A New Direction. Developing Copper Assets in Canada s North TSX.V:COL. July 21, May 2013

Transcription

1 A New Direction Developing Copper Assets in Canada s North July 21, 2016 May 2013 TSX.V:COL

2 FORWARD LOOKING STATEMENTS This presentation includes certain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company s expectations include, among others, the timeliness of regulatory approvals, the timing and success of future exploration and development activities, exploration and development risks, market prices, exploitation and exploration results, availability of capital and financing, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, unanticipated environmental impacts on operations and other exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that the proposed exploration and development of the mineral projects will proceed as planned, market fundamentals will result in sustained metals and mineral prices, and any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. The technical report entitled "Preliminary Economic Assessment of Copper, Gold, and Silver Recovery" (the "July 2014 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 enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. Refer to the July 2014 PEA, filed on SEDAR under the Company's profile on July 14, 2014, for a discussion of the applicable qualifications and assumptions and the impact on the results of the previous studies on the Carmacks Project. National Instrument Dr. Harlan Meade, PGeol., President and CEO of the Company, is the Qualified Person who has reviewed and approved the content herein, for compliance with National Instrument TSX.V: COL Forward Looking Statements 2

3 COPPER NORTH PROJECTS Development CARMACKS PROJECT 100% * (Yukon, Canada) 2014 Measured & Indicated Resource 11.98Mt@ 1.07% Cu, 0.456g/t Au and 4.58g/t Ag. 282 M lbs Contained Copper, 171,800 oz Au & 1,705,800 oz Ag Exploration REDSTONE PROPERTY 100% * (NWT, Canada) YUKON NORTHWEST TERRITORIES Stratiform Copper Deposit Historic Resource Estimate % Cu & 11.3 g/t Ag Contained Metal (Cu) 2.9Blbs (1.3Mt) BRITISH COLUMBIA Thor Porphyry Copper Gold* (North Central BC)h Columbia Historic copper-gold occurrences adjacent Kemess. The historical estimate for the Redstone property is derived from a technical report entitled Technical Report on the Coates Lake Copper Deposit, Nahanni Mining District, Western Northwest Territories for Lumina Resources Corp. dated August 15, 2005 prepared by A.W. Gourlay, P.Geo. This technical report was filed on SEDAR on April 2, 2007 under the profile of Western Copper and Gold Corp., a predecessor company to Copper North. The source and date of the historical estimate, key assumptions, parameters, methods used to prepare the historical estimate, and information concerning further work required to upgrade or verify the historical estimate as current mineral resources are contained in the Company s news release dated May 10, This news release can be found under the News Release section of this website. Copper North is not treating this historical estimate as current mineral resources and the Qualified Person responsible for review of the historical resource has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. TSX.V: COL Projects 3

4 Carmacks Copper-Gold-Silver Deposit - A New Direction Restructuring and Refinancing: New President and CEO March 2014 New management has raised approximately $6.5M to clean up arrears, re-engineer Carmacks Project and acquisition of Thor Project and preparing it for drilling. Re-Engineering: Change from heap leach to agitated tank leach to include recovery of gold and silver. Re-engineering provides improved operational control and metal recovery; capex reduction indicated. De-risk environmental concerns and leach operations. Carmacks copper-gold- silver Preliminary Economic Assessment report schedule for mid August 2016 Asset Growth: Carmacks: Resumption of exploration, advancing towards 100% increase in mineral resource and the potential for further expansion. New resource inventory soon! Thor Project Acquisition: adds a high potential porphyry copper-gold discovery opportunity adjacent the Kemess mine and mill property in Northwest BC. Drilling at Thor scheduled for August 2016 TSX.V: COL A New Direction 4

5 COPPER NORTH Corporate Structure Capital Structure (as at July 22, 2016) Copper North Symbol TSX.V.Col Issued: 23,187,473 Options: 960,500 Warrants: 8,463,578 Fully Diluted: 32,611,551 Working Capital (Q1) ( as at March 31, 2016 ) Current Assets: $474,000 Liabilities: Accrued liabilities: $251,000 Related Party: $522,000 COL Next Steps: $425,600 unit and flow-through share financing closed June 30, 2016; tranche two $314,900 closed July 22, Complete Carmacks Preliminary Economic Assessment (PEA) early August Carmacks Project Financing commences upon completion of the PEA. Initial drilling of Thor Project in NW BC, adjacent dormant Kemess mine and mill facility. Consolidation of sharess on a one for ten basis. TSX.V: COL Corporate Structure 5

6 CARMACKS PROJECT: Investment Attraction New Preliminary Economic Assessment, due August Canada and Yukon: low political risk jurisdiction, stable tax regime, current exchange rate favourable for investors. Ownership: 100% (subject to $1.2M capped royalty). Infrastructure: road access; 10km transmission line to the grid. High-grade: oxide copper with significant recoverable gold and silver. Cathode Copper: reduced transportation and treatment expense, as compared to cost of shipping and processing copper concentrates. Near Term Production ( Q2 2018). Forecast annual production of 30Mlbs LME Grade A copper cathode and 17,300 oz gold and 165,000 oz silver. Carmacks Exploration: 2015 new exploration success, doubles mineral resources and confirms good potential for additional expansion. TSX.V: COL Investment Attraction 6

7 CARMACKS COPPER Excellent Infrastructure TSX.V: COL Carmacks Location 7

8 Carmacks Project Resumption Of Exploration New Oxide Measured and Indicated resources for Zones 12, 13 and 2000s TSX.V: COL Carmacks Project Zones 8

9 CARMACKS PROJECT Geology & Mineral Zones 5km long mineral structure hosts 16 mineral zone. Near surface oxide mineralization underlain by substantial sulphide mineral resources. Prior Mineral Resource based on zones 1,4, 7 & 7A definition drilling on zones 2000S,13 and 12 doubles mineral resources. TSX.V: COL Carmacks Geology 9

10 Zone 1 Trench : Metallurgical Bulk Sample TSX.V: COL Zone 1 Oxide Mineralization 10

11 OXIDE SULPHIDE Resource Category CARMACKS PROJECT 2014 NI MINERAL RESOURCES Ktonnes Total Copper (%) Acid Sol Cu (%) Gold (g/t) Silver (g/t) Measured 4, Indicated 7, M + I 11, Inferred Measured Indicated 3, M+I 4, Inferred 4, Notes: Mineral resources at 0.25% total copper cut-off. Based on zones 1,4,7 & 7A. Notes: 1. Mineral resources are based on Zones 1, 4, 7 and 7a. A more detailed review of the mineral resources is contained in the July 14, 2014 PEA. Mineralization in other zones not included in resource estimate. 2. Mineral Resources include 90,000 tonnes of Inferred mineral resources, representing 0.75% of the total mineral resource. There is no certainty that definition drilling will convert the Inferred mineral resources into Measured or Indicated categories. 3. The previous economic assessment in the July 14, 2014 PEA, only utilizes the oxide mineral resources and does not include the sulphide mineral resources. 4. The July 14, 2014 PEA supersedes the November 2012 Feasibility Study prepared by M3 Engineering and Technology. 5. New feasibility study is in progress with Preliminary Economic Assessment Q3 2016: application of agitated tank leach, results in removal of heap leach pads and significant reduction of previous estimated capital costs. TSX.V: COL Carmacks Mineral Resources 11.

12 Maiden Mineral Resource : Zones 12, 13 and 2000s January 25, 2016 Resource Inventory New Mineral Resource : Zones 1,4,7,12,13, & 2000s Tables extracted from January 25, 2016 news release; NI report on SEDAR March 10, TSX.V: COL Resource Inventory 12

13 2015 Exploration Success: In Zones 2000S, 13 and 12 Zone 13 Zone 1, 4 and 7 Zone 2000S Zone 12 Zone 13 TSX.V: COL Zones 13 and 12 13

14 Zone 13: Drill Holes and Magnetics 2015 Exploration Definition Drilling Zone 12 and 13 define a 1500 meter mineralized zone of oxide and sulphide mineralization. Zone 13 drilling focused 600 meter long mineralized trend. Transition zone at depth contains significant amounts of native copper and chalcocite enrichment. New subparallel oxide zone located to the west of Zone 12 mineralization. Zone 12 mostly transition zone with mixed oxide & sulphide mineralization. TSX.V: COL South Zone 14

15 2015 Zone 13 Drilling and Trenching TSX.V: COL 2015 Drilling 15

16 Capex Reduction Opportunity Joint Canada-China Feasibility Study Re-engineering to simplify operations and reduce CAPEX and OPEX. Benchmarking indicates substantial cost savings using Chinese engineering and procurement. Current CAPEX Target : US$150M for new development plan. TSX.V: COL Joint Canada-China Feasibility Study 16

17 Zone 1 Oxide Copper Resource South Zones 12 & 13 Zone 1: Malachite and tenorite copper minerals: fracture coatings and disseminated oxide copper. Recovery: New metallurgy indicates higher recoveries. 86%Cu, 85%Au & 65%Ag. TSX.V: COL Zone 1 Oxide Copper 17

18 May 2016: Crush, Grind and Leach Plan For Copper, Gold & Silver. TSX.V: COL Copper & Gold process plan 18

19 Carmacks Mine and Process Facility Plan Layout; Hatch June 2016 TSX.V: COL Process and Mine Facility 19

20 SXEW Copper Production TSX.V: COL SXEW Copper Production 20

21 Carmacks: Cash Cost of New Production C1 Cash Cost required for new mines needed by 2020 to meet the forecast 5 million tonnes of new copper supply. Many of these projects are now shutdown pending improved metal prices. C1 Cash Cost Carmacks PEA July 2014 C1 Cash Cost Carmacks Target for May 2016 PEA C1 Cash Cost M3 Oct 2012 Feasibility Study TSX.V: COL Carmacks Projected Cash Cost of Production 21

22 Cash and Total Cost of Current Mine Production (June 2016) Current copper price (US$2.12/lb), more than 10% of mines are operating below C1 cash cost and more than 40% operating below Total Cost of production. Incentive Price required to meet new mine production is approximately US$6921/tonne Cu (US$3.14/lb Cu). TSX.V: COL 22

23 Northwest BC :THOR JOINT VENTURE OPPORTUNITY Kemess Mine, North Central B.C: on care and maintenance; $1.1B replacement value. August 2016 Thor drilling planned adjacent Thor property. TSX.V: COL Thor Property 23

24 KEMESS MINE: District Geology Kemess Mining District Numerous porphyry coppergold and epithermal goldsilver deposits. Thor target area is well located to the southeast of the shutdown Kemess mine and mill facility. A discovery at Thor could be very attractive for early production. Thor property situated at bottom of image underlain by Takla Volcanic rocks, host to Kemess suite of intrusions. TSX.V: COL Thor Geology 24

25 THOR PROJECT Unique Discovery Opportunity Thor Project: A Unique Opportunity For Discovery Adjacent To Shutdown Kemess Mill. Large property (16,050 hectares) located 20 km south of Kemess mine and mill facilities and straddling main access road and power lines. Thor West Target: Located in Moose Valley overburden covered and unexplored. Airborne magnetics indicate a large intrusive complex in Moose Valley and 2014 induced polarization survey confirms large chargeability anomaly; coincident with areas of low magnetic susceptibility, interpreted as porphyry style alteration effect. Thor East Target: Airborne magnetics indicate numerous small stocks associated with alteration zones and copper-gold anomalies. Extensive alteration and mineralization zone located east of Thor West, along 15 km trend. Known porphyry Cu-Au style mineralization the with only a few drill holes (1998 ). Recognition of the presence of leached cap, is key to re-evaluating anomalies. Intrusive complexes considered to be of early Jurassic age, similar to those hosting Kemess South and Kemess North and East porphyry copper-gold deposits. TSX.V: COL Discovery Opportunity 25

26 Kemess District and Thor: Attractive Exploration Opportunity Thor Project: well positioned in the NNW trending porphyry copper-gold-silver belt. 16,000 ha The reference to production history at Kemess mine simply defines characteristics of a successful mine and development of a property in the Kemess mineral district. Despite the Thor property s proximity to the Kemess South Mine, Kemess North and Kemess East, no mineral resource has been identified at Thor and there is no certainty that exploration will define economic mineralization or a mineral resource on the Thor property. TSX.V: COL Thor Location 26

27 Thor Target Area Summary Thor Geology and Geophysics Compilation Thor West Target (Area 1): Large (3km by 2km) induced polarization anomaly in covered area in Moose Valley hosted within a probable large intrusion. Proposed reconnaissance drilling to test anomaly and confirm geological environment. Thor East Target (Area 3 and 4): Several small intrusions similar to those at Kemess South; multiple targets over an area of 4x4 km. Large area of soil and rock samples with highly anomalous copper and gold. Six short drill holes in 1997: only one hole drilled within intrusion - intersected porphyry sulphide mineralization at a depth of 60 metres; grading 0.12 % copper and 0.04g/t gold. TSX.V: COL 27 Thor Target

28 Thor West Target Area in Moose Valley Focus of 2016 drilling at Thor West. TSX.V: COL Moose Valley 28

29 Suite West Pender St. Vancouver, BC V6E 2M6 T: F: July 21, 2016 February 2014 TSX.V:COL