Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (March 2024)
56 slides from Western Copper And Gold's investor presentation, March 2024
Slide 1: Developing Canada's Premier Copper-Gold Mine
TSX WRN NYSE AMERICAN WRN DEVELOPING CANADA’S CANADA’S PREMIER LARGEST COPPER-GOLD MINE CRITICAL MINERALS MINE Corporate Presentation March 2024 - Updated
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information provided in this presentation is not intended to be a comprehensive review of all relating to interpretation of drill results and the geological continuity and grade of mineral matters and developments concerning Western Copper and Gold Corporation and its
Slide 3: Corporate Overview
CORPORATE OVERVIEW TRADING Toronto Stock Exchange, TOP WRN Rio Tinto Canada 9.7% NYSE American SHAREHOLDERS* Feb 15, 2024 CASH Cash & Short-Term Fidelity Management & Research 6.0% POSITION Investments C$38.4 M Co. LLC Sept 30, 2023 + Strategic Investments* (*pro-forma) Mitsubishi Materials 4.8% Sho
Slide 4: WRN & Casino Copper-Gold Project
WRN & CASINO COPPER-GOLD PROJECT CLEAR INVESTMENT THESIS • One of the largest copper-gold projects in Canada • Located in the Yukon – emerging mining district • New Feasibility Study shows robust economics and long life • Strong copper market CONTINUING TO ADD VALUE • Significant resource expansion
Slide 5: Strategic Investments C$33.9M
STRATEGIC INVESTMENTS C$33.9M RIO TINTO INVESTMENT C$25.6M Initial investment May 2021 ~ 9.7%* C$2.3M Top up April 2023 Initial Investment May 2021 OF WESTERN’S OUTSTANDING C$6.0M New rights Nov 2023 COMMON SHARES RIO TINTO KEY RIGHTS* RIO TINTO SCOPE OF WORK Rio has the right to appoint: • Infrastr
Slide 6: Strategic Investments C$21.3M
STRATEGIC INVESTMENTS C$21.3M MITSUBISHI OWNERSHIP ~ 5.0%* OF WESTERN’S OUTSTANDING Initial Investment March 2023 COMMON SHARES MITSUBISHI KEY RIGHTS* MITSUBISHI SCOPE OF WORK Mitsubishi has the right to appoint: Drilling program complete • A member to Casino Copper-Gold Technical and • Advanced M
Slide 7: Copper Key to Limiting Climate Change
THE WORLD NEEDS A LOT MORE COPPER • To keep global warming under 1.5 degrees, annual COPPER copper supply needs to grow by more than 12 Mt in 12 million tonnes the next 10 years – growth only 7 Mt in the past 20 years copper equal to KEY TO LIMITING • There are limited copper projects under developm
Slide 8: Canada's Critical Minerals Strategy
CANADA’S CRITICAL MINERALS STRATEGY Over the LOM, Casino is expected to produce 4.27 billion lbs of POWERING THE GREEN AND copper, which equals: DIGITAL ECONOMY FOR • 5 million fully electric buses or 23 million electric CANADA AND THE WORLD battery vehicles • Solar power systems contain ~11,000 lbs
Slide 9: An Attractive Copper/Gold Mine
CASINO COPPER-GOLD AN ATTRACTIVE COPPER/GOLD MINE Contained 46% 34% Metal Value Distribution COPPER GOLD in the M&I Mill Resource COPPER GOLD 7.6 Billion lbs 14.8 Million oz M+I Resources M+I Resources +3.1 Billion lbs +6.3 Million oz Inferred Resources Inferred Resources 4% 17% SILVER MOLY Source:
Slide 10: 5th Largest Undeveloped Copper-Gold Project Controlled by a Junior
5th LARGEST UNDEVELOPED COPPER-GOLD PROJECT CONTROLLED BY A JUNIOR Alaska 80 Junior controlled copper project BC 150 97 Major controlled copper project 70 WRN’s Casino Copper-Gold project COPPER EQUIVALENT (B LBS) 60 CASINO 50 COPPER-GOLD PROJECT Ecuador Argentina 40 x Yukon 30 Minnesota Nevada Arge
Slide 11: 8th Largest Gold Project Controlled by a Junior
8th LARGEST GOLD PROJECT CONTROLLED BY A JUNIOR 70 107 106 Junior controlled project 60 WRN’s Casino Copper-Gold project CASINO CONTAINED GOLD (M oz) 50 COPPER-GOLD PROJECT 40 30 x 20 10 0 Source: S&P TSX | NYSE AMERICAN | WRN 11
Slide 12: Casino Copper-Gold Project
CASINO COPPER-GOLD PROJECT TSX | NYSE AMERICAN | WRN
Slide 13: Casino Copper-Gold Deposit
CASINO COPPER-GOLD DEPOSIT HEAP LEACH RESERVE 209.6 Million Tonnes @ 0.28 g/t AuEq (P&P) Core Zone CuEq Final Pit Outline 1.0 0.8 0.6 0.4 0.3 0.2 0.1 MILL RESERVE 1.22 Billion Tonnes @ 0.40% CuEq (P&P) Notes: Looking North, North longitudinal section +6958634.51. Based on Casino Copper-Gold 2022 Fea
Slide 14: Core Zone Grades Confirmed by Drilling
CORE ZONE GRADES CONFIRMED BY DRILLING Results confirmed or, in some cases, improved upon historical drilling Casino Copper-Gold Core Zone 800 m X 500 m zone in the centre of the deposit DDH21-07 Primarily breccia geology DDH21-09 289.6 m 1.01% CuEq from 36.6 m 65.8 m 2.53% CuEq Grades significantly
Slide 15: Grades in Line with Peers
CASINO COPPER-GOLD PROJECT GRADES IN LINE WITH PEERS Casino Mill Yr 1-4 (174 Mt) CASINO COPPER-GOLD Casino Mill LOM (1.22 Bt) PROJECT Operating Mine Average Copper Mountain - CMMC (702 Mt) Gibraltar - TKO (706 Mt) Highland Valley - TCK (1.21 Bt) PEERS Developing Mine Average Mt. Milligan - CG (150 M
Slide 16: Feasibility Study Summary
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY SUMMARY $2.33 Billion 18.1% 0.43:1 3 years NPV IRR STRIP RATIO PAYBACK AFTER-TAX (8%) AFTER-TAX LOM 27 years $10 Billion MINE LIFE – Mill operation LOM CASH FLOW AFTER-TAX Metal Prices Cu US$3.60/lb Au US$1,700/oz Ag US$22/oz Mo US$14/lb Note: Based on Ca
Slide 17: Great Economics at Conservative Prices
CASINO COPPER-GOLD PROJECT GREAT ECONOMICS AT CONSERVATIVE PRICES ECONOMICS BASE CASE Copper (US$/lb) 3.60 Gold (US$/oz) 1,700 Molybdenum (US$/lb) 14.00 Silver (US$/oz) 22.00 Foreign Exchange (US$:C$) 0.80 NPV @ 8% (after-tax) (C$ M) 2,334 IRR (100% equity) (after-tax) (%) 18.1 Cash Flow (Y1-Y4) (af
Slide 18: Economic Throughout the Commodity Cycle
CASINO COPPER-GOLD PROJECT ECONOMIC THROUGHOUT THE COMMODITY CYCLE COPPER PRICE ($US) $3.00 $3.50 $3.60 $4.00 $4.50 $5.00 $5.50 NPV 8% (C$M) $866 $1,437 $1,551 $2,006 $2,571 $3,136 $3,701 $1,300 IRR % 12.1% 14.5% 14.9% 16.7% 18.7% 20.7% 22.5% Payback (yrs) 5.0 4.1 4.0 3.6 3.2 2.9 2.7 NPV 8% (C$M) $1
Slide 19: Significant Contribution from Early Years
CASINO COPPER-GOLD PROJECT SIGNIFICANT CONTRIBUTION FROM EARLY YEARS YEARS LIFE OF 1-4 MINE AVERAGE Cash Flow (Pre-tax) (C$ M) 1,033 662 ANNUAL CASH FLOW & Cash Flow (After-tax) (C$ M) 951 517 COSTS Net Smelter Return ($/t ore milled) 43.15 29.08 Operating Cost ($/t ore milled) 11.16 AVERAGE Copper
Slide 20: Feasibility Study Operating Cash Costs
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY OPERATING CASH COSTS BASE CASE BY- Copper Cash Cost PRODUCT (0.80) Net of By-Products (US$/lb) COSTS CO- Copper Cash Cost 1.54 PRODUCT Co-Product (US$/lb) COSTS Gold Cash Cost 799 Co-Product (US$/oz) Note: Based on Casino Copper-Gold 2022 Feasibility Stud
Slide 21: Feasibility Study Capital Costs
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY CAPITAL COSTS PROJECTED CAPITAL COSTS C$ Millions PROCESS PLANT & Project Directs (including freight) $2,116 INFRASTRUCTURE Project Indirects $431 Contingency $369 Subtotal Process Plant $2,916 and Infrastructure MINE COSTS Mine Equipment $433 Mine Prepro
Slide 22: 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 practices in protecting the standards and building of cultural values environment long term value • Ongoing Engagement with Local • Acce
Slide 23: Working with the Community
WORKING WITH THE COMMUNITY • Closure by rock/sand cover limiting Tailings Facility Redesign the need for tailings “pond” Reduced Risk, Reduced • Several other changes to the design Environmental Impact and to reduce construction risk Improved Safety • Redesign incorporates the outcomes of the BATT s
Slide 24: Access Road Funding Secured
CASINO COPPER-GOLD PROJECT ACCESS ROAD FUNDING SECURED Committed from C$130 Million Governments for the Casino Funding Copper-Gold Access Road Construction started early 2022, first 5 km completed late 2023 Agreements reached with First Nations on key aspects of remaining road Canadian Prime Ministe
Slide 25: Developments on Power
DEVELOPMENTS ON POWER Connecting Yukon’s Power Grid Supporting Canada’s future Green .. Economy • Casino Base Case is to use an LNG power plant • Discussions initiated in January with Yukon, BC and Federal governments to connect the BC and Yukon power grids • Included in Yukon Minister Streicker’s m
Slide 26: Infrastructure Port
CASINO COPPER-GOLD PROJECT INFRASTRUCTURE PORT Port of Skagway • Yukon Government signed MOU with Municipality of Skagway securing port space in March 2023 • Term sheet outlining an export cooperation agreement signed in September 2023 • C$21M investment from the Yukon Government for the marine serv
Slide 27: Casino Permitting Timeline
CASINO PERMITTING TIMELINE TASK YEAR 1 YEAR 2 YEAR 3 YEAR 4 YESAB Process Establish Panel Technical Analysis Potential Public Hearings Construction Start Panel Report Decision Land use Preparation Permit for Casino Road Obtain Permits Type A Water Preparation Use License Water Board Process Quartz M
Slide 28: Key Asset in an Emerging New District
KEY ASSET IN AN EMERGING NEW DISTRICT Major miners in area – Rio Tinto, Newmont, Agnico-Eagle, Kinross, and others ~ 30 million ounces of gold in district* Significant exploration upside Government commitment to fund access to area Coffee project recently completed Environmental Assessment Community
Slide 29: Enterprise Value/Project NPV Benchmarking
ENTERPRISE VALUE/PROJECT NPV (STUDY) BENCHMARKING (x) WRN trades at 0.16x NPV, a discount to its peers WESTERN 1.82x COPPER & GOLD 1.41x 0.49x 0.30x 0.21x 0.16x 0.09x 0.09x 0.08x 0.07x 0.03x 0.03x 0.03x 0.02x (Filo del Sol ) Northern Dynasty Trilogy Metals (Cascabel) Highland Copper (North Island) S
Slide 30: 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 WESTERN COPPER & GOLD ¢28.6 ¢12.5 ¢11.8 ¢1.9 ¢1.6 ¢1.4 ¢1.2 ¢0.8 ¢0.4 ¢0.4 ¢0.2 ¢0.2 ¢0.1 ¢0.1 (Filo del Sol ) Northern Dynasty Trilogy Metals (Cascabel) Hi
Slide 31: Path Forward and Investment Highlights
PATH FORWARD AND INVESTMENT HIGHLIGHTS Casino Copper and Gold Significant Yukon – Clear path to Project already ticks copper and an emerging unlock value many of the boxes gold project mining district Continuing partnership Submit Upcoming with strategic investors EA proposal in Catalysts in evaluat
Slide 32: Analyst Coverage
ANALYST COVERAGE CORMARK SECURITIES H.C. WAINWRIGHT & CO. AGENTIS CAPITAL Stefan Ioannou Heiko F. Ihle, CFA Michael Gray, MSc 416 943 4222 212 356 0500 778 952 0978 TSX | NYSE AMERICAN | WRN 32
Slide 33: Appendix
APPENDIX TSX | NYSE AMERICAN | WRN
Slide 34: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Former CEO & President Metallurgical Engineer with of Osisko Gold Royalties significant management with extensive and metallurgical experience in investment experience in increasingly banking and a focus senior roles with BHP, Sandeep Singh, on comple
Slide 35: Board of Directors
BOARD OF DIRECTORS Bill Williams, Economic geologist with expertise in company/project Ph.D., CPG (e)valuations, M&A analyses, risk analysis, project Director & Interim management, and permitting strategies. Mr. Williams Chairman has served on the boards of Detour Gold Corporation, Zinc One Resource
Slide 36: Significant Positive Economic Impact on the Yukon
SIGNIFICANT POSITIVE ECONOMIC IMPACT ON THE YUKON Economic Impact of the development of Casino Copper- Gold on the Yukon and Canada Over the Life of the Project, Casino is estimated to Each year Casino is estimated to • Contribute $44.3 billion to Canada’s GDP • Contribute $1.3 billion to Yukon’s ec
Slide 37: Cash Flow
CASH FLOW $1,600 $1,400 Cash Flow After Tax ($millions) $1,200 $1,000 $800 $600 $400 $200 $- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Year Note: Based on Casino Copper-Gold 2022 Feasibility Study. See “Notes” in Appendix. Base case metal prices used. TSX | NYSE AMERICA
Slide 38: Metal Production
METAL PRODUCTION 350 500 450 Gold Production (thousands ozs) Copper Production (millions lbs) 300 400 250 350 200 300 250 150 200 100 150 100 50 50 - - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Year
Slide 39: Share vs Copper Price Performance
SHARE VS COPPER PRICE PERFORMANCE WRN trades inline, in some cases outperforms, the copper price Copper WRN U$5.50 May 17, 2021 Nov 23, 2022 Mar 24, 2023 Apr 11, 2023 C$3.50 Rio Tinto C$25.6M Rio Tinto Mitsubishi Materials Rio Tinto Exercise Strategic Investment Extends Rights C$21.3M Participation
Slide 40: History
HISTORY 1917: First known record of mineral claim 1930’s: Discovery of silver-lead veins 1965-1980: 370 tonnes of hand-cobbed lead/silver ore sent to Trail, BC 1967: ID of Cu porphyry potential Brameda, Quintana & Teck diamond drill 12,300 m +RC drill 5,200 m 1991: Archer, Cathro and Associates diam
Slide 41: Project Team
CASINO COPPER-GOLD PROJECT PROJECT TEAM Engineering Lead: M3 Engineering & Development • Geotechnical: Knight Piésold • Mining: Independent Mining Consultants, Inc. • Metallurgical: ALS Metallurgical, International Metallurgical & Environmental, Arcadis (Chile) • Access road: Associated Engineering
Slide 42: Excellent Location
CASINO COPPER-GOLD PROJECT EXCELLENT LOCATION Yukon, Canada – Low political risk Population 40,000 Casino project is located 380 km from Whitehorse, Yukon 560 km from year-round port at Skagway, Alaska Mine and mill are in Selkirk First Nation Traditional Territory – same territory as the Minto mine
Slide 43: Property Geology
CASINO COPPER-GOLD PROJECT PROPERTY GEOLOGY Note: High grade zone dips off section. East-west longitudinal section 6958400 N. Based on Casino Copper-Gold 2022 FS. See “Notes” in Appendix. TSX | NYSE AMERICAN | WRN 43
Slide 44: Mining
CASINO COPPER-GOLD PROJECT MINING Pit designs for five mining phases were developed to produce 45.4 M tonnes per year of mill feed ore Mill material is limited to approximately 1.2 billion tonnes due to TMF capacity The pits were designed with 40 m wide ramps, 20 m benches. 45 degree overall pit slo
Slide 45: Processing
CASINO COPPER-GOLD PROJECT PROCESSING Milling • Throughput: average LOM 120,000 tonnes per day • Grinding Circuit: 40 ft SAG Mill (29 MW) + 2 x 28 ft Ball Mills (22 MW each) • Medium – soft ore: BWi – 14.5 kWh/t, 200 µm primary grind Flotation • Conventional copper/moly circuit • Recoveries: Copper
Slide 46: Excellent Concentrate Quality
CASINO COPPER-GOLD PROJECT EXCELLENT CONCENTRATE QUALITY ELEMENT AVG VALUE UNIT ELEMENT AVG VALUE UNIT Copper 28 % Molybdenum 57.4 % Gold 25 g/t MOLYBDENUM CONCENTRATE Copper 0.39 % Silver 120 g/t COPPER CONCENTRATE Rhenium 133.5 g/t Molybdenum 0.05 % Iron 0.8 % Iron 26 % Sulphur 37.9 % Sulphur 36 %
Slide 47: Feasibility Study Operating Cost
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY OPERATING COST LOM (C$/TONNE) MILLING Milling $6.42 OPERATION Mining $4.28 General & Administrative $0.46 Total $11.16 HEAP LEACH Heap Leach Operation $1.93 OPERATION ADR/SART $4.80 Total $6.73 Note: Based on Casino Copper-Gold 2022 FS at base case metal
Slide 48: Comparable Opex
CASINO COPPER-GOLD PROJECT COMPARABLE OPEX Mill Throughput Casino Copper-Gold (FS) 120,000 tpd Copper Mountain (2020) 45,000 tpd Copper Mountain (2021) Mount Milligan (2020) 60,000 tpd Mount Milligan (2021) Gibraltar (2020) 85,000 tpd Gibraltar (2021) Highland Valley (2020) 155,000 tpd Highland Vall
Slide 49: Comparable Capex
Unit Capex (US$/t CuEq/y) $5,000 $0 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Florence Copper ($0.2 B) Los Helados ($1.2 B) Agua Rica ($2.2 B) Carrapateena ($0.7 B) Mantoverde ($0.8 B) Pumpkin Hollow ($1.1 B) CASINO COPPER-GOLD PROJECT Josemaria ($2 B) Resolution ($6 B) Ann Mason ($1.4
Slide 50: ANA and Casino B
CASINO COPPER-GOLD PROJECT ANA AND CASINO B Note: See “Notes” in Appendix TSX | NYSE AMERICAN | WRN 50
Slide 51: 2022 Casino Copper-Gold Resource
2022 CASINO COPPER-GOLD RESOURCE MILL RESOURCE ($6.11/t NSR CUTOFF) NSR Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class Mt (C$/t) (%) (g/t) (%) (g/t) (%) (M lb) (M oz) (M lb) (M oz) Measured 144.9 40.09 0.30 0.38 0.024 2.1 0.64 953 1.8 75.2 9.6 Indicated 2,114.2 20.34 0.14 0.16 0.015 1.4
Slide 52: 2022 Casino Copper-Gold Resource
2022 CASINO COPPER-GOLD RESOURCE TOTAL RESOURCE (MILL + HEAP LEACH) NSR Copper Gold Silver Copper Gold Silver Class Mt (C$/t) (%) (g/t) (g/t) (M lb) (M oz) (M oz) Measured 188.2 36.34 0.24 0.40 2.2 1,005.0 2.4 13.3 Indicated 2,302.6 19.61 0.13 0.17 1.4 6,638.1 12.4 103.9 M+I 2,490.7 20.88 0.14 0.18
Slide 53: 2022 Casino Copper-Gold Reserve
2022 CASINO COPPER-GOLD RESERVE MILL RESERVE NSR Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class Mt (C$/t) (%) (g/t) (%) (g/t) (%) (M lb) (M oz) (M lb) (M oz) Proven 140.1 38.50 0.31 0.39 0.024 2.1 0.67 944 1.8 74.9 9.4 Probable 1,076.9 23.68 0.17 0.19 0.021 1.6 0.36 4,135 6.7 497.1 55.5
Slide 54: Notes
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for hypogene sulphide mill material is: Technical report entitled “Casino Copper-Gold Project, Form 43-101 F1 - NSR (C$/t) = $73.81 x copper (%) + $41.16 x gold (g/t) + $213.78 x moly (%) + Technical Report Feasibility Study” dated June 13, 20
Slide 55: Notes
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for leach material is Mineral Reserve - NSR (C$/t) = $14.05 x copper (%) + $47.44 x gold (g/t) + $0.210 x silver (g/t), based on recoveries of 18% copper, 80% gold and 26% silver. • The Mineral Reserve estimate has an effective date of June 13
Slide 56: Contact
info@westerncopperandgold.com 604 684 9497 www.westerncopperandgold.com TSX | NYSE AMERICAN | WRN
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