How Northisle Copper & Gold Plans To Double Gold Production And Cut CAPEX Aggressively Via Smart Phasing Strategy

• NorthIsle Copper & Gold has one of the largest copper-gold porphyries in British Columbia not owned by a major
• Focusing on a phased development approach starting with higher-margin resources to improve project economics
• Recent $10M financing from institutional investors to fund growth and exploration in 2025
• Political and infrastructure tailwinds in British Columbia supporting development of critical mineral projects
• Upcoming preliminary economic assessment in Q1 2025 a key near-term catalyst

NorthIsle Copper & Gold (TSX-V: NCX) is advancing one of the largest copper-gold porphyry deposits in British Columbia that is not currently owned by a major mining company. With a substantial resource base, a phased development approach focused on maximizing margins, and strong institutional backing, NorthIsle is well-positioned to unlock the value of its flagship North Island Project. 

A Large-Scale Copper-Gold Porphyry

The 100%-owned North Island Project hosts one of the largest undeveloped copper-gold porphyry systems in BC. Based on the 2021 PEA, the project contains 3.1 billion pounds of copper and 6.9 million ounces of gold in the Measured and Indicated categories, plus an additional 0.6 billion pounds of copper and 1.5 million ounces of gold in the Inferred category. Importantly, the resource remains open for expansion both laterally and at depth, suggesting long-term growth potential.

Interview with CEO Sam Lee

A Phased Development Approach 

NorthIsle is taking a phased development approach to maximize project economics and returns while reducing development risk and initial capital requirements. Their goal is to focus on the higher-margin resources first and break up the larger project into an initial phase with lower capital intensity and higher returns. Thus following the successful model used by Artemis Gold at their Blackwater project.

The initial development phase will focus on the Northwest Expo and Red Dog zones, which host higher-grade mineralization with a more favorable gold-copper ratio compared to the overall resource. Based on the recently updated resource estimate, these zones contain approximately 70-100 million tonnes grading 0.50-0.55% copper-equivalent, with a higher proportion of gold to copper (70:30). By prioritizing these higher-margin resources, NorthIsle aims to significantly enhance project economics.

Strong Institutional Backing 

NorthIsle recently closed a ~$10 million financing with participation from two leading resource-focused institutional investors. The financing proceeds will fund ongoing exploration and development activities at the North Island Project.

Having supportive institutional shareholders is a key differentiator for NorthIsle. These knowledgeable investors understand the fundamental value and potential of the North Island Project and are aligned with management's vision to systematically de-risk and advance the asset.

We just closed a $10 million straight Equity offering with effectively two multi-billion dollar institutions one based out of the US and one based out of Canada. They’re very supportive of what we're doing, they love our project.

Positioned for Success

The North Island Project is located in British Columbia, Canada - a top-tier mining jurisdiction with a long history of successful mine development. Importantly, both the provincial and federal governments are increasingly supportive of advancing copper and gold projects given their critical role in the clean energy transition.

Additionally, the project benefits from over $100 million of existing infrastructure, including paved roads, a deep-water port, and hydroelectric power. This established infrastructure significantly reduces development risk and capital intensity.

Upcoming Catalysts 

NorthIsle is working towards completing an updated Preliminary Economic Assessment (PEA) in Q1 2025. The PEA will incorporate the higher-grade resources at Northwest Expo and Red Dog, as well as recent exploration success, into an updated mining plan and economic study.

The company is targeting a meaningful increase in the net present value and internal rate of return compared to the 2021 PEA, while also reducing the initial capital requirements. CEO Sam Lee elaborated on the objectives:

Two years ago we had a very large PEA that defined about $ 1.1 billion npv at $1.4 billion capex project that saw about 100 million pounds of copper production a year and 100,000 ounces of gold production a year... we went back and started exploring for higher margin rock so that it could allow us to phase into the much larger project…we're looking at 40,000 tons per day instead of an 80 or 70,000 tons per day project. We're looking at doubling our gold production as part of phase one.

The updated PEA will be a key catalyst for NorthIsle and help quantify the economic benefits of the phased development approach.

The Investment Thesis for NorthIsle Copper & Gold:

• Exposure to a large, high-quality copper-gold asset in a top-tier jurisdiction
• Focused on maximizing margins through a phased development approach
• Backed by supportive institutional shareholders
• Attractive exposure to rising copper and gold prices
• Proven management team with a history of value creation
• Trades at a discount to peers based on copper-equivalent resource size
• Near-term catalysts include an updated PEA in Q1 2025

Macro Thematic Analysis: 

The global shift towards decarbonization is a key demand driver, with copper and battery metals playing a critical role in the clean energy transition.

On the supply side, a lack of new discoveries, declining grades, and ongoing operational challenges are constraining production growth. This is particularly acute in stable jurisdictions like Canada, where there are very few copper projects of scale that are construction-ready.

This macro backdrop of rising demand and constrained supply growth is highly favorable for projects like NorthIsle's North Island. As one of the only independently-owned, development-stage copper assets of scale in Canada, NorthIsle is well-positioned to benefit from this macro thematic in the coming years.