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

Transcription

1 A New Direction Developing Copper Assets in Canada s North June 1, 2017 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 Copper North Mining: 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 initiation of exploration. Re-Engineering Carmacks Project: 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. A NI Preliminary Economic Assessment report has been prepared and the full report is in preparation; see Oct. 12, 2016 news release. Note that the report is preliminary in nature and there is no guarantee that mineral resources will be converted into mining reserve, or that the PEA will be realized. Copper North Asset Growth: Carmacks: Resumption of exploration, advancing towards 100% increase in mineral resource and the potential for further expansion. See new NI mineral resource report, February Thor Project Acquisition: adds a high potential porphyry copper-gold discovery opportunity, adjacent the Kemess mine and mill property in Northwest BC. TSX.V: COL A New Direction 4

5 COPPER NORTH Corporate Structure Capital Structure (as at June 1, 2017) Copper North Symbol TSX.V.Col Issued: 30,106,473 Options: 2,719,000 Warrants: 9,587,990 Fully Diluted: 42,413,465 Working Capital (Q4) ( as at Dec 31, 2016 ) Current Assets: $413,094 Liabilities: Accrued liabilities: $728,321 Related Party: $350,334 Previous employees: $163,909 Current Steps: $121,550 FT financing closed Oct 3, 2016; additional financing in progress. Complete Carmacks Preliminary Economic Assessment (PEA) October 12, Closed Oct 12, 2016, $157,500 Unit financing. Closed Jan 3, 2017, $276,120 FT financing and $27,500 Unit financing. Closed Feb 22, 2017, $200,000 Unit Financing. Closed April 13, 2017, $78,000 FT and Unit Financing. TSX.V: COL Corporate Structure 5

6 New Preliminary Economic Assessment (PEA), October CARMACKS PROJECT: Investment Attraction 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: reduces transportation and treatment expense, as compared to cost of shipping and processing copper concentrates. Near Term Production ( Q2 2019). Forecast annual production of 30Mlbs (13,600 tonnes) LME Grade A copper cathode and 19,500 oz gold; silver recovery (21,600 oz; under review). Carmacks Exploration: 2015 new exploration success; doubles mineral resource and confirms good potential for additional resource expansion. TSX.V: COL Investment Attraction 6

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

8 CARMACKS PROJECT Geology & Mineral Zones 5km long mineral structure hosts 16 copper-gold zones. Near surface oxide mineralization underlain by substantial sulphide mineral resource. Prior Mineral Resource based on zones 1,4, 7 & 7A definition drilling on zones 2000S,13 and 12 doubles mineral resources in oxide and sulphide. TSX.V: COL Carmacks Geology 8

9 CARMACKS PROJECT 2014 NI MINERAL RESOURCES OXIDE SULPHIDE Resource Category 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 October 2016 PEA supersedes the November 2012 Feasibility Study prepared by M3 Engineering and Technology, June 2014 PEA and February 2016 NI for Carmacks Mineral Resource report. 5. New feasibility study is in progress with Oct 2016 Preliminary Economic Assessment: 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 9.

10 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 & Ag under review. TSX.V: COL Zone 1 Oxide Copper 10

11 Carmacks Project Resumption Of Exploration, 2015 Mineralized Zones Over Six Kilometre Long Trends TSX.V: COL Carmacks Project Zones 11

12 Maiden Mineral Resource : South Zones 12, 13 and 2000s January 25, 2016 Resource Inventory New Mineral Resource : All 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 Carmacks Project Oxide and Sulphide Distribution TSX.V: COL Carmacks Project Zones 13

14 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 14

15 Zone 13: Magnetics and Drill Holes 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 15

16 JDS Process Plant, Mine and Waste Facilities Layout Hatch Oct 2016 plant layout: TSX.V: COL Carmacks site Plan 16

17 JDS Two Stage Agitated Leach Tank Process TSX.V: COL Carmacks Process Plan 17

18 Carmacks Operating Costs: Oct 2016 PEA The operating cost for Carmacks Project is an extract of the PEA and the cost information is preliminary in nature and may not be realized (see October 12, 2016 news release). TSX.V: COL Carmacks Operating Plan 18

19 Carmacks Project Economics (Oct 12, 2016 PEA) Consensus Pricing Case: Copper US$2.75/lb; Gold US$1300/oz and Silver 17.50/oz. The Carmacks Project Economics is part of the NI PEA (see Oct 12, 2016 news release. The PEA is preliminary in nature and there is no guarantee that the mineral resources will be converted into mineable reserves, or that PEA will be realized. TSX.V: COL Carmacks Project Economics 19

20 Carmacks Project Sensitivity PEA Base Case: US$ Pricing: $2.50/lb Copper; $1300/oz gold and $17.50/oz silver Consensus Pricing: US$2.75/lb Copper, US$1300/oz gold and US$17.50/oz silver. Project Economics: Expansion of mine life is the key objective of increasing IRR and NPV 8% valuation. Numerous other opportunities are available for reduction of capex and opex. The sensitivity analysis is from the NI PEA for the Carmacks Project (see October 12, 2016 news release) TSX.V: COL Project Sensitivity 20

21 Carmacks Project Opportunities 3 Steps Resource Expansion Extension of mine life increases NPV and IRR. 3.7M tonnes of Measured and Indicated oxide mineralization defined in 2015 drilling. Additional drilling planned for 2017 to confirm mineral resources and develop a mine plan for the new zones. Preliminary evaluation of potential sulphide resource for future development Additional mine production Metallurgy: Additional metallurgical tests to optimize reagent consumption, increase silver recovery, and source reagent costs. Capex and OPEX Reduction: Engineering work has indicated opportunities to reduce equipment cost, reduced reagent consumption and costs, and reduced construction costs. TSX.V: COL Carmacks Opportunity 21

22 Opportunities Identified In PEA Project, Carmacks PEA Capex Cost Reduction: (target 10%) Optimization of solid/liquid separation processes. More detailed engineering and sourcing of equipment made in China and others. Reduction of PEA Operating Cost: (target 4%) Increased recovery of silver with additional metallurgical test work. Reduction of reagent consumption. Alternative processes for cyanide destruction in process slurry. Sourcing globally for lower cost reagents. Resource and Mine Expansion: (increased NPV) Definition drilling to confirm M&I resource for zones 2000S, 12 and 13. Target to add 3 more years of oxide mineral resource. TSX.V: COL Project Opportunities 22

23 Economic Estimates of Model Assumptions Estimate Economics: what Carmacks might look like after 2017 engineering and mine life expansion to Pre-Feasibility. Basic pricing: (US$2.75/lb Cu; US$1300/oz gold and US$17.50/oz silver) & (US$3.00/lb Cu, US$1300/ozAu and US$17.50/oz Ag) Pricing Prefeasibility PEA, Oct 12, 2016 Cu US$2.75/lb Improvements Estimate Model Cu US$2.75/lb Estimate Model Cu US$3.00/lb Estimate Model Cu US$3.00/lb 10% capex and 4% processing, 60% Ag 10% capex and 4% processing 60% Ag Estimate and production recovery, 5% discount rate recovery, 5% discount rate for 8, 9 and 10 years oxide Production Mine Life 7 yrs 7 yrs 7 yrs 7 yrs + 3 yrs Annual Production (Avg) 30Mlbs Cu, 19,500 30Mlbs Cu, 19,500 oz Au & 138,000 oz Ag 30Mlbs Cu, 19,500 oz Au & 138,000 oz Ag ozau, 21,600 ozag Life of Mine Production 213MlbsCu,136KozAu 151K oz Ag 213M lbs Cu, 136,000 oz Au & 967,000 oz Ag 213M lbs Cu, 136,000 oz Au & 967,000 oz Ag Capex (including CAD$263.6M CAD $240.5M CAD$240.5M contingency) LOM Gross Revenue CAD$981.0M CAD $999.3M CAD1,067.6M LOM Net Op. Revenue CAD$450.0M CAD $514.2M CAD$546.9M Annual Operating Range CAD$49- $90M Range: CAD$52.8M to CAD$95.1M Range: CAD$61.4M to CAD$105.4M Revenue Annual Op Revenue Years 6.5 to 9.5 Economics Cash Cost Production C1 US$1.08/lb /All in NPV Pre-tax/after tax (disc 8%) IRR Pre-tax/after tax (disc 8%) Payback (Pretax/Aftertax) Estimate Range CAD$30M/years 8, 9 &10 C1 US$0.97/lb Cu All In US$1.05/lb Cu C1 US$0.97/lb Cu All In US$1.05/lb Cu US$1.13/lb/ Cu & US$1.16/lb All in US$1.19/lb Cu CAD$55.9M CAD$137M/After Tax CAD $77M CAD$189.3M/After Tax $109.6M CAD$259.5M/ After After Tax$8.1M (Disc 5%) (Disc 5%) Tax/CAD$156.4M 14.2%/ 19.0% /After Tax 13.9% 23.6%/After Tax 17.5% 25.8%/After Tax 19.7% After Tax 10.2% (Disc 5%) (Disc 5%) (Disc 5%) 4.3/4.6 years 3.5/3.9 years 3.0/3.3 years 3.0/3.3 years The Estimate is forward looking and demonstrates sensitivity to various assumptions. The Estimate is not NI and investors should rely on the PEA dated October 12, 2016 TSX.V: COL Estimated Outcomes 23

24 Carmacks First Nations and Environment Risk Reduction First Nations and Community Copper North has a Consultation agreement with the Little Salmon/Carmacks First Nation. The agreement ensures the First Nation is well-informed about the project and provides for timely and meaningful consultation on the project before entering the permitting process. Environmental Benefits of Re-engineering Replacing heap leaching with agitated tank leaching has several clear environmental benefits, including: Reduction in the overall project footprint; Elimination of the potential for a failed heap and the associated closure issues: Three levels of containment for each of the copper and gold leach circuits; The ability to pass all of the leach residue through the cyanide destruction circuit before placement in final storage rather than treating the seepage from the heap during and after closure; Production of filtered tailings for dry stack storage a Best Available Technology for tailings storage; Water filtered from the tailings is returned to the process, reducing the overall water requirement for the project; and, Project closure is simplified, facilitating progressive reclamation. TSX.V: COL Environment and First Nations 24

25 Carmacks SXEW Copper Production Project TSX.V: COL SXEW Copper Production 25

26 C1 Cash and All-in Cost of Global New Mine 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 PEA Oct 2016: US$1.08/lb Cu C1 Cash Cost M3 Oct 2012 Feasibility Study: US 1.67/lb Cu TSX.V: COL Carmacks Cash Cost of Production 26

27 Cash and Total Cost of Current Mine Production (June 2016) Current Copper Price (US$2.60/lb), more than 10% of mines are operating below C1 cash cost and more than 25% operating below Total Cost of production. Carmacks Total Cost Carmacks C1 Cash Cost Reuters Incentive Price, US$3.14/lb,required to meet new mine production Wood Mackenzie Long Term Pricing, US$3.30/lb Cu at current exchange rate, TSX.V: COL 27

28 Copper North THOR PROJECT in Kemess Mine District Kemess Mine (North West B.C ) on care and maintenance; $1.1B replacement value. TSX.V: COL Thor Property 28

29 Kemess District and Thor: Attractive Exploration Opportunity Thor Project: well positioned in the NNW trending porphyry copper-gold-silver belt. 20,400 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 29

30 Kemess Mines and Mill with Thor in Background Thor East Discovery TSX.V: COL Discovery Opportunity 30

31 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, midway along a 75 km belt of porphyry copper-gold deposits. 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 31

32 Multiple porphyry gold- copper deposits along the 75 km trend of Kemess, Thor, Goldvale, Copper King and Kliyul porphyry copper-gold deposits. Kemess South Extension Mineral Belt TSX.V: COL Discovery Opportunity 32

33 THOR PROJECT Unique Discovery Opportunity Thor Project: A Unique Opportunity For Discovery Adjacent To Shutdown Kemess Mill. Large property (20,400 hectares) located 20 km south of Kemess mine and mill facilities and straddling main access road and power lines. Intrusive complexes considered to be of early Jurassic age, similar to those hosting Kemess South and Kemess North and East porphyry copper-gold deposits. 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 Moose Valley fault; multiple targets over 10 km long trend in Thor East block. Maiden drill hole intersected porphyry Cu-Au style of mineralization. Thor West Target: Located to west Moose Valley fault, overburden covered and unexplored. Airborne magnetics indicated a large magnetic anomaly similar to an intrusion. September 2016 drill hole did not confirm porphyry copper mineralization in south end of geophysical targets; more drilling warranted in northern part of the anomaly. TSX.V: COL Discovery Opportunity 33

34 Thor Target Area Summary Thor Geology, Geochemistry and Geophysics Thor East Target (Area 3 and 4): Several small intrusions similar to those at Kemess South; multiple targets over an area of 4x6 km. Six short drill holes in 1997: only one drill hole within intrusion - intersected porphyry mineralization with 60 metres grading 0.12 % copper and 0.04 g/t gold. Thor East, September 2016 discovery drill hole: m of 0.14% Cu and g/t Au. Interpreted as being located on edge of porphyry copper-gold deposit. Further exploration and drilling to focus on 4 by 6 kilometer Thor East area block. TSX.V: COL 34 Thor Target

35 Thor East, Multiple Targets Area Thor East Mineral Belt Multiple gossan and geochemical anomalies within 4 by 6 km Thor East Belt. Extensive quartz-carbonate vein zones in overlying Takla volcanic rocks with numerous 1 to 3 gram gold grab samples. Drill hole TH16-01 intersected : m grading 0.14% Cu and g/t Au, including: m grading 0.23% Cu and g/t Au from to m depth m grading 0.28% Cu and g/t Au from to m depth. 2 metres grading 0.54% copper contains 0.32 g/t Au, suggesting increased gold content as move in from the edge of porphyry deposit. Detailed mapping, sampling and geophysical work is required to better guide future drill holes. TSX.V: COL Thor East Target Area 35

36 THOR East Discovery Area TSX.V: COL Discovery Opportunity 36

37 THOR EAST DISCOVERY AREA TSX.V: COL Discovery Opportunity 37

38 THOR East Target 3 Area Copper stained granodiorite; 40 metres NE of TH TSX.V: COL Discovery Opportunity 38

39 Thor East Drill TH16-01, Discovery Hole TSX.V: COL Thor Discovery 39

40 Porphyry Stockwork Veining Drill hole TH16-01 TSX.V: COL Title of Presentation Goes Here 40

41 CORPORATE Bill LeClair - Director Former President and Chief Executive Officer of Crew Gold Corporation (now Severstal) Bill Koutsouras - Director Former Executive Vice President and Chief Financial Officer of Endeavour Financial Ltd. Robert McKnight Director Mining Engineer with experience with widespread and is currently Executive Vice President and CFO of Nevada Copper Corp. He has held senior roles with Brascan Resources, Getty Resources, Total S.A., Endeavour Financial, Runge Pincock, AMEC, Yukon Zinc and Selwyn. Dr. Harlan Meade President, CEO and Director Former President and CEO Selwyn Resources Ltd.; Yukon Zinc Corporation Rebecca Moriarty- Chief Financial Officer Mrs. Moriarty is a Chartered Professional Accountant with over 16 years of experience related to the mining industry. Experience includes 11 years at PricewaterhouseCoopers LLP working with public resource companies. She has a Bachelors degree in Geology from Queens University. Doug Ramsey - VP Sustainability & Environmental Affairs Former Manager Environmental Assessment, Permitting & Natural Resources of Wardrop (a Tetra Tech Company) Corey Dean Corporate Secretary Currently a Managing Partner at DuMoulin Black LLP, Mr. Dean has practiced corporate, securities and natural resource law with a focus on corporate finance and mergers and acquisitions since TSX.V: COL Appendix 1 Senior Management & Board 41

42 Suite West Pender St. Vancouver, BC V6E 2M6 T: F: June 1, 2017 February 2014 TSX.V:COL OTC CPNVF