Northisle Copper And Gold Inc. · TSXV:NCX
Northisle Copper And Gold — Investor Presentation (January 2022)
37 slides from Northisle Copper And Gold's investor presentation, Jan 13, 2022
Slide 1: NorthIsle Company Overview
COPPER AND GOLD INC. NorthIsle Company Overview The Leading Sustainable Resource Opportunity TSX-V: NCX Jan 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 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 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 - - Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 CAPITAL STRUCTURE SHAREHOLDER DISTRIBUTION Retail Shares Outstanding 181.
Slide 6: NorthIsle is Undervalued
NorthIsle is Undervalued Significant Resource at an Attractive Valuation Enterprise Value / M+I Resources & M+I Resource $1,095 $542 Enterprise Value/M+I Resource (US$/t CuEq) 42.8 $472 M+I Resources (Mt CuEq) $390 7.0 $281 5.4 $234 $157 2.7 $89 2.5 $73 $58 1.9 2.1 2.0 1.6 $54 $50 $41 1.1 0.9 1.1 1.
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 Director Adv
Slide 8: Steps Towards Sustainability
Steps Towards Sustainability Contribute to the Reduction in Carbon Emissions 1 • Access to clean BC power makes a low carbon emission mine conceivable • Copper is driving the green energy revolution and is critical for expanded electrification infrastructure Connecting with our Communities • Commitm
Slide 9: North Island – Exceptional Infrastructure
North Island – Exceptional Infrastructure Historical logging and mining activity has left a legacy of roads, power and ports 10km 100% NCX Cape Scott Wind Farm Goodspeed North West Red Dog Target Expo Target Deposit Hushamu Deposit Macintosh Target Port Hardy Island Copper Pit (former BHP mine) Port
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 Can be tested with a minimal number of drill holes 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 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 Feb 2, 20212 NPV5% C$1,683m C$2,116m NPV8% C$1,059m C$1,396m IRR 19.0% 22.3% Payback 3.9
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 $3.2 1 Filo Josemaria Copper Fox NorthIsle Northern Dynasty Adventus Copperbank G
Slide 16: Competitive Operating Costs
Competitive Operating Costs Potential for first quartile AISC Total Site Operating Costs North Island will be a low-cost producer of highly marketable concentrate products Area C$/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 Surface expression at new targets consistent with existing NW Expo NW Expo Goodspeed deposits Red Dog PEA Pit Outline Goodspeed Hu
Slide 18: Staged Exploration Plan
Staged Exploration Plan Multiple targets with extensive surface porphyry alteration consistent with existing deposits Red Dog Hushamu Macintosh Northwest Pemberton Goodspeed 55mt Indicated; 473mt Indicated; Recent logging roads Expo Hills Recent mapping has 3mt inferred 414mt inferred have exposed a
Slide 19: Island Copper Mineralization
Island Copper Mineralization 1995 Pit Outline and alteration map informs structural understanding CMG – Chlorite Magnetite Pyrophyllite ± Dumortierite Biotite – magnetite Quartz – amphibole – magnetite Quartz – Sericite ± chlorite Pyrophyllite ± Dumortierite TSXV: NCX Source: José Péreilló et al., E
Slide 20: Red Dog – Expansion Potential
Red Dog – Expansion Potential High-grade deposit with significant expansion opportunities o 2021 drilling at Red Location of 2021 Dog has been drill targets completed at 2 targets with assays NW Expo Target pending Red Dog Starter pit potential Strip ratio of 0.14:1 o Drilling targeted at an EC228 j
Slide 21: Hushamu – Expansion Potential
Hushamu – Expansion Potential Significant Opportunity for Expansion o Hushumu deposit remains open to the southeast o 2021 drilling targeted at testing the southeast extension o Infill drilling planned for 2022 in order to improve resource confidence in support of future PFS o Macintosh target in Ma
Slide 22: Macintosh – New Discovery Potential
Macintosh – New Discovery Potential Recently Exposed Area of High-Level Porphyry Alteration High level white-orange porphyry alteration exposed by recent logging road over > 1.5km extent o New early-stage greenfield target not previously drill tested o Recent logging roads have exposed a large area
Slide 23: NW Expo – New Discovery Potential
NW Expo – New Discovery Potential High priority IP anomaly with encouraging historic drill results o Complex alteration system 2021 Drill Targets analogous to Island Copper Historic Hole EC228 (95m @ 1.0g/t Au, 0.17% Cu) o Large region of intense Outline of approximate area of SCP alteration with si
Slide 24: 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 comprised variably of kaolinite, dickite, smectite, pyrite and silica typically found above buried porphyry
Slide 25: 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 25
Slide 26: 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-feldspar-
Slide 27: Milestones and Next Steps
Milestones and Next Steps 2021 2022 2023 2024+ ✓ 2021 PEA Results • Target commencement of • Target commencement of • Target completion of North announced including pre-feasibility study feasibility study for the North Island Feasibility Study updated recoveries and covering the Hushamu and Island P
Slide 28: 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 28
Slide 29: Appendix
_~ NORTHISLE COPPER AND GOLD INC. APPENDIX TSXV: NCX 29
Slide 30: 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 31: 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 32: …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 33: 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 34: 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 35: 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 36: Pemberton Hills
Pemberton Hills Lithocap is interpreted to dip towards Holberg Inlet Pemberton Hills Looking South towards Holberg Inlet Approximate Dip of Lithocap Hypothetical direction to source of hydrothermal fluids TSXV: NCX 36
Slide 37: Pemberton Hills
Pemberton Hills Clay mineralogy, chargeability and pyrite abundance are all important indicators for fluid flow source in a porphyry system TSXV: NCX
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