Northisle Copper And Gold Inc. · TSXV:NCX
Northisle Copper And Gold — Investor Presentation (March 2023)
42 slides from Northisle Copper And Gold's investor presentation, Mar 20, 2023
Slide 1: Canada's Leading Sustainable Resource Opportunity
Canada’s Leading Sustainable Resource Opportunity CORPORATE OVERVIEW MARCH 2023 | TSX-V:NCX TD CONFERENCE January 223
Slide 2: Cautionary Disclaimer Regarding Forward-Looking Statements and Information
Cautionary Disclaimer Regarding Forward- Looking Statements and Information Certain of the statements and information in this presentation constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information
Slide 3: NorthIsle: A Billion Dollar Development Project with Exploration Upside for Free
NorthIsle: A Billion Dollar Development Project with Exploration Upside for Free Robust Preliminary Economic Assessment $1.1 billion After-tax NPV, 19% IRR <4 year payback and >30% Gold by Revenue Rapid and Sustainable Development Collaborative relationships with First Nations in a Top Global Mining
Slide 4: The World Needs More Copper
The World Needs More Copper Copper is the ultimate energy transition metal $100+ billion needs to be $700+ billion by 2050 invested in copper projects by 2030 TSXV: NCX 4
Slide 5: Will ESG Steer Investment?
Will ESG Steer Investment? Canada is among the top, low ESG risk, jurisdictions in the world Environmental Social Governance TSXV: NCX 5
Slide 6: Generational Opportunity for Northisle
Generational Opportunity for Northisle Indigenous, Federal and Provincial Governments are Aligning FEDERAL GOVERNMENT FIRST NATION “Critical minerals are the building blocks “This agreement represents a good first step and sets a for the green and digital economy. There strong foundation for our rel
Slide 7: Capital Markets Profile
Capital Markets Profile SHARE PRICE PERFORMANCE1 $0.50 4 $0.45 3 $0.40 Volume (millions) 3 Share Price (C$) $0.35 $0.30 2 $0.25 $0.20 2 $0.15 1 $0.10 1 $0.05 - - Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 CAPITAL STRUCTURE SHAREHOLDER DISTRIBUTION Insi
Slide 8: Scarcity of Quality Projects in Canada
Scarcity of Quality Projects in Canada If you’re looking for impactful, developable projects with good value, which would you choose? Life of Mine and LOM Avg Production (Cu Eq. mm lbs) NPV (US$m) and IRR (after-tax) 27 22 Production LOM 18% NPV IRR 25% 22% 22% 19% 18 12 11 11 13% 7 7% 329 156 91 84
Slide 9: Immense Value Opportunity
Immense Value Opportunity Significant Resource at an Attractive Valuation Precedent Transactions Enterprise Value / M+I Resources & M+I Resource $829 Enterprise Value/M+I Resource (US$/t CuEq) $478 M+I Resources (Mt CuEq) 16.2 42.8 42.8 $362 $322 8.2 $238 6.6 5.7 5.0 $152 $130 $121 $98 3.1 2.7 2.4 $
Slide 10: 2022 Highlights
2022 Highlights Progressing the Project and Strengthening our Partnerships GOLD-ENRICHED ZONE SIGNED AGREEMENT WITH IDENTIFIED AT NW EXPO IN CU QUATSINO FIRST NATION PORPHYRY ENHANCED MANAGEMENT $7 MILLION FINANCING USING AND BOARD CAPABILITY AND CRITICAL MINERALS FT CREDIT DIVERSITY DRILLED 200M EX
Slide 11: Experienced, Effective Leadership
Experienced, Effective Leadership ✓ PROVEN TRACK RECORD in finding ✓ OVER 200 YEARS collective mining ✓ SUSTAINABLE APPROACH to mineral and developing world class mines and capital markets experience discovery and project development Sam Lee, CFA President & CEO1, Director Dale Corman, P.Eng Chairma
Slide 12: Steps Towards Sustainability
Steps Towards Sustainability Contribute to the Reduction in Carbon Emissions 1 • Access to clean BC power makes a low carbon emission mine conceivable • Copper is driving the green energy revolution and is critical for expanded electrification infrastructure and innovation Connecting with our Commun
Slide 13: North Island – Exceptional Infrastructure
North Island – Exceptional Infrastructure Historical logging and mining activity has left a legacy of roads, power and ports TSXV: NCX 13 13
Slide 14: North Island – Project Benchmarking
North Island – Project Benchmarking Grades compare well with current operating mines in British Columbia METAL VALUE DISTRIBUTION Cu Eq. M&I RESOURCE GRADE FOR CURRENT BC OPERATING MINES1 (based on 2021 PEA) 0.55% 0.48% 0.41% 0.30% 0.28% Gold Molybdenum 0.23% 33% 5% Copper 62% Red Chris Mount Millig
Slide 15: Simple and Straightforward Mining
Simple and Straightforward Mining Hushamu is a large tonnage porphyry system occurring near surface Predictable copper porphyry mineralization open for expansion Strip ratio, combined with Red Dog, of 0.71:1 Higher grade available in initial pit at valley bottom TSXV: NCX 15
Slide 16: Simple and Straightforward Mining
Simple and Straightforward Mining Red Dog is a higher-grade initial feed source which outcrops at surface Strip ratio less than 0.2x Excellent potential to add further via exploration in close proximity Breccia with better anticipated recoveries Only 7km from contemplated processing facili
Slide 17: Summary – 2021 North Island PEA
Summary – 2021 North Island PEA PEA HIGHLIGHTS – BASE CASE 1,2 ✓ Robust economics After-tax C$1.1bn NPV8% (C$1.7bn NPV5%) NPV Pre-tax C$1.5bn NPV8% (C$2.3bn NPV5%) ✓ High leverage to copper and gold After-tax 19.0% IRR IRR Pre-tax 21.7% IRR ✓ Significant production profile Payback 3.9 years ✓ Simple
Slide 18: 2021 PEA Economic Sensitivity
2021 PEA Economic Sensitivity Robust Economics with Significant Upside at Current Metal Prices $1,396 $1,059 NPV (C$m, 8%) IRR 22.3% 19.0% After-tax Economics 2021 PEA 2021 PEA Metal Price Scenario Base Case1 Spot Feb 2, 20212 NPV5% C$1,683m C$2,116m NPV8% C$1,059m C$1,396m IRR 19.0% 22.3% Payback 3
Slide 19: North Island has Low Capital Intensity
North Island has Low Capital Intensity Capital efficient due to significant existing infrastructure CAPEX / THROUGHPUT (US$000/TPD) $134.1 $94.1 $69.5 <US$15k/t Cu Eq pa $24.1 $23.6 $21.1 $20.5 $20.3 $19.9 $19.9 $14.5 $14.4 El Domo McIlvenna Bay Casino Pebble Josemaria Kutcho Carmacks Filo del Sol K
Slide 20: Competitive Operating Costs
Competitive Operating Costs Potential for first quartile AISC North Island will be a low-cost producer of highly Total Site Operating Costs marketable concentrate products Area C$/tonne processed LOM AISC of C$0.90/lb Cu (US$0.68) places Mining Cost1 $3.84 North Island firmly in the first quarti
Slide 21: Exploration Focus
Exploration Focus North Island is a camp-scale asset with multiple highly prospective porphyry systems Near-Deposit Targets for New Discoveries Expansion Red Dog Hushamu NW Expo Surface alteration expression of new targets consistent with existing deposits along major structural trend Goodspeed Maci
Slide 22: Island Copper Mineralization
Island Copper Mineralization 1995 Pit Outline and alteration map informs structural understanding Source: Adapted from José Péreilló et al., Economic Geology, 1995 TSXV: NCX 22
Slide 23: NW Expo – New High Grade Gold-rich Copper Porphyry Zone
NW Expo – New High Grade Gold-rich Copper Porphyry Zone Drilling in Zone 1 has defined an open volume with high gold grades • NW21-03 intersects 84.8m grading 1.20 g/t Au Eq. including 25m grading 1.46g/t Au Eq. • NW21-04 intersects 33m grading 0.51 g/t Au Eq. and 54m grading 0.37g/t Au Eq. 150m eas
Slide 24: NW Expo – Resource Definition Drilling in 2023 at Gold-rich Copper Porphyry Zone
NW Expo – Resource Definition Drilling in 2023 at Gold-rich Copper Porphyry Zone Drilling in Zone 1 has defined an open volume with higher gold grades in a copper porphyry TSXV: NCX 24
Slide 25: Hushamu – Expansion Potential
Hushamu – Expansion Potential Significant Opportunity for Expansion, Improved Resource Grade and Tonnage With Continued Drilling Open in multiple directions and at depth with potential to improve grades within pit shell TSXV: NCX 25
Slide 26: Hushamu – Expansion Potential
Hushamu – Expansion Potential Significant Opportunity for Expansion, Improved Resource Grade and Tonnage With Continued Drilling Infill Drilling Intersected Higher Grade (580700E) Historical drilling near section 5613600N now interpreted to be in a lower grade fault or dike zone Drilling adjacent on
Slide 27: Pemberton Hills – New Discovery Potential
Pemberton Hills – New Discovery Potential Immense Lithocap Dipping Southwest Dip Slope Dip Slope Dip Slope TSXV: NCX 27
Slide 28: Pemberton Hills – New Discovery Potential
Pemberton Hills – New Discovery Potential Block faulting consistent with regional structures SE *Not to scale* Pemberton Hills Schematic Cross-section showing Hypothesized dip and faulting of Area drilled in 2018/2021 Lithocap Area for future drilling TSXV: NCX 28
Slide 29: Pemberton Hills – New Discovery Potential
Pemberton Hills – New Discovery Potential Buried Cu-Au-Mo porphyry target beneath an aerially extensive lithocap 6.5km x 1.5km area of high-level advanced argillic alteration and silica cap typically found above buried porphyry systems Large IP target subject of various exploration programs by S
Slide 30: Goodspeed – New Discovery Potential
Goodspeed – New Discovery Potential Goodspeed outcrop with CMG and copper mineralization o Recently completed structural and alteration mapping has outlined a large area of silica- clay-pyrite alteration o 500m by 350m core of chlorite-magnetite (CMG) alteration containing stockwork quartz-magnetite
Slide 31: Near Term Catalysts
Near Term Catalysts Northwest Expo Gold-Rich Zone 1 Drilling Northwest Expo Gold-Enriched Zone 1 Resource Advancement of Pemberton Hills Target Definition via Surface Exploration (mapping, geophysics) at Northwest Expo and Pemberton Northwest Expo and Hushamu Metallurgical Testing First Nations Rela
Slide 32: Copper and Gold Inc. contact
COPPER AND GOLD INC. Suite 1200 – 1166 Alberni Street Vancouver, British Columbia V63 3Z3 Investor Inquiries: Nicholas Van Dyk, Chief Financial Officer +1.604.638.2515 info@northisle.ca www.northisle.ca TSXV: NCX 32
Slide 33: Appendix
—_. NORTHISLE COPPER AND GOLD INC. APPENDIX
Slide 34: Green Demand to Benefit Copper
Green Demand to Benefit Copper Environmental & social-based policy shifts underway Copper Demand from Green Sectors (ktpa)2 • Metals are at the center of the next commodity super cycle and green Total Charging Points Demand demand is poised to drive copper usage Total EV Demand • New policies global
Slide 35: Cu Market Conditions Look Promising
Cu Market Conditions Look Promising…. Favourable macro conditions to support rising copper prices Improving Chinese Refined Copper Demand1 15,000 • Unprecedented expansionary monetary and fiscal policies is driving a strong China refined copper consumption 14,000 stimulus-backed global recovery unde
Slide 36: …as do those for our by-products
…as do those for our by-products North Island by-products add to already robust economics Inflation concerns aiding the gold market Gold Price Performance – 2015-2025E1 • Gold has rebounded from its earlier highs in January $2,500 Spot Au US$ 1,778/oz • An important by-product for North Island, the
Slide 37: How Copper Fits a Greener Economy
How Copper Fits a Greener Economy1 Electric Vehicles Solar Panels Copper is critical for efficiency and performance of Electric vehicles have more than 5 times the copper of ICE photovoltaic panels vehicles and by the end of decade they will account for around and thanks to their rapidly 40% of the
Slide 38: The Time is NOW for Copper
The Time is NOW for Copper Supportive supply and demand fundamentals improving the copper market outlook Key Supply Drivers Geopolitical supply disruptions Declining inventory levels Maturing global supply and head grades with a limited pipeline Key Demand Drivers Reflationary EV revolution New poli
Slide 39: British Columbia: Supportive Tier 1 Jurisdiction
British Columbia: Supportive Tier 1 Jurisdiction Population ✓ Top quartile best mining jurisdiction (F.I.) 15,000 ✓ Numerous mines permitted in last 10 years, most recently Brucejack ✓ 5 copper-gold deposits currently in production Population 750,000 ✓ Northern Vancouver Island is dependent on resou
Slide 40: Bonanza Formation at North Island
Bonanza Formation at North Island An Analog to the Indonesian Arc? Bonanza Formation on North Island is analogous to the Indonesian Arc with multiple phases of intrusive and hydrothermal activity North Island porphyry occurrences along a clear structural trend with some regional faulting TSXV: NCX 4
Slide 41: Pemberton Hills
Pemberton Hills Clay mineralogy, chargeability and pyrite abundance are all important indicators for fluid flow source in a porphyry system TSXV: NCX 41
Slide 42: Pemberton Hills
Pemberton Hills Block faulting consistent with regional structures Southwest Dipping Block Faulted Extension of Pemberton Hills Lithocap / Silica Cap Holberg Inlet Dip Slope Interpreted Block Faults TSXV: NCX 42
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