14.5 Million oz M+I Resources 38% + 6.6 Million oz Inferred Resources COPPER COPPER 7.6 Billion lbs M+I Resources + 3.3 Billion lbs of Inferred Resources 41
Slide 9: 5th Largest Undeveloped Copper-Gold Project Controlled by a Junior
Copper Equivalent (B lbs) 10 20 30 40 50 60 80 70 0 Source: RBC Pebble 150 97 KSM Resolution La Granja NuevaUnion Norte Abierto El Pachon TSX : WRN I NYSE AMERICAN : WRN Cascabel Los Azules Taca Taca MARA El Arco Los Volcanes Casino West Wall Snowfield Vizcachitas Ann Mason Michiquillay NorthMet Alt
Slide 10: Top Largest Junior Controlled Gold Projects
TOP 10 LARGEST JUNIOR CONTROLLED GOLD PROJECTS Pebble CASINO KSM Donlin Livengood Rosia Montana Metates Cascabel Tampakan Freida River Los Helados MANY OF THESE PROJECTS: • are not economic at long term prices • are located in unfavorable jurisdictions Source: Public records • have environmental and
Slide 11: The Casino Project
& western COPPER AND GOLD THE CASINO PROJECT
Slide 12: Casino Deposit
CASINO DEPOSIT Heap Leach Resource: 217 Million Tonnes @ 0.27 g/t AuEq (M&I) 31 Million Tonnes @ 0.18 g/t AuEq (Inferred) Core Zone CuEq Phase I Pit Phase II Pit 1.0 0.8 0.6 0.4 0.3 0.2 0.1 Mill Resource: 2.17 Billion Tonnes @ 0.36% CuEq (M&I) 1.43 Billion Tonnes @ 0.24% CuEq (Inferred) Notes: Looki
Slide 13: Rio Tinto Work Program – Confirmation Drilling
RIO TINTO WORK PROGRAM – CONFIRMATION DRILLING Results improved upon historical drilling outlining the importance of the Deposit Core at Casino 289.6 m 1.01% CuEq from 36.6 m 65.8 m 2.53% CuEq from 10.6 m CuEq 1.0 0.8 0.6 0.4 0.3 0.2 0.1 Note: See News Release dated November 29, 2021. TSX : WRN I NY
Slide 14: Good Grade
GOOD GRADE GRADES IN LINE WITH PEERS: Casino Mill Yr 1-4 (173 Mt) Casino Mill Phase I (1.1 Bt) CASINO Casino Mill Phase I + II (2.1 Bt) Operating Mine Average Copper Mountain - CMMC (466 Mt) Gibraltar - TKO (511 Mt) Highland Valley - TCK (329 Mt) PEERS Developing Mine Average Mt. Milligan - CG (191
Slide 15: Western Copper and Gold Casino PEA Summary
WESTERN COPPER AND GOLD CASINO PEA SUMMARY Phase I (Year 0-25) Phase II Metal Prices Cu: US$3.35/lb Au: US$1,600/oz (Year 26-47) NPV After-tax (8%) IRR After-tax Mine Life $2.33 Billion 19.5% +22 Years Strip Ratio Payback LOM Cash Flow After-tax LOM 0.38:1 3 Years +$3 Billion Note: Based on Casino 2
Slide 16: Early Production Significant Contributor to Project Economics
EARLY PRODUCTION SIGNIFICANT CONTRIBUTOR TO PROJECT ECONOMICS Years 1-4 Life of Mine Average annual cash flow (pre-tax) (C$ M) 1,081 645 Average annual cash flow (after-tax) (C$ M) 965 487 Net Smelter Return ($/t ore milled) 41.92 28.14 Operating Cost ($/t ore milled) 9.84 9.84 Average Annual Metal
Slide 17: Excellent Cash Costs
EXCELLENT CASH COSTS COPPER COSTS Base Case Cash Cost Net of By-Product C$/lb) (1.13) Co-Product Cash Cost (Cu) (C$/lb) 1.66 GOLD COSTS Base Case Cash Cost Net of By-Product (C$/oz) (1,353) Co-Product Cash Cost (Au) (C$/oz) 794 Source: Casino 2021 PEA. See “Notes” in Appendix. Base Case metal prices
Slide 18: Preliminary Economic Assessment – June 2021
PRELIMINARY ECONOMIC ASSESSMENT – JUNE 2021 PROJECTED CAPITAL COSTS PROCESS PLANT & INFRASTRUCTURE $ Millions CDN Project Directs (including freight) $1,777 Project Indirects $390 Contingency $412 Subtotal Process Plant & Infrastructure $2,579 MINE COSTS Mine Equipment $409 Mine Preproduction $211 S
Slide 19: Economic Throughout the Commodity Cycle
ECONOMIC THROUGHOUT THE COMMODITY CYCLE Copper Price ($US) $2.50 $3.00 $3.35 $4.00 $4.50 $5.00 $5.50 NPV 8% (C$M) $654 $1,209 $1,597 $2,309 $2,857 $3,405 $3,952 $1,200 IRR % 11.6% 14.4% 16.1% 19.1% 21.2% 23.3% 25.2% Payback (yrs) 4.8 3.9 3.5 3.0 2.8 2.6 2.4 NPV 8% (C$M) $1,028 $1,581 $1,965 $2,677 $
Slide 20: Yukon – A Storied and Modern Record of Mining
YUKON – A STORIED AND MODERN RECORD OF MINING TIER 1 JURISDICTION ✓ Mining territory in Canada STRONG GOVERNMENT SUPPORT ✓ Funding for marketing and access road STRAIGHTFORWARD PERMITTING ✓ Single assessment agency ✓ Several initiatives underway to streamline processes ACTIVE MINING DISTRICT ✓ 3 min
Slide 21: ESG Commitment
ESG COMMITMENT SOCIAL ENVIRONMENTAL GOVERNANCE Committed to health and safety Committed to exceeding best Committed to high ethical and committed to the protection of practices in protecting the standards and building long term cultural values environment value ✓ Ongoing Engagement with Local ✓ Acce
Slide 22: Working with the Community
WORKING WITH THE COMMUNITY Tailings Facility Redesign - Reduced Risk, Reduced Environmental Impact and Improved Safety ▪ Redesign incorporates the outcomes of the BATT study – a collaboration with First Nations, YESAB and Yukon government ▪ Substantial reduction in the quantity of free-standing wate
Slide 23: Casino Access Road Funding Secured
CASINO ACCESS ROAD FUNDING SECURED ▪ $130 million funding committed from Governments for the Casino Access Road ▪ Construction bid on initial portion of road awarded – expect construction early 2022 ▪ Agreements with FN’s on key aspects of remaining road reached Canadian Prime Minister Justin Trudea
Slide 24: Key Asset in an Emerging New Gold District
KEY ASSET IN AN EMERGING NEW GOLD DISTRICT ✓ Major miners in area – Rio Tinto, Newmont, Agnico-Eagle, Kinross, and others ✓ ~ 30 million ounces of gold in district* ✓ Significant exploration upside White Gold ✓ Government commitment to fund access to area ✓ 2 Projects in permitting ✓ Community and F
Slide 25: Enterprise Value/Project NPV Benchmarking
ENTERPRISE VALUE/PROJECT NPV (STUDY) BENCHMARKING ▪ WRN trades at 0.12x NPV, a significant discount to its peers ▪ Undervalued against peers, trading at low end of peer valuation 2.33x 1.26x 1.14x Feasibility Pre-Feasibility PEA 0.54x 0.47x WRN 0.32x 0.29x 0.21x 0.20x 0.15x 0.12x 0.10x 0.09x 0.08x 0
Slide 26: Enterprise Value/Copper Equivalent Resource Benchmarking
ENTERPRISE VALUE/COPPER EQUIVALENT RESOURCE BENCHMARKING (US¢/lb CuEq) ▪ WRN is undervalued with greater growth opportunity compared to its peers ¢20.7 ¢18.7 ¢17.2 Feasibility ¢5.8 Pre-Feasibility ¢4.7 ¢4.1 PEA ¢2.3 WRN ¢2.1 ¢2.0 ¢1.7 ¢1.4 ¢1.1 ¢0.8 ¢0.7 ¢0.4 ¢0.4 ¢0.1 (North Island) Sandfire Res. A
Slide 27: Investment Highlights and Path Forward
INVESTMENT HIGHLIGHTS AND PATH FORWARD CASINO PROJECT ALREADY TICKS MANY OF THE BOXES: ✓ Significant copper and gold project ✓ Yukon – an emerging mining district ✓ Clear path to unlock value STEADY PROGRESS: ✓ 2018: Tailings alternatives study completed ✓ 2019: Infill drilling campaign completed ✓
Slide 28: Analyst Coverage
ANALYST COVERAGE CORMARK SECURITIES ROTH CAPITAL PARTNERS H.C. WAINWRIGHT & CO. Stefan Ioannou Tel: (949) 720-7108 Heiko F. Ihle, CFA Tel: (416) 943-4222 Tel: (212) 356 - 0500 TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 28
Slide 29: Appendix
& western COPPER AND GOLD APPENDIX
Slide 30: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Ken Williamson, B.A.Sc., Paul West-Sells, PhD Ken Engquist, B.Sc. Varun Prasad, CPA, CGA Cameron Brown, P.Eng Shena Shaw MBA, P.Eng President & CEO COO CFO VP Engineering VP, Environmental & Director & Interim Community Affairs Chairman Former investm
Slide 31: Board of Directors
BOARD OF DIRECTORS Ken WIlliamson, Former investment banker. Mr. Williamson has served on the boards of Eicon Technology Corporation, Glamis B.A.Sc., MBA, P.Eng Gold Ltd., BioteQ Environmental Technologies Inc., Uranium One Inc., BlackRock Ventures Inc., Quadra FNX Director & Interim Chair Mining Lt
Slide 32: TSX/V Junior Controlled Copper Projects
TSX/V JUNIOR CONTROLLED COPPER PROJECTS Arctic + Bornite Pebble CASINO Schaft Creek KSM Hushamu + Red Dog Copperwood Van Dyke + White Pine Cascabel Antakori Cotabambas + Antilla Los Helados Josemaria Vizcachitas Altar + Rio Grande Filo del Sol PFS/FS Cortadera + Productora MANY OF THESE PROJECTS: PE
Slide 33: Second Phase Development
SECOND PHASE DEVELOPMENT Phase I Phase I + II Development Development Sustaining Capital $719 million $1,808 million Total LOM Capital $3.97 billion $5.01 billion LOM pre-tax free cash flow $13.0 billion $17.2 billion LOM after-tax free cash flow $9.0 billion $12.0 billion Total mineralized material
Slide 34: Operating Cost
OPERATING COST ($/tonne) MILLING Milling $5.72 OPERATION Mining $3.66 General & Administrative $0.45 Total $9.84 ($/tonne) HEAP LEACH Heap Leach Operation $1.30 OPERATION ADR/SART $4.67 Total $5.98 Note: Based on Casino 2021 PEA. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Ca
Slide 35: Core Zone
CORE ZONE Casino Core Zone ▪ 800 m X 500 m zone in the center of the deposit ▪ Primarily breccia geology ▪ Grades significantly higher in this zone as compared to the overall resource grade Mineral Resource - Mill Material by NSR Cutoff (C$) NSR Cog Class Copper Gold Moly Silver CuEq ($/t) Mt (%) (g
Slide 36: ANA and Casino B
ANA AND CASINO B Note: See “Notes” in Appendix TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 36
Slide 37: Deeper Porphyry Targets
DEEPER PORPHYRY TARGETS Current deposit outline • Additional geophysical targets identified at depth Chargeability @ 67 ms MT @ 66 mS Source: Witherly, Ken, “New Riches from Old Data; a Re-evaluation of Legacy Data from the Casino Deposit, Yukon, AME Roundup, January 25, 2018 TSX : WRN I NYSE AMERIC
Slide 38: Casino Infrastructure
CASINO INFRASTRUCTURE POWER • Power to be supplied by 3 gas turbine generators for a combined installed capacity of > 200 MW • Fuel – LNG trucked from Ft. Nelson • MOU signed with Ferus Natural Gas Fuels Inc. to supply LNG • City of Whitehorse currently powered by LNG PORT OF SKAGWAY • Draft MOU dev
Slide 39: Excellent Concentrate Quality
EXCELLENT CONCENTRATE QUALITY Copper Concentrate Molybdenum Concentrate Element Avg Value Unit Element Avg Value Unit Copper 28 % Molybdenum 57.4 % Gold 25 g/t Copper 0.39 % Silver 120 g/t Rhenium 133.5 g/t Molybdenum 0.05 % Iron 0.8 % Iron 26 % Sulphur 37.9 % Sulphur 36 % Arsenic 1659 g/t Arsenic 2
Slide 40: 2020 Resource
2020 RESOURCE Mill Resource ($5.70/t NSR cut-off) Tonnes Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class M (%) (g/t) (%) (g/t) (%) (M lb) (M oz) (M lb) (M oz) Measured 145.3 0.31 0.40 0.025 2.1 0.74 986 1.9 80.6 9.8 Indicated 2,028.0 0.14 0.17 0.016 1.4 0.33 6,448 10.9 731.0 90.4 M+I 2,17
Slide 41: 2020 Resource
2020 RESOURCE Heap Leach Resource ($5.46/t NSR cut-off) Tonnes Copper Gold Silver AuEq Copper Gold Silver Class M (%) (g/t) (g/t) (g/t) (M lb) (M oz) (M oz) Measured 37.2 0.05 0.45 2.8 0.48 39.3 0.5 3.3 Indicated 180.2 0.03 0.21 1.7 0.23 127.2 1.2 10.0 M+I 217.4 0.03 0.25 1.9 0.27 166.5 1.8 13.3 Inf
Slide 42: Notes
NOTES “Casino PEA”: • Technical report entitled “Casino Project, Form 43-101F1 Technical Report Preliminary Economic Assessment, Yukon, Canada" dated June 22, 2021, a copy of which is available on the Company's website at www.westerncopperandgold.com. • Prepared by Prepared by: Daniel Roth, PE, P.En
Slide 43: Notes
NOTES Other technical information in this presentation: • Technical information regarding the Casino Project contained in this presentation is based on the Casino 2021 PEA prepared by or under the supervision of the Qualified Persons noted previously. • Copper equivalent calculations in this present
Slide 44: www.westerncopperandgold.com
WWW.WESTERNCOPPERANDGOLD.COM INFO@WESTERNCOPPERANDGOLD.COM 604 684 9497
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