Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Technical Presentation (September 2022)
50 slides from Western Copper And Gold's technical presentation, September 2022
Slide 1: Developing Canada's Premier Copper-Gold Mine
TSX WRN NYSE AMERICAN WRN DEVELOPING CANADA’S PREMIER COPPER-GOLD MINE Technical Presentation September 2022
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 7.8% NYSE American SHAREHOLDERS September 2022 CASH Cash & Short-Term Fidelity Management & C$38.6 M 5.3% POSITION Investments Research Co. LLC June 30, 2022 Short/Long Term Debt $Nil Board and Senior 4.6% Management SHARE S
Slide 4: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Former investment Metallurgical Engineer with 30 years leadership and banker with a focus significant management development experience on capital markets and metallurgical overseeing the de-risking and mergers experience in increasingly and advanceme
Slide 5: Board of Directors
BOARD OF DIRECTORS Ken Williamson, Former investment banker. Mr. Williamson has served on B.A.Sc., MBA, P.Eng the boards of Eicon Technology Corporation, Glamis Gold Director & Interim Chairman Ltd., BioteQ Environmental Technologies Inc., Uranium One Inc., BlackRock Ventures Inc., Quadra FNX Mining
Slide 6: WRN & Casino Copper-Gold Project: Clear Investment Thesis
WRN & CASINO COPPER-GOLD PROJECT CLEAR INVESTMENT THESIS • One of the largest copper-gold projects in Canada • Located in the Yukon – new emerging mining district • New Feasibility shows robust economics and long life • Strategic investment from Rio Tinto strengthens credibility • Strong copper mark
Slide 7: Rio Tinto Strategic Investment C$25.6M
RIO TINTO STRATEGIC INVESTMENT RIO TINTO OWNERSHIP C$25.6M STRATEGIC INVESTMENT & ~ 8.0% OF WESTERN’S OUTSTANDING COMMON SHARES The investment is an opportunity The Scope of Work is defined and for Rio Tinto to better understand the potential performed in partnership with Rio, of the Casino Copper-G
Slide 8: Rio Tinto Work Program Progress
RIO TINTO WORK PROGRAM PROGRESS Executing on program developed in partnership with Rio Tinto WORK COMPLETED WORK IN PROGRESS • Metallurgical and geotechnical drilling • Metallurgical studies for sulphide • Resource confirmation drilling and oxide material • Soil sampling program east and south • Com
Slide 9: 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 10: 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 11: 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 12: 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 12
Slide 13: Casino Copper-Gold Project
CASINO COPPER-GOLD PROJECT TSX | NYSE AMERICAN | WRN
Slide 14: 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 15: 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 16: 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 17: 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 17
Slide 18: 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 19: 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 DDH21-09 Primarily breccia geology 289.6 m 1.01% CuEq from 36.6 m 65.8 m 2.53% CuEq Grades significantly
Slide 20: 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 21: 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 (466 Mt) Gibraltar - TKO (511 Mt) Highland Valley - TCK (329 Mt) PEERS Developing Mine Average Mt. Milligan - CG (191 Mt
Slide 22: Feasibility Study – Key Changes from PEA
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY – KEY CHANGES FROM PEA Notable changes from the PEA: Heap Leach Operation • Gold recovery from the heap leach increased to 80% by crushing the ore going to the heap leach to a p80 of 16 mm. • 20% greater gold recovery through the heap leach circuit due to
Slide 23: 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 24: 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 25: 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 COPPER CONCENTRATE g/t Rhenium 133.5 g/t Molybdenum 0.05 % Iron 0.8 % Iron 26 % Sulphur 37.9 % Sulphur 36 %
Slide 26: 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 27: Infrastructure: Roads
CASINO COPPER-GOLD PROJECT INFASTRUCTURE ROADS Straight-Forward Road Access All roads are well maintained and used year-round • 380 km from Whitehorse • 560 km from Skagway, Alaska (concentrate load-out facility) - 358 km – existing major highway - 70 km – existing road to be upgraded by Yukon Gover
Slide 28: 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 Agreements reached with First Nations on key aspects of remaining road Canadian Prime Minister Justin Trudeau and Yukon Premi
Slide 29: Infrastructure: Power & Port
CASINO COPPER-GOLD PROJECT INFRASTRUCTURE POWER & PORT Power • Power to be supplied by 3 gas turbine generators & 1 steam turbine generator 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 Whiteh
Slide 30: 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$14/lb Note: Based on Ca
Slide 31: Economic Throughout the Commodity Cycle
CASINO COPPER-GOLD PROJECT ECONOMIC THROUGHOUT THE COMMODITY CYCLE COPPER PRICE ($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) $1
Slide 32: Significant Contribution from Early Years
CASINO COPPER-GOLD PROJECT SIGNIFICANT CONTRIBUTION FROM EARLY YEARS YEARS LIFE OF 1-4 MINE AVERAGE Cash Flow (Pre-tax) (C$ 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 33: 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$/oz) Note: Based on Casino Copper-Gold 2022 Feasibility Stud
Slide 34: Feasibility Study Operating Cost
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY OPERATING COST LOM (C$/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 $6.73 Note: Based on Casino Copper-Gold 2022 FS at base case metal
Slide 35: Comparable Opex
CASINO COPPER-GOLD PROJECT COMPARABLE OPEX Mill Throughput Casino Copper-Gold (FS) 120,000 tpd Copper Mountain (2020) 45,000 tpd Copper Mountain (2021) Mount Milligan (2020) 60,000 tpd Mount Milligan (2021) Gibraltar (2020) 85,000 tpd Gibraltar (2021) Highland Valley (2020) 155,000 tpd Highland Vall
Slide 36: Feasibility Study Capital Costs
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY CAPITAL COSTS PROJECTED CAPITAL COSTS C$ 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 $433 Mine Prepro
Slide 37: Comparable Capex
Unit Capex (US$/t CuEq/y) $0 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $5,000 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 38: 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 39: Area Potential
AREA POTENTIAL TSX | NYSE AMERICAN | WRN
Slide 40: ANA and Casino B
CASINO COPPER-GOLD PROJECT ANA AND CASINO B Note: See “Notes” in Appendix TSX | NYSE AMERICAN | WRN 40
Slide 41: Deeper Porphyry Targets
CASINO COPPER-GOLD PROJECT DEEPER PORPHYRY TARGETS Deep Magnetotelluric Low- Resistivity Anomaly • Initially identified in 2009 • Better defined by data reprocessing in 2018 • 1300 m long and 500 m wide • Expected to be encountered at ~800 m *Note: See further detail in press release dated June 6, 2
Slide 42: 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 2 Projects in permitting Community and First Nation support *Based o
Slide 43: 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 Execute program Release of 2022 Submit Upcoming developed in partnership Drilling Results EA propos
Slide 44: Analyst Coverage
ANALYST COVERAGE CORMARK SECURITIES ROTH CAPITAL PARTNERS H.C. WAINWRIGHT & CO. Stefan Ioannou Heiko F. Ihle, CFA 416 943 4222 949 720 7108 212 356 0500 TSX | NYSE AMERICAN | WRN 44
Slide 45: Appendix
APPENDIX TSX | NYSE AMERICAN | WRN
Slide 46: 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 47: 2022 Casino Copper-Gold Resource (Total)
2022 CASINO COPPER-GOLD RESOURCE TOTAL RESOURCE (MILL + HEAP LEACH) NSR Copper Gold Silver Copper Gold Silver Class Mt (C$/t) (%) (g/t) (g/t) (M lb) (M oz) (M oz) Measured 188.2 36.34 0.24 0.40 2.2 1,005.0 2.4 13.3 Indicated 2,302.6 19.61 0.13 0.17 1.4 6,638.1 12.4 103.9 M+I 2,490.7 20.88 0.14 0.18
Slide 48: Notes
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for hypogene sulphide mill material is: Technical report entitled “Casino Copper-Gold Project, Form 43-101 F1 - NSR (C$/t) = $73.81 x copper (%) + $41.16 x gold (g/t) + $213.78 x moly (%) + Technical Report Feasibility Study” dated June 13, 20
Slide 49: Notes
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for leach material is Mineral Reserve - NSR (C$/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 50: Contact
info@westerncopperandgold.com 604 684 9497 www.westerncopperandgold.com TSX | NYSE AMERICAN | WRN
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