Northisle Copper And Gold Inc. · TSXV:NCX
Northisle Copper And Gold — Investor Presentation (June 2021)
35 slides from Northisle Copper And Gold's investor presentation, June 2021
Slide 1: Northisle Company Overview
COPPER AND GOLD INC. Northisle Company Overview The Leading Sustainable Resource Opportunity TSX-V: NCX JUNE 2021 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 Investment Highlights
Northisle Investment Highlights Superior economics with significant exposure to Cu, Au, Mo + Re Robust ‒ Long mine life of 22 years Preliminary ‒ Average annual production of 156mlbs CuEq. over LOM Economic ‒ Attractive economics with C$1.1 billion After-tax NPV (8%) and 19% After-tax IRR Assessme
Slide 4: The World Needs More Copper
The World Needs More Copper Looming copper market deficit Copper Inventory Forecasts (000 tonnes)1 • Shutdowns of major copper-producing countries such as Peru 800 Global Balance at 9k Global Balance at GS Forecast and Chile dampened global mine supply 400 • Tightness in the physical market with exc
Slide 5: 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 6: 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 7: …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 8: Capital Markets Profile
Capital Markets Profile SHARE PRICE PERFORMANCE $0.40 1.0 0.9 0.8 Share Price (C$) $0.30 0.7 0.6 $0.20 0.5 0.4 0.3 $0.10 0.2 0.1 $0.00 0.0 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Source: S&P Capital IQ CAPITAL STRUCTURE SHAREHOLDER DISTRIBUTION Inst
Slide 9: Industry Leading Leadership
Industry Leading Leadership ✓ PROVEN TRACK RECORD ✓ OVER 200 YEARS ✓ A SUSTAINABLE APPROACH in finding and developing collective mining and to mineral discovery and project world class mines capital markets experience development Dale Corman, P.Eng Chairman1 Sam Lee, CFA President & CEO1, Director D
Slide 10: North Island – Project Highlights
North Island – Project Highlights Long Mine Life: 22 years 2021 PEA Right-Sized Project: LOM avg. production of 156mm lbs CuEq; C$1.4 billion capex; Highlights1 after-tax NPV8 of C$1.1billion and after-tax IRR of 19%; 3.9 year payback Low-Cost Operation: LOM AISC of C$2.14/lb CuEq (C$2.01/lb i
Slide 11: North Island – District Scale Potential
North Island – District Scale Potential 100% owner a 50km porphyry district 10km 100% NCX Cape Scott Wind Farm North West Red Dog Hushamu Expo Target Deposit Deposit Port Hardy Island Copper Pit (former BHP mine) Port Hardy Japan 7,200km Coal Harbour Victoria Pemberton ~24 yr LOM production >500km H
Slide 12: North Island – Project Benchmarking
North Island – Project Benchmarking Grades compare well with current operating mines in British Columbia METAL VALUE DISTRIBUTION M&I RESOURCE GRADE FOR CURRENT BC OPERATING 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 Mount Mi
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 Summary Economics
2021 PEA Summary Economics Robust Economics with Significant Upside to 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 Price2 NPV5% C$1,683m C$2,116m NPV8% C$1,059m C$1,396m IRR 19.0% 22.3% Payback 3.9 years
Slide 15: NorthIsle is Undervalued
NorthIsle is Undervalued Significant Resource at an Attractive Valuation Enterprise Value / M+I Resources & M+I Resource $667 $608 Enterprise Value/M+I Resource (US$/t CuEq) 47.9 M+I Resources (Mt CuEq) $269 $243 $231 $219 5.1 4.1 $100 $95 $83 2.6 $55 2.0 2.1 1.5 $39 $37 1.8 $28 1.1 $23 1.1 $19 $14
Slide 16: 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
Slide 17: 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 Can be tested with a minimal number of drill holes TSXV: NCX
Slide 18: Summary of Initial Capex
Summary of Initial Capex Capital efficient due to significant existing infrastructure CAPEX / THROUGHPUT (US$000/TPD) $94.3 $66.2 $55.9 $38.8 US$15k/t Cu Eq pa $24.4 $21.1 $20.5 $20.3 $19.6 $14.5 $14.4 $8.5 $3.2 Granite Creek Filo Kutcho Foran Northern Dynasty Surge Adventus NorthWest Western Copper
Slide 19: Competitive Operating Costs
Competitive Operating Costs Potential for first quartile AISC Total Site Operating Costs North Island will be a low-cost producer of highly marketable concentrate products Area C$/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 20: Sustainability at Our Core
Sustainability at Our Core Becoming Canada’s Leading Sustainable Resource Company for the Future 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 elec
Slide 21: Exploration Upside
Exploration Upside 33,000ha currently underexplored with less than 400 holes drilled Red Dog South: 1.2km x North Island Northwest Expo: 1.5km 0.8km high-level porphyry Hushamu: Deposit open for open IP anomaly, partially 300m to the southeast. Project tested with three holes all in alteration with
Slide 22: Pemberton Hills
Pemberton Hills High level alteration indicative of underlying copper porphyry deposit • 3.5km x 1.5km area of high-level silicification and advanced argillic alteration • Shallow historical hole ends in 0.14% Cu Area of high-level • Large IP target partially tested porphyry alteration: • 2021 drill
Slide 23: Red Dog Upside Potential
Red Dog Upside Potential North West Expo and Red Dog South Targets Location of 2021 drill targets Red Dog Starter pit potential Strip ratio of 0.14:1 TSXV: NCX 23
Slide 24: Hushamu Deposit Upside Potential
Hushamu Deposit Upside Potential Significant Opportunity for Expansion Deposit expansion to the southeast Converting supposed waste to mineralization Multi-year notice of work filed covering over 70 step-out and in- fill holes filed in Macintosh Target support of PFS TSXV: NCX 24
Slide 25: Next Steps
Next Steps 2021 2022 2023 2024+ • 2021 PEA Results • Target completion of pre- • Commencement of • Completion of North Island announced including feasibility study covering feasibility study for the North Feasibility Study updated recoveries and the Hushamu and Red Dog Island Project economics depos
Slide 26: Appendix
~ NORTHISLE COPPER AND GOLD INC. APPENDIX TSXV: NCX
Slide 27: 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 28: 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 and of decade they will account for around thanks to their rapidly declining c
Slide 29: 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 COVID-related supply Declining inventory levels Maturing global supply disruptions and head grades with a limited pipeline Key Demand Drivers Reflationary EV revolution New pol
Slide 30: Economics – Base Case
Economics – Base Case NorthIsle valuation attractive based on only the North Island Project Financial Parameters Production Parameters Development Capital C$m $1,442 Mine Life Years 22 Sustaining Capital C$m $197 Cu mlbpa 95.9 Site Operating Cost C$/t $9.81 Au kozpa 99.9 Avg. Ann. Revenue C$m $649 M
Slide 31: Conventional Flotation
Conventional Flotation North Island Project conceptual flowsheet based on conventional process Single grinding line consisting of a 40ft diameter SAG mill with 23MW drive and two 28ft diameter ball mills with 20MW drives Sub-aqueous co-disposal of mine waste and tailings in a single mine waste f
Slide 32: Red Dog South Target
Red Dog South Target Red Dog Alteration Map Current Resource High Level Alteration Indicates Buried Deposit at Depth TSXV: NCX 32
Slide 33: Management Team
Management Team Sam Lee President & CEO, Director Mr. Lee was appointed to the role of President & CEO of Northisle in October 2020. Over the past 20 years Mr. Lee has advised on some of the most prominent M&A, equity, and debt transactions in the international and Canadian global mining industry to
Slide 34: Board of Directors
Board of Directors Dale Corman Non-Executive Chairman Mr. Corman has over 40 years’ experience as a senior corporate officer of publicly listed companies in Canada and the United States, as well as extensive expertise in mineral and geothermal exploration and development, property evaluation and acq
Slide 35: Contact
COPPER AND GOLD INC. Suite 1200 – 1166 Alberni Street Vancouver, British Columbia V63 3Z3 Investor Inquiries: Nicholas Van Dyk, VP Corporate Development & Investor Relations +1.604.638.2515 Email: info@northisle.ca TSXV: NCX
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