Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (April 2020)
47 slides from Western Copper And Gold's investor presentation, April 2020
Slide 1: Developing Canada's Premier Copper-Gold Mine
DEVELOPING CANADA’S PREMIER COPPER-GOLD MINE APRIL 2020 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: The Casino Story Is Taking Off
THE CASINO STORY IS TAKING OFF SIGNIFICANT COPPER-GOLD DEPOSIT Feasibility Study indicating strong Project with great economics Stable jurisdiction with clear path through permitting RECENT EXPLORATION SUCCESS New gold zone and new copper-gold porphyry discovered New acquisition of claims to
Slide 4: Significant Copper-Gold Deposit
SIGNIFICANT COPPER-GOLD DEPOSIT ALASKA YUKON CASINO PROJECT Whitehorse GOLD COPPER Skagway 8.9 M 4.5 B oz Reserves lbs Reserves + + 9.0 M 5.4 B oz Inferred Resources lbs Inferred Resources B.C Vancouver + ….. UPDATED RESOURCE PENDING Note: see Appendix for detailed Casino mineral resource & reserve.
Slide 5: An Attractive Copper or Gold Mine
AN ATTRACTIVE COPPER OR GOLD MINE Silver Moly 2% 11% Copper 39% Gold 49% *ESTIMATED REVENUE DISTRIBUTION (FIRST 4 YEARS AT SPOT PRICES) Note: US$1,700 Au, US$2.25 Cu, Mo US$11.00, Ag US$15.25, FX: US$:C$ 1:0.72. Source: Casino Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : W
Slide 6: TSX/V Junior Controlled Copper Projects
TSX/V JUNIOR CONTROLLED COPPER PROJECTS – ONLY 15 UKMP Pebble CASINO Kutcho KSM Morisson Northisle Harper Creek Northmet King King Cascabel Tampakan Canariaco Norte Cotabambas Mina Justa Project Constellation MANY OF THESE PROJECTS: • are too small to have an impact on copper supply Productora • are
Slide 7: Top 10 Largest TSX/V Junior Controlled Gold Projects
TOP 10 LARGEST TSX/V JUNIOR CONTROLLED GOLD PROJECTS Pebble CASINO KSM Donlin Livengood Rosia Montana New Prosperity Metates Tampakan Freida River Los Helados MANY OF THESE PROJECTS: • are not economic at current prices • are located in unfavorable jurisdictions • have environmental and/or technical
Slide 8: The Casino Project
& western COPPER AND GOLD 2 THE CASINO PROJECT
Slide 9: Resource & Reserve (2013)
RESOURCE & RESERVE (2013) RESERVE (P&P) Leached cap: 157 Mt @ 0.29 g/t Au 8.9 million oz Gold Initial 4 years: 172 Mt @ 0.70% CuEq 4.5 billion lbs Copper 22 Year Mine Life: 965 Mt @ 0.50% CuEq >0.25% CuEq <0.25% CuEq INFERRED RESOURCE 0m 250m 500m 9.0 million oz Gold 0.95% CuEq over 689m 1,710 Mt @
Slide 10: Unparalleled IRR and Payback for a Large Project
UNPARALLELED IRR AND PAYBACK FOR A LARGE PROJECT NPV IRR PAYBACK @8% (C$) (years) $3.1 B 27.1 % 2.2 Project Economics at $2.25 Cu and $1,700 Au (after-tax) Note: US$1,700 Au, US$2.25 Cu, Mo US$11.00, Ag US$15.25, FX: US$:C$ 1:0.72. Source: Casino Feasibility Study. See “Notes” in Appendix. TSX : WRN
Slide 11: Economic Throughout the Commodity Cycle
ECONOMIC THROUGHOUT THE COMMODITY CYCLE 45% Gold Price $7.0 Gold Price $2500/oz $2500/oz $ 5.0B NPV at top 40% $6.0 of last cycle prices $2000/oz $2000/oz 35% $5.0 NPV, Billions (after-tax) $1500/oz $1500/oz IRR (after-tax) 30% $1000/oz $4.0 $1000/oz 25% $3.0 20% $2.0 IRR above 15% through 15% entir
Slide 12: Production
PRODUCTION Y1 to Y4 22 YRS Grade % CuEq 0.70 0.50 Copper production (M lb/y) 245 171 500 (ktpa) 111 78 450 Copper (million lbs), Gold (thousand ozs) CuEq Production (M lb/y) 516 382 400 Gold Production (k oz/y) 399 266 350 AuEq Production (k oz/y) 1,179 872 300 Strip Ratio 0.49 0.59 250 200 150 100
Slide 13: Comparable Capex
Unit Capex (US$/t CuEq/y) $0 $5,000 $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) Josemaria ($2 B) COMPARABLE CAPEX TSX : WRN I NYSE AMERICAN : WRN Resolution
Slide 14: Social License
SOCIAL LICENSE Accepting award for Outstanding Environmental stewardship COMMUNITY Ongoing Engagement with Local Communities 14+ Years of Operating Responsibly in the Yukon SUPPORTING FIRST NATIONS Selkirk Spirit Dancers Biennial Moosehide Significant and Continuing Tantalus Hot Lunch Pr
Slide 15: Access Road Funding
ACCESS ROAD FUNDING $130 million funding committed from Governments for the Casino Access Road Canadian Prime Minister Justin Trudeau and Yukon Premier Canadian Prime Minister Justin Trudeau and Yukon Premier Sandy Silver Sandy Silver TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier C
Slide 16: Exploration Success
EXPLORATION SUCCESS TSX : WRN I NYSE AMERICAN : WRN
Slide 17: Resource Conversion Opportunity
RESOURCE CONVERSION OPPORTUNITY 2019 drilling targeting conversion of inferred resource inside pit New resource expected in early 2020 22 year Pit Inferred Resource TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 17
Slide 18: High Grade Gold Zone
HIGH GRADE GOLD ZONE 55.1 g/t Au over 73.6 g/t Au over 2.97 m @ 147.98 m 1.85 m @ 69.16 m 53.5 g/t Au over 2.45 m @ 343.55 m Intercepts > 2 g/t gold Trend of very high gold values High Bismuth Zones Note: See News Release dated December 19, 2019 for details on drilling program. TSX : WRN I NYSE AMER
Slide 19: New Northern Porphyry
NEW NORTHERN PORPHYRY 0.38% CuEq* over 2019 Northern step-out 107.83 m @ 40 m • 9/10 holes with significant widths of mineralization • 7/10 holes ended in mineralization Note: See News Release dated December 19, 2019 for details on drilling program. *See Appendix for CuEq calculation. TSX : WRN I NY
Slide 20: Western Expansion
WESTERN EXPANSION Western step-out • All holes intercepted mineralization • 3/6 holes ended in mineralization 3.6 g/t Au over 2.00 m @ 183.4 m Note: See News Release dated December 19, 2019 for details on drilling program. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine
Slide 21: Western Targets – Canadian Creek Claims
WESTERN TARGETS – CANADIAN CREEK CLAIMS • Ana– porphyry target • Casino B– gold targets Note: Based on Canadian Creek Summary Report. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 21
Slide 22: 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 23: Key Asset in an Emerging New Gold District
KEY ASSET IN AN EMERGING NEW GOLD DISTRICT Significant players – Newmont, Agnico- Eagle, Kinross, + others 25 million+ ounces of gold in district* WHITE GOLD Significant exploration upside Gov’t commitment to fund access to area 2 Projects in permitting Community and First Nation support
Slide 24: Clean and Tightly-Held Ownership Structure
CLEAN AND TIGHTLY-HELD OWNERSHIP STRUCTURE TRADING Toronto Stock Exchange TSX: WRN NYSE American Stock Exchange NYSE American: WRN CASH POSITION Cash & Short Term Investments C$ 3.6 million *includes proceeds from Feb, 2020 Private Placement Dec 31, 2019 (*pro-forma) Short/Long Term Debt $Nil SHARE
Slide 25: The New Casino
THE NEW CASINO INVESTMENT HIGHLIGHTS: Casino project already ticks many of the boxes Significant copper and significant gold project Feasibility Study indicating robust project with great economics Strong community and government support Key Permitting hurdles removed New gold zone and a
Slide 26: Analyst Coverage
ANALYST COVERAGE CORMARK SECURITIES ROTH CAPITAL PARTNERS H.C. WAINWRIGHT & CO. Stefan Ioannou Jake Sekelsky Heiko F. Ihle, CFA Tel: (416) 943-4222 Tel: (646) 616-2786 Tel: (212) 356 - 0510 TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 26
Slide 27: Appendix
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Slide 28: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Dale Corman, B.Sc., P.Eng Paul West-Sells, PhD Cameron Brown, P.Eng Executive Chairman President & CEO VP Engineering Extensive experience in Metallurgical Engineer with Formerly Project Manager for mineral development, significant management and Bech
Slide 29: Board of Directors
BOARD OF DIRECTORS Dale Corman, 40 years experience as a senior corporate officer of publicly listed companies. B.Sc, P.Eng. Extensive expertise in mineral exploration & development, financing, property Executive Chairman evaluation and acquisition. Formerly Chairman & CEO of Western Silver Corporat
Slide 30: Excellent Cash Costs
EXCELLENT CASH COSTS COPPER COSTS Spot Cash Cost Net of By-Product ($/lb) (2.45) Co-Product Cash Cost (Cu) US$/lb 1.55 GOLD COSTS Spot Cash Cost Net of By-Product ($/oz) (979) Cash Costs Co-Product Cash Cost (Au) US$/oz 865 Byproduct Revenue Cash Cost (net of Byproducts) NSR Royalty Yukon Royalty &
Slide 31: Advancing Permitting
ADVANCING PERMITTING Key permitting milestone recently achieved with the completion of Best Available Tailings Technology (BATT) Study. Importantly, First Nation, Territorial and Federal Governments were involved in the study examining every possible scenario for dealing with tailings and mine waste
Slide 32: Following a Proven Path to Create Value
FOLLOWING A PROVEN PATH TO CREATE VALUE May 2006 • Spin-out from Western Silver Transaction with Glamis (now Goldcorp) Nov 2006 • Acquired Casino Project from Lumina Resources 2008-2012 • Two Pre-Feasibility Studies Completed and Drilling to 100,000 m Jan 2013 • Bankable Feasibility Study Co
Slide 33: The World Needs a Lot More Copper
THE WORLD NEEDS A LOT MORE COPPER 5 million tonne deficit equivalent to annual production of 65 new casino mines Source: RBC Capital Markets estimates, Wood Mackenzie TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 33
Slide 34: Canadian Creek Acquisition
CANADIAN CREEK ACQUISITION • Secures ground adjacent to the Casino, where there is likelihood that the deposit extends • Several new drilling targets • Strategically positioned between the Casino and Newmont’s Coffee Project Coffee - Newmont Ana zone Canadian Creek - New WRN Acquisition WRN Note: Ba
Slide 35: East-West Longitudinal Section 6958400 N
EAST—WEST LONGITUDINAL SECTION 6958400 N Note: High grade zone dips off section. Based on Casino Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 35
Slide 36: Good Grade
GOOD GRADE MINERAL RESERVE GRADES IN LINE WITH PEERS: Casino Life of Mine (965 Mt) CASINO Casino Y1-Y4 (172 Mt) Copper Mountain - CMMC (2012) Highland Valley - TCK (2012) Gibraltar - TKO (790 Mt) Mt. Milligan - CG (482 Mt) PEERS Red Chris - NCM (301 Mt) Cobre Panama - FM (3058 Mt) 0.00 0.10 0.20 0.3
Slide 37: Project Economics
PROJECT ECONOMICS ECONOMICS Base Case Spot Copper (US$/lb) 3.00 2.25 Gold (US$/oz) 1,400 1,700 Molybdenum (US$/lb) 14.00 11.00 Silver (US$/oz) 25.00 15.25 Foreign Exchange (US$:C$) 0.95 0.72 NPV @ 8% (C$ M) 2,820 4,570 Pre-Tax IRR (100% equity) (%) 24.0 32.3 NPV @ 8% (C$ M) 1,830 3,060 After Tax IRR
Slide 38: Operating Costs
OPERATING COSTS ($/tonne) MILLING Milling $5.13 OPERATION Mining $3.05 General & Administrative $0.34 Total $8.52 ($/tonne) HEAP LEACH Heap Leach Operation $1.31 OPERATION ADR/SART $2.73 Total $4.04 Note: Based on Casino Feasibility Study, see “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Dev
Slide 39: Feasibility Study – January 2013
FEASIBILITY STUDY – JANUARY 2013 PROJECTED MINE COSTS $ Millions CAPITAL COSTS Mining Equipment & Mine Development 454 Concentrator (incl. related facilities) 904 Heap Leach Operation 139 Camp 70 Subtotal Mine Direct Costs 1,566 Indirect Costs 295 Subtotal Mine Direct & Indirect Costs 1,861 INFRASTR
Slide 40: Processing
PROCESSING MILLING • Throughput: average LOM 124,000 tonnes per day • Grinding Circuit: 40 ft SAG Mill (29 MW) + 2 x 28 ft Ball Mills (22 MW each) • Medium – soft ore: BWi – 14.1 kWh/t, 200 µm primary grind FLOTATION • Conventional copper/moly circuit • Recoveries: Copper 86%, Gold 67%, Moly 71%, Si
Slide 41: 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 Iron 0.8 % Molybdenum 0.05 % Sulphur 37.9 % Iron 26 % Arsenic 1659 g/t Sulphur 36 % Antimony
Slide 42: TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 42
Slide 43: Yukon Map
YUKON MAP TSX : WRN I NYSE AMERICAN : WRN Appendix 43
Slide 44: Yukon Map – Southern Half
YUKON MAP – SOUTHERN HALF TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 44
Slide 45: Casino - Mineral Reserve & Resource Estimates
CASINO - MINERAL RESERVE & RESOURCE ESTIMATES RESERVE RESOURCE AT 0.25% CuEq CUT-OFF Note: based on 2013 Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 45
Slide 46: Notes
NOTES “Casino Feasibility Study”: • Technical report entitled "Casino Project, Form 43-101 Technical Report Feasibility Study, Yukon, Canada – Revision 1" dated January 25, 2013, a copy of which is available on the Company's website at www.westerncopperandgold.com. • Prepared by Conrad E. Huss, P. E
Slide 47: www.westerncopperandgold.com
WWW.WESTERNCOPPERANDGOLD.COM INFO@WESTERNCOPPERANDGOLD.COM 604 684 9497
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