Attractive Large-Scale Canadian Copper-Gold Porphyry Project

A New Era for Copper & Gold Investment

As the global economy pivots toward electrification and renewable energy, copper has emerged as a cornerstone of the green transition. Yet, the scarcity of high-return, low-risk copper development projects is a bottleneck. Enter Northisle Copper & Gold Inc., whose North Island Project in British Columbia offers a unique combination of world-class economics, low capital intensity, substantial gold leverage, and district-scale upside. With its 2025 PEA unveiling a transformative opportunity, Northisle is increasingly positioned as a premier developer in the copper-gold space.

PEA Highlights: Industry-Leading Economics

The recently released 2025 Preliminary Economic Assessment (PEA), effective February 12 and filed April 4, 2025, outlines robust project economics:

• After-tax NPV (7%): C$2.0 billion (US$1.5 billion)
• After-tax IRR: 29%
• Payback period: 1.9 years
• Mine life: 29 years
• NPV/Initial Capex ratio: 1.7x (3.3x at spot prices)

With initial capex of C$1.1 billion (US$847 million) and life-of-mine production averaging 157M lbs Cu Eq. or 307K oz Au Eq. annually, the project stands out for its capital efficiency and scale​.

Northisle’s PEA presents a phased approach that maximizes cash flow and minimizes upfront risk. Phase 1—a 40,000 tpd gold-rich operation—delivers 70% margins, with 200,000 oz Au and 48M lbs Cu produced annually in the first five years​. This phase alone generates C$2 billion in operating cash flow, fully funding the Phase 2 expansion to 80,000 tpd.

Capital Intensity & Payback: A Rare Advantage

In a sector where capex inflation and permitting challenges plague major projects, North Island’s capital intensity is in the lowest quartile globally. The NPV/capex ratio of 1.7 is significantly higher than most copper-gold peers (typically 0.5–1.0). At spot prices, the ratio improves to 3.3x, placing North Island among the most developable copper assets globally​.

The payback period of under 2 years is exceptionally attractive, providing investors early returns and significant downside protection—even in lower price environments.

Dual Metal Exposure: Leveraged to Copper & Gold

North Island offers diversified metal exposure. The project is structured with:

• Phase 1 weighted towards gold (68% of revenue)
• Life-of-mine revenue split of 48% copper, 45% gold, 7% molybdenum

This strategic metal mix means the project benefits from copper’s structural supply deficit while providing gold’s price resilience and hedge value in volatile markets​. Notably, AISC in Phase 1 is a remarkable US$763/oz Au Eq or US$1.49/lb Cu Eq, firmly in the first cost quartile globally​.

Fully Funded Exploration

In 2025, Northisle is executing a C$7 million fully funded exploration program focused on its higher-grade northern corridor—especially around the Goodspeed discovery. This area delivered 16 holes of strong mineralization, indicating potential for a standalone, high-margin project​.

According to President & CEO Sam Lee, if ongoing drilling confirms continuity, the northern corridor could become an independent development phase, further reducing capital intensity and accelerating cash flows.

District-Scale Potential: A Magnet for Majors

Northisle controls a 35-kilometer long land package in a prolific porphyry belt, anchored by the now-closed BHP-operated Island Copper Mine. The current PEA only includes 753 Mt of 905 Mt indicated and 214 Mt inferred resource, leaving substantial upside from:

• West Goodspeed discovery (not in current resource)
• Pemberton Hills—a 6.5 x 1.5 km lithocap with >C$5M in historical exploration
• Red Dog and Northwest Expo—newly modeled for resource growth​

This district-scale positioning is critical. As CEO Lee notes, “Companies like BHP aren’t just interested in single assets—they want district-scale opportunities.” Northisle offers precisely that.

ESG Profile: Designed for a Sustainable Future

The North Island Project aligns with modern ESG expectations:

• Low carbon intensity for an open pit copper project in Canada
• Electrification of infrastructure prioritized in design
• Engagement with Indigenous communities—Quatsino, Tlatlasikwala, and Kwakiutl—proactively built into project timeline and permitting strategy​

Environmental and social permitting processes are being advanced alongside engineering and exploration activities, ensuring project timelines remain aligned with stakeholder expectations.

De-Risked & Deliverable Path to Production

Northisle’s methodical approach is a model of de-risking:

1. Strong geological confidence: NI 43-101 resource estimate prepared by Sue Bird, P.Eng., with robust QA/QC and data validation procedures​.
2. Independent engineering: Ausenco and Moose Mountain Technical Services bring decades of experience in porphyry project development.
3. No fatal flaws identified: Permitting, infrastructure access, and metallurgy all support feasibility-level advancement.
4. Strategic optionality: Northisle retains 100% of the core project, while partnerships are being considered only for Pemberton Hills, minimizing dilution risk​.

Management & Share Structure: Aligned with Investors

Northisle is led by Sam Lee, a capital markets veteran and CFO Nicholas Van Dyk, who brings 20+ years of financial, indigenous, and corporate governance expertise​.

Ownership is insider-aligned (18% fully diluted), with institutional support from funds like Franklin Templeton. As of March 2025:

• Market cap: ~C$214M
• Shares outstanding: ~257M
• Cash: C$12.8M (post-2024 financing)
• No debt​

With an enterprise value well below its C$2.0B NPV, the company is massively undervalued on an EV/NPV basis.

Copper & Gold Macro Tailwinds

Copper: Electrification-Driven Deficit

With CRU and Wood Mackenzie forecasting structural copper deficits due to grid expansion, EV adoption, and renewable energy demand, North Island’s timing is ideal. Few advanced copper projects offer the same combination of scale, location, and low capex.

Gold: Hedging Against Instability

Gold remains a crucial portfolio hedge amid negative real rates, currency debasement, and geopolitical risk. North Island’s Phase 1 gold weighting provides rare downside protection within a copper development context.

Valuation & Re-Rating Potential

With a base case after-tax NPV of C$2.0B and current market capitalization of just C$214M, Northisle trades at a steep discount (~0.1x NAV). Comparable copper projects trade at 0.3x–0.6x NAV, implying significant re-rating potential as Northisle advances:

• Feasibility study initiation
• Northern corridor drill results
• Strategic partner announcement
• Pemberton Hills exploration results
• Environmental baseline and engagement milestones

High-Leverage, Low-Risk Copper-Gold Opportunity

Northisle’s North Island Project is not just another copper development—it’s a generational opportunity. With world-class economics, a phased development model, low capital intensity, and enormous exploration upside, it offers investors a rare combination of growth, margin, and security.

As the global mining sector searches for scalable, ESG-aligned copper supply in safe jurisdictions, Northisle stands out as one of the most developable copper-gold projects in the world. For investors seeking leverage to the energy transition, backed by gold-rich near-term cash flow, Northisle Copper and Gold Inc. is a compelling addition to any portfolio.