NorthIsle Copper and Gold: An Undervalued Copper-Gold Opportunity in British Columbia

• NorthIsle Copper & Gold has an exciting copper-gold porphyry project in British Columbia with a PEA showing a $1.1 billion NPV, 19% IRR, and 600 million tons of resources.
• The company has raised over $20 million since 2020 to advance the project through exploration and studies. Key focus areas are the high-grade Northwest Expo zone and the large-scale Pemberton Hills target.
• The project benefits from nearby infrastructure like roads and power from the former BHP Island Copper mine. Location in Canada provides access to renewable hydropower.
• First Nations relationships and agreements are critical for permitting and development. Consent-based approach has helped expedite key permits.
• Long-term supportive shareholders see big upside as the project can help meet rising demand for copper driven by electrification and decarbonization. Focus is on value-adding exploration and strategic partnerships.

About NorthIsle Copper and Gold

NorthIsle Copper and Gold is a copper-gold exploration and development company focused on advancing its North Island Project in British Columbia, Canada. With over 1 billion pounds of copper and 1 million ounces of gold in indicated and inferred resources, NorthIsle’s flagship project already hosts substantial value, providing a solid base for further exploration and development.

NorthIsle Copper and Gold is led by President and CEO Sam Lee. The company has raised over $20 million since October 2020 to advance exploration at its North Island Project. The North Island Project is a large copper-gold porphyry system located on northern Vancouver Island in British Columbia. It benefits from excellent infrastructure, including nearby roads, power and deep sea ports.

The North Island Project currently hosts an indicated resource of 590 million tons grading 0.34% copper and 0.009 oz/ton gold. It also hosts an inferred resource of 350 million tons grading 0.29% copper and 0.008 oz/ton gold. This equates to 4 billion pounds of copper and 1 million ounces of gold. A 2021 Preliminary Economic Assessment outlined a 1.1 billion NPV and 19% after-tax IRR for the project.

Interview with Sam Lee, President & CEO of NorthIsle Copper and Gold

Exploring for Additional High-Grade Mineralization

While the North Island Project already hosts substantial mineralization, NorthIsle is focused on exploration to expand resources and improve grades. The company has identified several high-priority drill targets nearby that could significantly enhance project economics.

Northwest Expo is just 3 km from the current deposit and hosts copper-gold mineralization grading significantly higher than the average resource grades. Drilling in 2021 intercepted 75 meters grading 0.61% copper and 0.25 g/t gold. A 3,000 meter drill program is underway here aiming to delineate a starter pit with 2-3 times higher NSR values compared to the main deposit.

At Pemberton Hills, NorthIsle has outlined a 6.5 x 1.5 km lithocap, suggesting potential for a large underlying copper-gold porphyry system. With 14 identified drill targets, this area offers ‘blue sky’ potential for a major discovery. Phase 1 drilling is planned for 2023.

The company also sees exploration potential at the Goodspeed prospect located close to Northwest Expo. Overall, NorthIsle has budgeted $8 million towards drilling high-priority targets in 2023 as it looks to add higher grade mineralization.

De-Risking the Path Forward

Beyond exploration upside, NorthIsle has made strides towards de-risking the development path for the North Island Project. Securing social license is crucial before advancing the project, and NorthIsle has already signed agreements with its Indigenous partners. These agreements provide consent for exploration and contracting of permitting timelines.

NorthIsle has also initiated environmental baseline studies, while additional technical studies on the project will progress smoothly given its simple porphyry geology. The company is focused on creating a “starter pit” focused on higher grade mineralization that could be developed at lower capital intensity and higher returns initially.

Attractive Infrastructure and Location

The North Island Project benefits from proximity to roads, power and deep sea ports - all built during the previous 24 years of copper mining at the BHP Island Copper mine located just 25 km away. This gives the project a major advantage in terms of infrastructure access.

The project’s location also provides strategic appeal, with Japan identified as a potential destination for copper-gold concentrates. The close deep sea port provides convenient access to Asian markets at a time of increasing regional cooperation on critical mineral supply chains.

Undervalued Based on Existing Resources

NorthIsle’s existing project resources already underpin substantial fundamental value, especially at today’s strong copper prices. With the North Island Project PEA modelling a 19% IRR and $1.1 billion NPV based on $3.25/lb copper, the project’s value has likely increased considerably given current $4.00+/lb copper prices.

The company’s current $40 million market capitalization represents just 4% of this fundamental NPV value. Exploration success could quickly re-rate the stock towards a more appropriate valuation. The project also benefits from permitting progress and strategic infrastructure.

Insider Ownership and New Investors Signal Confidence

NorthIsle’s management and key investors have been accumulating shares, signaling their confidence in the value opportunity. CEO Sam Lee holds 5% of shares. Chairman Dale Corman (11.1%) and significant shareholder Michael Gentile (12.5%) both bought in at prices above the current share price.

New cornerstone investors include Donald Johnson (9.9%) and an undisclosed strategic investor (9.9%). With almost 40% insider ownership, interests are strongly aligned with shareholders.

Conclusion

With an advanced copper-gold project hosting over 1 billion pounds of copper and 1 million ounces of gold, NorthIsle Copper and Gold offers substantial fundamental value trading at just a fraction of its NPV potential. Ongoing exploration has strong potential to significantly enhance project value through delineation of higher grade starter pits.

Permitting progress and strategic infrastructure provide additional advantages as copper markets tighten. With strong insider ownership, NorthIsle presents an undervalued copper developer and explorer primed for re-rating as it advances the North Island Project. Risk-tolerant investors could see strong upside from current levels.