Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (August 2022)
38 slides from Western Copper And Gold's investor presentation, August 2022
Slide 1: Developing Canada's Premier Copper-Gold Mine
TSX WRN NYSE AMERICAN WRN DEVELOPING CANADA’S PREMIER COPPER-GOLD MINE Corporate Presentation August 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 August 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 Shar
Slide 4: 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 5: 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 6: 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 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: Casino Copper-Gold 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 9: 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 10: 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 10
Slide 11: Casino Copper-Gold Project
CASINO COPPER-GOLD PROJECT TSX | NYSE AMERICAN | WRN
Slide 12: 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 13: 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 14: 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 15: 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$14/lb Note: Based on Ca
Slide 16: Feasibility Study – Key Changes from PEA
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY – KEY CHANGES FROM PEA Notable changes from the PEA: Heap Leach Operation • Gold recovery from the heap leach increased to 80% by crushing the ore going to the heap leach to a p80 of 16 mm. • 20% greater gold recovery through the heap leach circuit due to
Slide 17: Significant Contribution from Early Years
CASINO COPPER-GOLD PROJECT SIGNIFICANT CONTRIBUTION FROM EARLY YEARS YEARS LIFE OF 1-4 MINE AVERAGE Cash Flow (Pre-tax) (C$ 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 18: Feasibility Study Operating Cash Costs
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY OPERATING CASH COSTS BASE CASE BY- Copper Cash Cost PRODUCT (1.00) Net of By-Products (C$/lb) COSTS CO- Copper Cash Cost 1.92 PRODUCT Co-Product (C$/lb) COSTS Gold Cash Cost 909 Co-Product (C$/oz) Note: Based on Casino Copper-Gold 2022 Feasibility Study a
Slide 19: Feasibility Study Capital Costs
CASINO COPPER-GOLD PROJECT FEASIBILITY STUDY CAPITAL COSTS PROJECTED CAPITAL COSTS C$ 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 $433 Mine Prepro
Slide 20: Economic Throughout the Commodity Cycle
CASINO COPPER-GOLD PROJECT ECONOMIC THROUGHOUT THE COMMODITY CYCLE COPPER PRICE ($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 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 practices in protecting the standards and building of cultural values environment long term value • Ongoing Engagement with Local • Acce
Slide 22: 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 23: 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 24: 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 25: 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 26: Enterprise Value/Project NPV Benchmarking
ENTERPRISE VALUE/PROJECT NPV (STUDY) BENCHMARKING 2.33x WRN trades at 0.12x NPV, a significant discount to its peers 1.26x 1.14x WESTERN COPPER & GOLD 0.54x 0.47x 0.32x 0.29x 0.21x 0.20x 0.15x 0.12x 0.10x 0.09x 0.08x 0.07x 0.05x 0.05x Sandfire Res. Am. Trilogy Metals (Cascabel) Pacific Booker (Pumpk
Slide 27: Enterprise Value/Copper Equivalent Resource Benchmarking
ENTERPRISE VALUE/COPPER EQUIVALENT RESOURCE BENCHMARKING (US¢/lb CuEq) ¢20.7 WRN is undervalued with greater growth ¢18.7 opportunity compared to its peers ¢17.2 WESTERN COPPER & GOLD ¢5.8 ¢4.7 ¢4.1 ¢2.3 ¢2.1 ¢2.0 ¢1.7 ¢1.4 ¢1.1 ¢0.8 ¢0.7 ¢0.4 ¢0.4 ¢0.1 Sandfire Res. Am. Trilogy Metals (Cascabel) Pa
Slide 28: 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 29: Analyst Coverage
ANALYST COVERAGE CORMARK SECURITIES H.C. WAINWRIGHT & CO. Stefan Ioannou Heiko F. Ihle, CFA 416 943 4222 212 356 0500 TSX | NYSE AMERICAN | WRN 29
Slide 30: Appendix
APPENDIX TSX | NYSE AMERICAN | WRN
Slide 31: 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 32: 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 33: 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 34: 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$/t) (%) (g/t) (g/t) (M lb) (M oz) (M oz) Measured 188.2 36.34 0.24 0.40 2.2 1,005.0 2.4 13.3 Indicated 2,302.6 19.61 0.13 0.17 1.4 6,638.1 12.4 103.9 M+I 2,490.7 20.88 0.14 0.18
Slide 35: 2022 Casino Copper-Gold Reserve
2022 CASINO COPPER-GOLD RESERVE MILL RESERVE NSR Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class Mt (C$/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 36: 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) + $213.78 x moly (%) + Technical Report Feasibility Study” dated June 13, 20
Slide 37: Notes
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for leach material is Mineral Reserve - NSR (C$/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 38: Contact
info@westerncopperandgold.com 604 684 9497 www.westerncopperandgold.com TSX | NYSE AMERICAN | WRN
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