A Copper-Gold Producer in the Making - 100% owned North Island Project on Vancouver Island in British Columbia, Canada - NorthIsle Copper and Gold
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A Copper-Gold Producer
in the Making
100% owned North Island Project on
Vancouver Island in British Columbia, Canada
February 2018
Northisle Investment Case
Large 33,149 hectare project in British Columbia covering an entire porphyry copper belt
Preliminary Economic Evaluation of Hushamu-Red Dog Deposits shows robust economics:
CND$ 552 million after tax NPV 8% ;
After tax IRR 14.3%;
Potential to significantly improve economics by:
Using existing infrastructure at now closed BHP mine site
Improved metallurgical recoveries
Potential to recover Rhenium
Optimizing production rate
Expanding Hushamu resource
Excellent infrastructure
Adjacent to BHP’s Past Producing Island Copper Mine;
BC power grid and Deep Sea Loading Facility;
Road Access;
Multiple additional under-explored porphyry occurrences including Pemberton Hills and NW Expo;
• Freeport earning in on Pemberton Hills Target – drilling in 2018
Resource community that understands mining.
TSXV: NCX 2
Northisle Company Snapshot
Company Overview Capital Structure
(November 30, 2017)
Head Office Vancouver, Canada Listing TSXV – NCX
Project Hushamu located in Port Hardy, Canada Share 114.5 M shares
Market Cap. C$ 11.5 M
Ownership 100%
7.7 M options,
Options &
Stage PEA 5.9 M warrants avg price $0.16
Warrants
M&I: 2.1 B lbs Cu, 3.4 M oz Au & 66M lbs Mo
Resource
Inf: 0.6 B lbs Cu, 0.9M oz Au & 19M lbs Mo Cash C$ 450 K
Economics(1) NPV8% of C$ 550.4m and IRR 14.3% Debt None
Project Location 1 Year Share Price
Covers a 50km porphyry
belt
Two deposits and multiple
exploration targets
TSXV: NCX 3
1. Commodity prices used in the PEA are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 9/t Py con, US$:C$ 0.75x
Board of Directors
The right mix of exploration, engineering and finance…
40 years experience as a senior corporate officer of publicly listed companies.
Dale Corman Extensive expertise in mineral exploration & development, financing, property
B.Sc, P.Eng, Chairman evaluation and acquisition. Currently Executive Chairman of Western Copper and
Gold Corporation.
Jack McClintock 30 years experience in all facets of the mineral exploration business and
MBA, P.Eng Director, formerly Exploration Manager for BHP Billiton.
President and CEO
Over 10 years in the mining industry with a track record of significant value creation.
Martino De Ciccio Currently VP Strategy & Investor Relations at Endeavour Mining since 2015. Prior to
CFA, Director Endeavour, held the position of Strategy and Business Development Manager at La
Mancha Resources.
Chartered Accountant with over 30 years of experience in the accounting, corporate
David Douglas finance, and mining industries. He has participated in the sale or financing of over 30
CA, Director and CFO private and public enterprises with a combined value
of over $300 million.
Brandon Macdonald B.Sc., Over 20 years in the mining industry with experience in field geology, investment
MBA, Director banking, and company management.
20 years of financial and business experience, gained primarily in the mining and
resources sectors. Most recently served as CFRO for two junior mining companies
Larry Yau where he was heavily involved in raising capital and the successful construction of
CA, Director mines in North America. Previously was Manager, Corporate Development, at Placer
Dome Inc. until its acquisition by Barrick Gold Corp.
TSXV: NCX 4
History of Hushamu
Northisle has significantly improved the project since 2011
Consensus Investment Community perception in 2011 was Hushamu deposit too small
and lacked near surface, high-grade starter pit to be economic
Northisle’s work since 2011 has corrected this wrong perception by:
Re logging and properly interpretation of geology in 2011 showed deposit was open
in multiple direction
Drilling in 2012 through 2014 found extensions and increased tonnage of indicated
mineralization from 250 Mt to current indicated resource of 370 Mt
Acquired nearby Red Dog project in 2015 for initial starter pit. Red Dog deposit
grade higher by 50% than Hushamu and has a 0.15 to 1 strip ratio
Drilling in 2017 demonstrated:
That Hushamu deposit remains open for 300 m southeast of ultimate pit limit
used in PEA and deposit could be significantly larger
A previously supposed 300 m diameter, under drilled barren area in the
southern part of the Hushamu has significant sections of above cut-off grade
mineralization. This potentially could decrease the strip ratio and add to the
resource base
TSXV: NCX 5
Summary Economics
Base Case Robust Economics…
C$ 550.4m 14.3% 5.1 Years
NPV8% After-tax IRR After-tax Payback After-tax
After Tax Base Case Spot Price
NPV8% C$ 550.4m C $549.0
IRR 14.3% 14.3%
Payback 5.1 years 5.1 years
C1 Cash Cost(1) US$ 0.88/lb Cu C1 Cash Cost(1) US$ 542/oz
Capital Cost C$ 1,344m Sustaining Capital C$139.0m
The Preliminary Economic Assessment (“PEA”) is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would allow them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized.
TSXV: NCX 1. Commodity prices used in the PEA are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 86/t Py con, US$:C$ 0.75x 6
2. Spot prices US$ 3.12/lb Cu, US$ 1,333/oz Au, US$ 7.14/lb Mo, US$ 86/t Py con, US$:C$ 0.75x
Economics – Base Case
A material amount of metal production at a low-cost of production
Financial Parameters Production Parameters
Capital Cost C$ $1,344 Mine Life Years 22
Sustaining C$ $139 Cu M lb pa 82
Operation Cost per 79
C$M $8.66 Au Koz
Tonne
After-tax Net Revenue C$M $2,350 Mo M lb pa 3
After Tax NPV8%(1) C$M $550.4 Py Concentrate ktpa 0.64
0.88
After Tax IRR % 14.3% C1 Cash Costs US$/lb
Metal Prices
600
Cu US$/lb 3.10 Mining Inventory Mt
0.18%
Au US$/oz 1,300 Cu Grade %
0.24
Mo US$/oz $9.00 Au Grade %
0.008%
Py Concentrate US$/t $86 Mo Grade %
9%
Exchange Rate x 0.75 Py Grade %
TSXV: NCX 7
1. Commodity prices used in the PEA are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 9/t Py con, US$:C$ 0.75x
Opportunities to Improve Economics
Low-risk value enhancements likely to further improve economics
I. Improve gold recoveries through additional flotation metallurgical testing
(higher revenue per tonne)
II. Demonstrate potential for rhenium credits in the Mo concentrate through
metallurgical flotation testing (rhenium could contribute the same as Mo
revenue)
III. Using BHP pit located 30 km away for waste disposal via slurry pipeline (it
would both decrease initial capital and sustaining capital)
IV. Optimize production rate: if going to 85ktpa or 90ktpa throughput (further
economies of scale)
V. Brownfields expansion of Hushamu resource: the deposit is open to the
southeast (potentially expand the deposit by up to 300m)
VI. A previously supposed 300 metre diameter low grade to barren area in the
south of the deposit was found by 2017 drilling to have significant intervals
above cut-off grade (further decrease strip ratio)
TSXV: NCX 8
Comparable Projects IRR’s
Hushamu PEA compares favorable with other regional deposits
IRR
Cu Au Mo Expected IRR at NCX’s Project
Project After-
tax
US$/lb US$/oz US$/lb compares well with other North
American projects due to a
Northisle 14.3% $3.10 $1,300 $9.00
number of factors:
Seabridge 8% $3.45 $1,320 $15.00
− Low-strip ratio 0.72:1 with potential to
further reduce with exploration by
Shaft Creek 8% $3.25 $1,445 $14.64
converting barren and low-grade areas
Blackwater 9.3% na $1,300 na to the resource category
Ajax 11.1% $3.21 $1,200 na − Near brownfields development
Ann Maison 13.7% $3.00 na $11.00
opportunity with existing infrastructure
including ports, power, town and
Pumpkin
15.6% $3.15 $1,200 na
airport equals low execution risk and
Hollow significantly lower capital cost
Rose Mount 15.5% $3.00 na $11.00
− Local communities that understand
Casino 20.8% $2.85 $1,260 $7.00 and support mining
Average 12.9% $3.12 $1289 $11.27
TSXV: NCX
Compiled from the best of the Company’s knowledge as of August 2017 9
Comparable Resources at
Operating British Columbian Mines
Copper Gold Copper equivalent
% % %
0.4 0.35 0.6
0.35 0.3 0.5
0.3
0.25
0.4
0.25
0.2
0.2 0.3
Cu Eq%
g/t
%
0.15
0.15
0.2
0.1
0.1
0.05 0.1
0.05
0 0 0
Copper Mtn.
*Hushamu
Mt Polley
Gibraltar
Hucklberry
Mt Milligan
Copper Mtn.
*Hushamu
Copper Mtn.
*Hushamu
Mt Polley
Gibraltar
Mt Polley
Gibraltar
Hucklberry
Hucklberry
Mt Milligan
Mt Milligan
(Based on Cu Eq at $2.50, $1,100 Au, $14 Mo)
Comparable Operating Mines
Hushamu Deposit
TSXV: NCX Grades compare well with current operating mines in BC 10Simple and straight forward mining
Cross Section of Hushamu Power Supply via a new, 30 km
long 138 KV overhead line from the
existing BC Hydro sub-station near
Port Hardy
Process water supply from contact
water from pit & WSF and potable
water from wells
Concentrate receiving, storage, and
Cross Section of Red Dog loadout to ships at a facility to be
developed by a third party on the
site of former Island Copper marine
terminal. Approximate concentrate
haul distance is 27 km
Base case is for 55/45 LNG/diesel
fuel mixture for haulage fleet using
227 tonne trucks
TSXV: NCX 11Conventional floatation
Hushamu’s flowsheet will be a straight forward floatation
Single grinding line
consisting of a 40 ft.
diameter SAG mill with 23
MW drive, and two – 28 ft.
diameter ball mills with 20
MW drives
Sub-aqueous co-disposal
of mine waste and tailings
in a single waste storage
facility (WSF)
Bulk concentrate is
separated in to copper-
gold, molybdenum and
pyrite
LOM recoveries for copper
78%, gold 38% and moly
60%
TSXV: NCX 12Exploration Upside
It is still early stage in terms of exploration…
Expansion of Hushamu Resource
− Deposit open for 300m to southeast for major expansion
Hushamu − Previously supposed barren zone in poorly drilled southern part
Expansion determined by 2017 infill drilling to have long sections of
mineralization above cut-off grade. If confirmed will convert waste
area to mineralization
Multiple Additional targets for copper-gold porphyry
deposits including:
− Pemberton Hills: 3.5 by 1.5 high-level intense alteration zone with
New Deposit deepest hole ending in 0.14% copper
Discovery − Northwest Expo: 1.5 km open IP anomaly, partially tested with 3
holes all in copper – gold mineralization
− Red Dog South: 1.2 by 0.8km high-level porphyry alteration with
shallow holes showing increasing copper and gold with depth
TSXV: NCX 13Hushamu Resource Upside
1. Deposit Expansion to southeast
2. Converting supposed waste to mineralization
Previously assumed
barren zone, 2017
drilling shows above
Cross Section cut-off grade between
historical vertical
holes
Deposit
remains open
to the SE
TSXV: NCX 14
Deposit open to southeastPotential for New Discoveries
Deep Red Dog
Target
TSXV: NCX 15Freeport - McMoran Earn-in
Freeport can earn up to a 65% interest in the Pemberton
Hills target area by:
• Spending $4 million on exploration over 3 years to earn
49%;
• Upon earning its 49% interest, Freeport has a one time
option to increase its interest to 65% by spending a
further $20 million on the project over 4 years;
• Northisle is the operator in during the initial earn-in
period.
TSXV: NCX 16Pemberton Hills Targets
High level alteration indicative of underlying copper porphyry deposit
Area of high-level 3.5 by 1.5km area
porphyry alteration: of high-level Silicification
and Advanced Argillic
Alteration
Open IP
Deep hole ends in
Silicification Anomaly 0.14% Cu
Silicification
Untested by drilling
Small portion surveyed by
IP is open to South
Hole ended in
0.14% copper
TSXV: NCX 17North West Expo Targets
0.12%Cu &
0.09gpt Au / 176m
Mineralized drill
hole
0.16% Cu & 0.14gpt Au / 61m
Non mineralized or
abandoned hole
Slide
Untested IP Zone
Anomaly >15mv/v
Hole
abandoned in
Overburden Historical Red
Dog Resource
(open to NW)
0 Km Scale
2 Km
TSXV: NCX 18
Soil and rock sampling indicates Red Dog zone continues to IP anomalyDeep Red Dog Target
Current
Resource
High Level
Alteration
Indicates Buried
Deposit at Depth
TSXV: NCX 19
Red Dog Alteration MapCautionary Disclaimer Regarding Forward-Looking Statements and Information
Certain of the statements and information in this press release constitute “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information”
within the meaning of applicable Canadian securities laws. Forward-looking statements and information generally
express predictions, expectations, beliefs, plans, projections, or assumptions of future events or performance and do
not constitute historical fact. Forward-looking statements and information tend to include words such as “may,”
“expects,” “anticipates,” “believes,” “targets,” “forecasts,” “schedules,” “goals,” “budgets,” or similar terminology.
Forward-looking statements and information herein include, but are not limited to, statements with respect to the
completion of the Proposed Arrangement and the expected structure thereof; anticipated shareholder, court and
regulatory approvals; and the expected timing of closing of the Arrangement. All forward-looking statements and
information are based on NorthIsle’s or its consultants' current beliefs as well as various assumptions made by and
information currently available to them. These assumptions include, without limitation that shareholder and court
approvals to the Proposed Arrangement will be obtained in a timely manner, and that regulatory approvals will be
available on acceptable terms. Although management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect. Forward-looking statements and information are
inherently subject to significant business, economic, and competitive uncertainties and contingencies and are
subject to important risk factors and uncertainties, both known and unknown, that are beyond NorthIsle’s ability to
control or predict. Actual results and future events could differ materially from those anticipated in forward-looking
statements and information. Examples of potential risks are set forth in Northisle's annual report most recently filed
with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators as of the date of
this press release. Accordingly, readers should not place undue reliance on forward-looking statements or
information. NorthIsle expressly disclaims any intention or obligation to update or revise any forward-looking
statements and information whether as a result of new information, future events or otherwise, except as otherwise
required by applicable securities legislation.
John McClintock, P Eng. is the Qualified person responsible for the technical content of this presentation
TSXV: NCX 20Combined Hushamu and Red Dog Resource
Indicated Resource
o Copper: 1.83 Billion lb
o Gold: 3.3 Million oz
o Molybdenum: 67.3 Million lb
TOTAL INDICATED CONTAINED METAL
Cut-off
(%Cu) Tonnes %Cu ppm Au %Mo ppm Re Copper B lbs Gold M oz Mo M lbs Re Kgx1000
0.15 341,600,000 0.24 0.30 0.008 0.482 1.83 3.3 67.3 164.7
TOTAL INFERRED CONTAINED METAL
Cut-off
(%Cu) Tonnes %Cu ppm Au %Mo ppm Re Copper B lbs Gold M oz Mo M lbs Re Kgx1000
0.15 147,700,000 0.18 0.23 0.006 0.34 0.59 1.1 19.5 49.9
TSXV: NCX 21info@northisle.ca
www.northisle.ca
T: 604-638-2515
F: 604-669-2926
15th Floor – 1040 West Georgia Street
Vancouver, BC V6E 4H1
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