Northisle Copper And Gold Inc. · TSXV:NCX
Northisle Copper And Gold — Investor Presentation (September 2022)
38 slides from Northisle Copper And Gold's investor presentation, September 2022
Slide 1: NorthIsle Company Overview
COPPER AND GOLD INC. NorthIsle Company Overview The Leading Sustainable Resource Opportunity TSX-V: NCX September 2022 1
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 Inventory Forecasts (000 tonnes)1 Looming copper market deficit Global Balance at 9k Global Balance at GS Forecast • Shutdowns of major copper-producing countries such as Peru 800 and Chile dampened global mine supply 400 • Tightness in the physical market with exc
Slide 5: Capital Markets Profile
Capital Markets Profile SHARE PRICE PERFORMANCE1 $0.60 6 $0.50 5 Volume (millions) Share Price (C$) $0.40 4 $0.30 3 $0.20 2 $0.10 1 - - Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 CAPITAL STRUCTURE SHAREHOLDER DISTRIBUTION Retail Shares Outstanding 199.
Slide 6: NorthIsle is Undervalued
NorthIsle is Undervalued Significant Resource at an Attractive Valuation Enterprise Value / M+I Resources & M+I Resource Enterprise Value/M+I Resource (US$/t CuEq) $613 $489 16.1 42.3 M+I Resources (Mt CuEq) $356 7.0 6.6 $236 5.7 $116 $99 3.1 2.7 $90 $84 $57 $55 $55 $45 2.2 $44 1.8 2.1 2.3 2.1 1.6 $
Slide 7: Industry Leading Leadership
Industry Leading Leadership ✓ PROVEN TRACK RECORD ✓ OVER 200 YEARS ✓ SUSTAINABLE APPROACH in finding and developing collective mining and to mineral discovery and project world class mines capital markets experience development Sam Lee, CFA President & CEO1, Dale Corman, P.Eng Chairman1,3,4 Director
Slide 8: Steps Towards Sustainability
Steps Towards Sustainability Contribute to the Reduction in Carbon Emissions • Access to clean BC power makes a low carbon emission mine conceivable 1 • Copper is driving the green energy revolution and is critical for expanded electrification infrastructure and innovation Connecting with our Commun
Slide 9: North Island – Exceptional Infrastructure
North Island – Exceptional Infrastructure Historical logging and mining activity has left a legacy of roads, power and ports TSXV: NCX 9
Slide 10: North Island – Project Benchmarking
North Island – Project Benchmarking Grades compare well with current operating mines in British Columbia Cu Eq. M&I RESOURCE GRADE FOR CURRENT BC OPERATING METAL VALUE DISTRIBUTION MINES1 (based on 2021 PEA recoveries) 0.55% 0.48% 0.41% 0.30% Copper 0.28% 62% 0.23% Gold 33% Molybdenum 5% Red Chris M
Slide 11: 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 expand TSXV: NCX 11
Slide 12: 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 TSXV: NCX 12
Slide 13: Summary – 2021 North Island PEA
Summary – 2021 North Island PEA PEA HIGHLIGHTS – BASE CASE1,2 ✓ 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 14: 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 15: Summary of Initial Capex
Summary of Initial Capex Capital efficient due to significant existing infrastructure CAPEX / THROUGHPUT (US$000/TPD) $94.3 $94.1 $55.9 $38.8 <US$15k/t Cu Eq pa $24.4 $21.7 $21.1 $20.5 $20.3 $19.9 $14.5 $14.4 $8.5 $4.6 $3.2 1 Kutcho Foran Western Copper Filo Josemaria NorthIsle Marimaca Granite Cree
Slide 16: Competitive Operating Costs
Competitive Operating Costs Potential for first quartile AISC Total Site Operating Costs North Island will be a low-cost producer of highly marketable concentrate products Area C$/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 17: Exploration Focus
Exploration Focus North Island is a camp-scale asset with multiple highly prospective porphyry systems Near-Deposit Targets for New Expansion Discoveries Red Dog Hushamu NW Expo Surface alteration expression of new targets consistent with existing deposits along major structural trend Goodspeed Maci
Slide 18: 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 18
Slide 19: NW Expo – New High Grade Gold-rich Cu Porphyry Zone
NW Expo – New High Grade Gold-rich Cu 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 east of
Slide 20: NW Expo – New Gold-rich Cu Porphyry Zone
NW Expo – New Gold-rich Cu Porphyry Zone Drilling in Zone 1 has defined an open volume with higher gold grades in a Cu Porphyry TSXV: NCX 20
Slide 21: Hushamu – Expansion Potential
Hushamu – Expansion Potential Significant Opportunity for Expansion, Improved Resource Grade and Tonnage o Hushamu deposit remains open in multiple directions and at depth o 2021 and 2022 drilling targeted in-fill to the southwest o 2021 and 2022 holes intercepted above-average grade in the Hushamu
Slide 22: Hushamu – High Grade Intercepts
Hushamu – High Grade Intercepts Drilling adjacent to fault zone provides opportunity to add tonnage and grade o Historical drilling near section 5613600N now interpreted to be in a lower grade fault or dike zone o Drilling adjacent on either side of this zone shows grades above cut-off of 2020 resou
Slide 23: Pemberton Hills – New Discovery Potential
Pemberton Hills – New Discovery Potential Buried Cu-Au-Mo porphyry target beneath an aerially extensive lithocap o 6.5km x 1.5km area of high- level advanced argillic alteration and silica cap Chargeability anomaly Source of comprised variably of hydrothermal kaolinite, dickite, smectite, fluids pyr
Slide 24: Pemberton Hills
Pemberton Hills Lithocap Dipping Southwest Dip Slope Dip Slope Pemberton Hills showing lithocap dipping southwest Dip Slope TSXV: NCX
Slide 25: 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
Slide 26: Pemberton Hills – New Discovery Potential
Pemberton Hills – New Discovery Potential Block faulting consistent with regional structures SE *Not to scale* NW Pemberton Hills Schematic Cross-section showing Hypothesized dip and faulting of Lithocap TSXV: NCX 26
Slide 27: 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- magnetit
Slide 28: Near Term Catalysts
Near Term Catalysts Northwest Expo Gold-Rich Zone 1 Drilling Northwest Expo Gold-Rich Zone 1 Resource Hushamu In-fill Drilling Targeting Higher Grade Target Definition via Surface Exploration (mapping, geophysics) at Northwest Expo and Pemberton Northwest Expo and Hushamu Metallurgical Testing First
Slide 29: 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 Email: info@northisle.ca TSXV: NCX 29
Slide 30: Appendix
_~ NORTHISLE COPPER AND GOLD INC. APPENDIX TSXV: NCX 30
Slide 31: Green Demand to Benefit Copper
Green Demand to Benefit Copper Environmental & social-based policy shifts Copper Demand from Green Sectors (ktpa)2 underway Total Charging Points Demand • Metals are at the center of the next commodity super cycle Total EV Demand Total Wind Demand and green demand is poised to drive copper usage Tot
Slide 32: Cu Market Conditions Look Promising
Cu Market Conditions Look Promising…. Favourable macro conditions to support rising Improving Chinese Refined Copper Demand1 copper prices 15,000 • Unprecedented expansionary monetary and fiscal policies is China refined copper consumption 14,000 driving a strong stimulus-backed global recovery unde
Slide 33: …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 34: How Copper Fits a Greener Economy
How Copper Fits a Greener Economy1 Electric Vehicles Solar Panels Electric vehicles have more than 5 times Copper is critical for efficiency and the copper of ICE vehicles and by the end performance of photovoltaic panels of decade they will account for around and thanks to their rapidly 40% of the
Slide 35: 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 Declining inventory levels Maturing global supply disruptions and head grades with a limited pipeline Key Demand Drivers Reflationary EV revolution New poli
Slide 36: BC: Supportive Tier 1 Jurisdiction
BC: 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 resource-based indu
Slide 37: 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 3
Slide 38: Pemberton Hills
Pemberton Hills Clay mineralogy, chargeability and pyrite abundance are all important indicators for fluid flow source in a porphyry system TSXV: NCX
NorthIsle Copper and Gold — Investor Presentation (September 2022) on 6ix