Nine Mile Metals - Exploring VMS Copper Deposits in the World-Class Bathurst Mining Camp

• Nine Mile Metals is a VMS exploration company focused on the Bathurst Mining Camp in New Brunswick, Canada, with four priority projects
• Management and insiders own ~34% of shares; the company recently raised $1.5M in flow-through funding to support 2024 exploration
• Drill results from the Wedge deposit released in May 2024 show significant copper intercepts, e.g. 1.65% CuEq over 40m
• Plans to further delineate the Wedge deposit and drill test 11 other high-priority geophysical targets across its properties in 2024
• Low-cost drilling and track-mounted rigs enable cost-effective, environmentally-friendly exploration; catalysts will be ongoing drill result

About Nine Mile Metals

Junior mining company Nine Mile Metals (CSE:NINE) represents an attractive copper exploration play through its district-scale land position in New Brunswick, Canada's world-class Bathurst Mining Camp (BMC). The BMC hosts 45 volcanogenic massive sulfide (VMS) deposits, including the Brunswick No.12 mine, the world's largest underground zinc mine. However, only an estimated 30% of VMS deposits in the region have been discovered to date, highlighting the significant potential for discoveries using modern exploration techniques.

Nine Mile has consolidated a commanding land position across this highly prospective VMS district and identified 11 high-priority targets to date. Importantly, management has significant skin in the game, with insiders owning approximately 34% of the outstanding shares. The company is well-funded to aggressively explore its properties following recent flow-through raises totaling $1.5 million.

Interview with CEO & Director, Patrick Cruickshank

The Bathurst Mining Camp: A World-Class VMS District

The BMC represents a premier jurisdiction for VMS exploration and mining. VMS deposits in the BMC formed 470 million years ago during intense volcanic activity on the seafloor. Metal-rich hydrothermal fluids precipitated massive sulfide mineralization near volcanic vents, forming polymetallic (copper-lead-zinc-silver-gold) deposits.

Over 25 deposits containing more than 1 million tonnes have been delineated in the BMC. The Brunswick No.12 mine is the most famous, and it produced 335 million tonnes grading 8.7% zinc, 3.4% lead, 0.37% copper, and 102 g/t silver. However, the BMC remains underexplored, with only 30% of deposits discovered.

"The government and we (believe) that with new technology, with drone technology, new geophysics, that there's a ratio of discoveries coming because everything's hidden," explained Nine Mile CEO Patrick Cruickshank. "These are vertical deposits, hidden underground, with small footprint at the surface between 500 and 1,000m, but they can go down up to 2 miles. So they're very hard to find."

Nine Mile's Dominant Land Position & Target Pipeline

Nine Mile has built a dominant land position in the BMC totaling over 100 square kilometers across four project areas. In the eastern part of the camp, the company's flagship Nine Mile Brook project covers a massive, contiguous land package neighboring the Brunswick No.6 and No.12 mines. In the western part of the BMC, Nine Mile holds three projects - Canoe Landing Lake East, Canoe Landing Lake West, and the California Lake project.

Notably, the Canoe Landing Lake East and West projects flank the historical 33 million-tonne Canoe Landing Lake zinc-lead-copper-silver deposit on both sides. "We believe the deposit goes on to both our properties," stated Cruickshank.

Nine Mile has identified 11 high-priority VMS exploration targets across its properties using state-of-the-art geophysical techniques, artificial intelligence and machine learning algorithms to reprocess historical exploration datasets, and boots-on-the-ground fieldwork. These targets occur along key geological and geophysical trends in areas with minimal modern exploration.

"We have the correct advanced geophysical priority partner and the reprocessing filter system, and we've shown that with the new Wedge program and last year's California Lake program, we are finding new VMS," said Cruickshank.

The Wedge Mine: Proving Up a Historical Resource

Nine Mile's most advanced-stage project is the historical Wedge Mine, where the company reports drill results. The Wedge Mine operated briefly in the 1960s before being shut down due to a pillar collapse, leaving the deposit open for expansion.

Drilling by Nine Mile in 2024 has returned impressive copper-silver mineralization, including 1.65% copper equivalent (CuEq) over 40 meters, 1.98% CuEq over 15 meters, and 2.29% CuEq over 13 meters in drill hole WD-24-07. Importantly, mineralization remains open in both directions along strike and at depth.

"Our mandate on this one high-priority target (is to) prove that this footprint is much bigger and deeper," said Cruickshank. "The wedge mine itself, you start from ground zero, and it's got a lot of life in it. We're proving that now."

Nine Mile is taking a two-pronged approach at Wedge: 1) in-fill drilling to upgrade the historical resource to current standards, and 2) step-out drilling to expand the deposit footprint along strike and down-plunge. Upcoming catalysts include borehole electromagnetic survey results which will provide vectors for follow-up drilling, and an updated geological model incorporating 183 historical surface and underground drill holes.

Proof-of-Concept Success & Target-Rich Environment

Beyond Wedge, Nine Mile has a pipeline of 10 other high-priority VMS exploration targets identified across its properties. Proof-of-concept drilling at the California Lake project in 2022 hit visible VMS mineralization in 8 out of 11 holes, confirming the prospectivity of Nine Mile's methodology and land package.

A key upcoming catalyst is drilling the No.6 exploration target at California Lake in 2024, which management believes could represent the source of VMS mineralization intersected along trend in 2023. Overall, Nine Mile has no shortage of discovery opportunities in a target-rich environment.

The Advantages of New Brunswick

In addition to its geological prospectivity, New Brunswick confers several advantages from an exploration and development perspective. Drilling costs are very low compared to other jurisdictions at less than C$100/meter.

"These VMS deposits, you can get a lot of it," explained Cruickshank. "It's very economic to go down 100m, 200m, 300m and we use track-mounted drill rigs - environmentally friendly. You can go down ATV trails out in the camp in the bush, and you're not cutting down. The footprint is really small."

This combination of low exploration costs and a small environmental footprint ensures Nine Mile can rapidly and cost-effectively advance its project pipeline while maintaining strong ESG credentials.

Using cutting-edge AI and geophysical techniques, the company has identified 11 high-priority VMS targets across its 100-square-kilometer project portfolio. Nine Mile Metals controls a district-scale land package in the world-class Bathurst Mining Camp, which remains underexplored despite hosting 45 known VMS deposits. The company has identified 11 high-priority VMS targets across its 100-square-kilometer project portfolio using cutting-edge AI and geophysical techniques. Management is aligned with shareholders, and the company is fully funded for an aggressive 2023 exploration program. Ongoing drilling at the advanced-stage Wedge project demonstrates near-term resource growth potential, while a pipeline of 10 other targets offers significant discovery upside over time. Nine Mile is well positioned to create shareholder value through cost-effective exploration and discovery in a Tier 1 jurisdiction.

The Investment Thesis for Nine Mile Metals

• District-scale land position in a world-class VMS camp with a 'string-of-pearls' deposit model
• 100 sq km land package with 11 high-priority targets, including advanced-stage Wedge and California Lake
• Reprocessing of historical data using AI/ML combined with modern geophysics to generate targets
• Low-cost, environmentally-friendly drilling enables rapid advancement of pipeline
• Management alignment with insiders owning ~34%; well-funded for upcoming exploration
• Steady news flow with ongoing exploration; drill results from Wedge demonstrating expansion potential
• VMS model confers potential for multiple discoveries across the land package over time

For investors looking for exposure to an early-stage copper explorer in a Tier 1 jurisdiction, Nine Mile Metals offers a compelling investment thesis. With a dominant land position in an underexplored world-class VMS district, a pipeline of 11 high-quality targets, an aggressive exploration program funded for 2024, and a management team with significant skin in the game, Nine Mile is well-positioned to create shareholder value through discovery. Catalysts to watch include ongoing drill results from the Wedge and California Lake projects and geophysical results across the portfolio to refine and prioritize targets.

Macro Thematic Analysis

The global energy transition is driving unprecedented demand for copper, which is essential for electrification, renewable power generation, and electric vehicles. However, the copper industry faces a medium—to long-term structural supply deficit due to years of underinvestment in exploration and development, declining grades at existing mines, and increasingly challenging jurisdictions. As a result, there is a critical need for new copper discoveries in stable jurisdictions to meet growing demand.

"Copper is the new lithium in these batteries," said Patrick Cruickshank, CEO of Nine Mile Metals. "You need almost double the amount of copper than you do lithium in these batteries, and there's 156 pounds of copper wrapped up in a Tesla, in the motor and everywhere else."

Copper explorers like Nine Mile Metals are well-positioned to benefit from this macro backdrop. The Bathurst Mining Camp is a world-class VMS district with a deep history of copper production and significant discovery potential remaining. Nine Mile's dominant land position, modern exploration approach, and experienced management team make it a standout opportunity in the junior copper space.