Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (September 2021)
42 slides from Western Copper And Gold's investor presentation, September 2021
Slide 1: September 2021 – Corporate Presentation
SEPTEMBER 2021 – CORPORATE PRESENTATION 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: Clean and Tightly-Held Ownership Structure
CLEAN AND TIGHTLY-HELD OWNERSHIP STRUCTURE TRADING Toronto Stock Exchange, NYSE American WRN CASH POSITION Cash & Short Term Investments C$ 57.7 million June 30, 2021 (*pro-forma) *Includes proceeds from July 2021 private placement Short/Long Term Debt $Nil SHARE STRUCTURE Share Price C$ 2.16 August
Slide 4: Rio Tinto Strategic Investment
RIO TINTO STRATEGIC INVESTMENT Rio’s investment provides opportunity for Rio to gain a better understanding of Casino, with a focus on technical, regulatory, and community aspects of the project. SCOPE OF WORK ▪ Defined and performed in partnership with Rio, including work to examine resource, metal
Slide 5: WRN and the Casino Deposit
WRN AND THE CASINO DEPOSIT ALASKA YUKON SIGNIFICANT COPPER-GOLD PROJECT ✓ One of the largest copper-gold projects in Canada CASINO PROJECT ✓ New PEA shows robust economics and long life Whitehorse ✓ Strategic investment from Rio Tinto strengthens credibility Skagway LOCATED IN THE RIGHT PLACE ✓ Yuko
Slide 6: An Attractive Copper or Gold Mine
AN ATTRACTIVE COPPER OR GOLD MINE CONTAINED METAL VALUE DISTRIBUTION IN SILVER THE M&I MILL RESOURCE 4% MOLY 18% GOLD GOLD 14.5 Million oz M+I Resources 38% + 6.6 Million oz Inferred Resources COPPER COPPER 7.6 Billion lbs M+I Resources + 3.3 Billion lbs of Inferred Resources 41% Source: Casino 2021
Slide 7: Significant Copper Deposit
SIGNIFICANT COPPER DEPOSIT 30 40 35 25 Copper Equivalent (B lbs) 30 20 Copper (B lbs) 25 15 20 15 10 10 5 5 0 0 Cascabel Casino Josemaria Rosemont Filo Del Sol Arctic Cascabel Casino Josemaria Rosemont Filo Del Sol Arctic (SOL) (WRN) (JOSE) (HBM) (FIL) (TMQ) (SOL) (WRN) (JOSE) (HBM) (FIL) (TMQ) ■ Me
Slide 8: Significant Gold Deposit
SIGNIFICANT GOLD DEPOSIT ■ Measured & Indicated Resources ■ Inferred Resources Notes: Peer group data as per latest company documents and public files. See “Notes” in Appendix for equivalent calculations. No discount for metallurgical recovery. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Pre
Slide 9: The Casino Project
& western COPPER AND GOLD THE CASINO PROJECT
Slide 10: Western Copper and Gold Casino PEA Summary
WESTERN COPPER AND GOLD CASINO PEA SUMMARY Phase I (0-25 years) Phase I + II Metal Prices Cu: US$3.35/lb Au: US$1,600/oz (0-47 years) NPV After-tax (8%) IRR After-tax Mine Life $2.33 Billion 19.5% 47 Years Strip Ratio Payback LOM Cash Flow After-tax LOM 0.38:1 3 Years $12 Billion Note: Based on Casi
Slide 11: What Is New – 2021 PEA
WHAT IS NEW – 2021 PEA UPDATED RESOURCE (released July 2020): ▪ M&I used for mill and heap leach feed ▪ Inferred material in the pit considered waste HEAP LEACH GOLD RECOVERY: ▪ Potential gold recovery from heap leach increased to 70% based on new column testing on various lithology samples ACCESS R
Slide 12: Proposed Tailings Design
PROPOSED TAILINGS DESIGN Tailings Facility Redesign - Reduced Risk, Reduced Environmental Impact and Improved Safety ▪ Redesign incorporates the outcomes of the BATT study – a collaboration with First Nations, YESAB and Yukon government ▪ Substantial reduction in the quantity of free-standing water
Slide 13: Casino Deposit
CASINO DEPOSIT Core Zone: Heap Leach Resource: 800 m X 500 m zone 217 Million Tonnes @ 0.27 g/t AuEq (M&I) Grades significantly higher than overall resource grade 31 Million Tonnes @ 0.18 g/t AuEq (Inferred) Phase I Pit Phase II Pit Mill Resource: >0.50% CuEq 2.17 Billion Tonnes @ 0.36% CuEq (M&I) 0
Slide 14: Good Grade
GOOD GRADE GRADES IN LINE WITH PEERS: Casino Mill Yr 1-4 (173 Mt) Casino Mill Phase I (1.1 Bt) CASINO Casino Mill Phase I + II (2.1 Bt) Operating Mine Average Copper Mountain - CMMC (466 Mt) Gibraltar - TKO (511 Mt) Highland Valley - TCK (329 Mt) PEERS Developing Mine Average Mt. Milligan - CG (191
Slide 15: Early Production Significant Contributor to Project Economics
EARLY PRODUCTION SIGNIFICANT CONTRIBUTOR TO PROJECT ECONOMICS Years 1-4 Life of Mine Average annual cash flow (pre-tax) (C$ M) 1,081 645 Average annual cash flow (after-tax) (C$ M) 965 487 Net Smelter Return ($/t ore milled) 41.92 28.14 Operating Cost ($/t ore milled) 9.84 9.84 Average Annual Metal
Slide 16: Economic Throughout the Commodity Cycle
ECONOMIC THROUGHOUT THE COMMODITY CYCLE Copper Price ($US) $2.50 $3.00 $3.35 $4.00 $4.50 $5.00 $5.50 NPV 8% (C$M) $654 $1,209 $1,597 $2,309 $2,857 $3,405 $3,952 $1,200 IRR % 11.6% 14.4% 16.1% 19.1% 21.2% 23.3% 25.2% Payback (yrs) 4.8 3.9 3.5 3.0 2.8 2.6 2.4 NPV 8% (C$M) $1,028 $1,581 $1,965 $2,677 $
Slide 17: Preliminary Economic Assessment – June 2021
PRELIMINARY ECONOMIC ASSESSMENT – JUNE 2021 PROJECTED CAPITAL COSTS PROCESS PLANT & INFRASTRUCTURE $ Millions Project Directs (including freight) $1,777 Project Indirects $390 Contingency $412 Subtotal Process Plant & Infrastructure $2,579 MINE COSTS Mine Equipment $409 Mine Preproduction $211 Subto
Slide 18: Low Cash Costs
LOW CASH COSTS • C1 cash costs of negative $1.13/lb copper produced (net of by-products) • Cash costs one of the lowest of any project being developed Note: Based on Casino 2021 PEA. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 18
Slide 19: Second Phase Development
SECOND PHASE DEVELOPMENT Phase I Phase I + II Development Development Sustaining Capital $719 million $1,808 million Total LOM Capital $3.97 billion $5.01 billion LOM pre-tax free cash flow $13.0 billion $17.2 billion LOM after-tax free cash flow $9.0 billion $12.0 billion Total mineralized material
Slide 20: Enterprise Value/Project NPV Benchmarking
ENTERPRISE VALUE/PROJECT NPV (STUDY) BENCHMARKING ▪ WRN trades at 0.12x NPV, a significant discount to its peers ▪ Undervalued against peers, trading at low end of peer valuation 2.31x Feasibility Pre-Feasibility 0.70x 0.66x 0.60x PEA 0.49x 0.46x WRN 0.42x 0.33x 0.31x 0.20x 0.19x 0.15x 0.12x 0.10x 0
Slide 21: Enterprise Value/Copper Equivalent Resource Benchmarking
Sandfire Res. Am. ¢20.4 (Black Butte) Marimaca ¢18.0 (Marimaca) Filo Mining ¢11.4 (Filo del Sol) Trilogy Metals ¢6.5 (Arctic) TSX : WRN I NYSE AMERICAN : WRN Nevada Copper ¢6.2 (Pumpkin Hollow) Kutcho Copper (Kutcho) ¢3.6 Source: RBC, Bloomberg, S&P Capital IQ and company disclosure. SolGold ¢2.9 (C
Slide 22: Casino Access Road Funding Secured
CASINO ACCESS ROAD FUNDING SECURED ▪ $130 million funding committed from Governments for the Casino Access Road ▪ Initial portion of road through EA process – expect construction this year ▪ Agreements with FN’s on key aspects of remaining road reached ▪ Construction bids out for tender, expected to
Slide 23: Casino Infrastructure
CASINO INFRASTRUCTURE POWER • Power to be supplied by 3 gas turbine driven generators for a combined installed capacity of > 200 MW • LNG trucked from Ft. Nelson • MOU signed with Ferus Natural Gas Fuels Inc. (Ferus) to supply the fuel at Ft. Nelson • Ferus currently supplying Whitehorse power plant
Slide 24: 2021 Exploration and Drilling Program
2021 EXPLORATION AND DRILLING PROGRAM Program developed and executed in partnership with Rio Tinto ▪ Exploration: ~5,000 m in 12 holes on the Casino Deposit and targets within Canadian Creek property ▪ Metallurgical drilling to test amenability of the mineralization to mineral processing ▪ Geotechni
Slide 25: Located in the Right Place
western COPPER AND GOLD = LOCATED IN THE RIGHT PLACE
Slide 26: Yukon – A Storied and Modern Record of Mining
YUKON – A STORIED AND MODERN RECORD OF MINING TIER 1 JURISDICTION ✓ Mining territory in Canada STRONG GOVERNMENT SUPPORT ✓ Funding for marketing and access road STRAIGHTFORWARD PERMITTING ✓ Single assessment agency ✓ Several initiatives underway to streamline processes ACTIVE MINING DISTRICT ✓ 3 min
Slide 27: 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 of practices in protecting the standards and building long term cultural values environment value ✓ Ongoing Engagement with Local ✓ Acce
Slide 28: Key Asset in an Emerging New Gold District
KEY ASSET IN AN EMERGING NEW GOLD DISTRICT ✓ Major miners in area – Rio Tinto, Newmont, Agnico-Eagle, Kinross, and others ✓ ~ 30 million ounces of gold in district* ✓ Significant exploration upside WHITE GOLD ✓ Government commitment to fund access to area ✓ 2 Projects in permitting ✓ Community and F
Slide 29: Investment Highlights and Path Forward
INVESTMENT HIGHLIGHTS AND PATH FORWARD CASINO PROJECT ALREADY TICKS MANY OF THE BOXES: ✓ Significant copper and gold project ✓ Yukon – an emerging mining district ✓ Clear path to unlock value STEADY PROGRESS: ✓ 2018: Tailings alternatives study completed ✓ 2019: Infill drilling campaign completed ✓
Slide 30: Analyst Coverage
ANALYST COVERAGE CORMARK SECURITIES ROTH CAPITAL PARTNERS H.C. WAINWRIGHT & CO. Stefan Ioannou Matthew Farwell Heiko F. Ihle, CFA Tel: (416) 943-4222 Tel: (949) 720-7108 Tel: (212) 356 - 0500 TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 30
Slide 31: Appendix
& western COPPER AND GOLD
Slide 32: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Paul West-Sells, PhD Varun Prasad, CPA, CGA Cameron Brown, P.Eng Ken Williamson, B.A.Sc., MBA, P.Eng President & CEO CFO VP Engineering Director & Interim Chairman Metallurgical Engineer with significant Professional Accountant, with extensive Formerl
Slide 33: Board of Directors
BOARD OF DIRECTORS Ken WIlliamson, Former investment banker. Mr. Williamson has served on the boards of Eicon Technology Corporation, Glamis B.A.Sc., MBA, P.Eng Gold Ltd., BioteQ Environmental Technologies Inc., Uranium One Inc., BlackRock Ventures Inc., Quadra FNX Director & Interim Chair Mining Lt
Slide 34: Operating Cost
OPERATING COST ($/tonne) MILLING Milling $5.72 OPERATION Mining $3.66 General & Administrative $0.45 Total $9.84 ($/tonne) HEAP LEACH Heap Leach Operation $1.30 OPERATION ADR/SART $4.67 Total $5.98 Note: Based on Casino 2021 PEA. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Ca
Slide 35: ANA and Casino B
ANA AND CASINO B Note: See “Notes” in Appendix TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 35
Slide 36: 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 37: 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 Molybdenum 0.05 % Iron 0.8 % Iron 26 % Sulphur 37.9 % Sulphur 36 % Arsenic 1659 g/t Arsenic 2
Slide 38: 2020 Resource
2020 RESOURCE Mill Resource ($5.70/t NSR cut-off) Tonnes Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class M (%) (g/t) (%) (g/t) (%) (M lb) (M oz) (M lb) (M oz) Measured 145.3 0.31 0.40 0.025 2.1 0.74 986 1.9 80.6 9.8 Indicated 2,028.0 0.14 0.17 0.016 1.4 0.33 6,448 10.9 731.0 90.4 M+I 2,17
Slide 39: 2020 Resource
2020 RESOURCE Heap Leach Resource ($5.46/t NSR cut-off) Tonnes Copper Gold Silver AuEq Copper Gold Silver Class M (%) (g/t) (g/t) (g/t) (M lb) (M oz) (M oz) Measured 37.2 0.05 0.45 2.8 0.48 39.3 0.5 3.3 Indicated 180.2 0.03 0.21 1.7 0.23 127.2 1.2 10.0 M+I 217.4 0.03 0.25 1.9 0.27 166.5 1.8 13.3 Inf
Slide 40: Notes
NOTES “Casino PEA”: • Technical report entitled “Casino Project, Form 43-101F1 Technical Report Preliminary Economic Assessment, Yukon, Canada" dated June 22, 2021, a copy of which is available on the Company's website at www.westerncopperandgold.com. • Prepared by Prepared by: Daniel Roth, PE, P.En
Slide 41: Notes
NOTES Other technical information in this presentation: • Technical information regarding the Casino Project contained in this presentation is based on the Casino 2021 PEA prepared by or under the supervision of the Qualified Persons noted previously. • Copper equivalent calculations in this present
Slide 42: Contact: westerncopperandgold.com
WWW.WESTERNCOPPERANDGOLD.COM INFO@WESTERNCOPPERANDGOLD.COM 604 684 9497
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